The Ellensburg dawn. [volume] (Ellensburg, Wash.) 1898-1914, 1908-10-02
GUARANTEE PLANK
A WINNING CARD
The Soundness Of the Law Has
Been EARLY Tested

Mons the plan: MIR. Taft is strongly
opposed to 1t.
Mr.. Taft and Guaranteed Deposits.
IN his speech OF acceptance Mr.. Taft
nuts himself sQuarely on record as be
ing opposed to guaranteed deposits.
Ne says: THE Democratic platform
recommends . tax upon national
hanks and upon such state banks a.
may come In. in the nature OF en-
forced insurance to raise guaranty
fund to pay the depositors OF any
hank which fails. The proposal Il
wholly impracticable unless it is to
be accompanied by a complete revo
luton in our banking system. with a
supervision so close as practically tc
create q government bank. II the
proposal were adopted exactly as tho
Democratic platform suggests. it
would bring the whole banking system
Of the country down in ruin"
Why seek to confuse the people on
. simple proposition! We are sup
posed to have Government SUPER
vision Of national banks now Super.
vision does not mean a government
bank; It simply means that the ma
tional bank inspectors will do just as
they are expected to do under exist.
ine lsw-make their examination OF
hanks thorough and make prompt and
effective correction Of any irregulari-
tiee discovered. So 1t will be diff1cult
10 brighten the people by the claim
that guaranteed deposits means tho
rough supervision Of banks. That's
Just exactly what the people want
Il ID absurd to say that guaranteed
deposits would bring the whole bank.
Ing system Of the country down to
ruin"
what does guaranteed deposits"
mean! Il means that the savings OF
he masses shall be secured so that
when men and women deposit their
hard-earned money in banking insti'
tutions. they need not worry for fear
h will be lost through the reckless.
ness and dishonesty OF bank officials.
The Federal Government demands OF
these banks security for the money
Il deposits. As a rule state govern.
ments and county governments and
municipal governments make similar
requirements. But now that 1t is pro-
posed that depositors generally shall
have some such assurance for the
afe keeping Of their wealth. we are
told BY the Republican candidate for
ths Presidency. that the adoption Of
inch Z plan would bring the whole
banking system Of the country down
b ruin"
. oklahoma's Object Lesson.
Oklahoma has the guaranteed de.
posit plan and the following Associat.
Cd Press dispatch tells Of It's opera.
hen In the FIRST bank failure since the
~ went into effect:
Guthrie. Okla. May 81, 1903
Within one hour from the time H. H.
?nock. Oklahoma banking commits
tteaer. had taken charge Of the In.
tssnadonal Bank Of Colgate he had
authority to pay the depositors in full.
nough the banks cash and available
tuAds IN other banks fell $4,000 short
Of me total amount OF deposits. The
commissioner was enabled to do this
Under the operation of the new bank.
Nc law, and this is the hrst time 1t
~ been called into use Under the
epsration Of the guaranty banking
aw OF Oklahoma tariff OF cent Is
cNed upon the average annual de-
poeite OF the banks. and this money
n used In payment in full OF all de.
pos'tors Of an insolvent state bank.
aner the funds have been exhausted"
VIII the Banks Answer This?
N addition to the arguments al
ready presented in favor Of the guar
anteed bank, the following is sub.
@itted:
To United States Government re-
vu'les q deposit Of specific security
"nen It deposits money in a national
.saK; the state also requires secur-
NY and the county and city deposits
gre secured either by bonds or by the
espcsit Of specific securities.
NOV the question arises. n the
oa"eo States Government, which can
) !. any time inspect a bank and find
t Just what It is doing and how It's
'u'mess Is being conducted, requires
!. security for its deposits, why should
/, 2o' security be given to the depos.
"o! Who cannot examine for himself
.as does not know anything about
e ranks solvency or methods? And
- 70 the national government, ia
.tase' to the county or to the city
.~ ua DO borne by all the people and
~ % small upon each one. while
=. .ese to the individual has to be
snfirely BY himself and may
ont his entire savings. Is no,
samsnt stronger in favor Of thu
scuon Of depositors than II is II
. .s'r OF the protection of the nation
- es.te. tie county or the city?