Carolina watchman. [volume] (Salisbury, N.C.) 1871-1937, 1908-09-16
THE GUARANTY OF BANK DEPOSITS.
Bankers Demand Security for Loans; Why
Not Securityfor Those Who Loan to Banks?
DEMOCRATIC NATIONAL HEAD. J
QUARTERS.
Cu1nAGn Santam haa 18th \

, Secretary Iatt abandoned the
pleasant practice Of golf at Hot
Springs the other day long enough
to make a speech attacking the
system proposed by the Demo-
cratic party and warmly urged by
Mr.. Bryan for the protection of
depositors in ranks, whether state
or national.
This system briefly expounded
means merely that all banks in a
certain specified territory should
be taxed a fraction of one per cent
upon their total deposits in order
that if any one should fail the
fund thus created should be avail
able for the imn,c. late payment of
all depositors: The plank in the
Democratic, platform covering the
matter 50 vital to every thrifty
and saving citizen is as follows:
| 9BANKT.G,
"The ponic of 1907, coming
without anys legitimate excuse
when the Republican party had
f-r decade been ii: complete con-
troll of the fedora, government,
furnishes additions' proof that it
is either unwilling or incompe-
tent to protect the saterests Of tie
general public, 1t has so linked the
county to Wall Street that the sins
of the speculators are visited upon
the whole people. While refusing
to rescue the wealth. pro15roefss
from spollation. az the ENDS OF
the stock gamblers, ! and specula-
tors in farm products, it has de-
posted treasury funds, without
interest and without compotlon,
in favorite banks. 1t bas used all
emergency for which iS Is largely
responsible to force through Con
gress bill changing the basis
of bank currency and inviting
marker manipulation and has
failed to give to the fifteen mil
lion depositors of the. country
protection in their savings.
"We believe that. stes' : as she
needs of commerce 're<lire al
emergency currency, such cur
rency should be issued and con-
trolled by the federal government
and loaned or adequate security
t. national and state banks. We
pledge ourselves to legislation
under which the natl ,nal banks
shall be required TO establish a
guarantee fund for the prompt
payment of the depositors Of
any insolvent national bank,
under an equitable system which
shall be availub1d To- all state
banking institutions WISHING to
use it.
"We favor a postal savings
bank if the guaranteed bank can
not be secured and believe that
it should be constituted so
as to keep the deposited money ID
the communities where the depos-
itors live. But we condemn the
the policy of the Republican party
in proposing postal savings banks
und a plan of conduct by VII ch
they will aggregate the DEPOSITS OF
the rural communities and rede-
posit the same while under gov
ernment charge III the banks tf
Wall Street, thus delpleting the
circulating medium of the pro-
ducing regions and unjustly favor.
ing the speculative market. -
When depositor takes fifty ol
a hundred dollars ard puts 1t into
a bank he lends it to the bank
, The bank uses it for purposes Of
. profit. When the bank lends
money to 8 farmer for the pur.
pose of carrying his crops, or to
the shop keeper in order that hi
, may be able to replenish his stock
or to the home-building mechanic
80 that he may erect for himsel
: q house, the bank exacts security
i, 1t must have mortgage or a ware
house receipt or a second name OIL
i, the back of the note. But whel
=. you 90 into q bank to deposit
you are given no security excep
the reputation of the bank itself
you get no second name on tn
, back of your deposit slip. VIII,
. should not the bank give securit
to it's depositors? 1t IS all yer,
- we'll to say that the conservatism
" and careful management of bank
- gives assurance that they will pa.
: their depositors and handle thei
depositors funds in such q way a
I, to keep them intact. But it ha
" not been more than eight or min
. months since practically foul
. fifths of the banks of the Unite
" States were refusing to pay thei
|, depositors money on demand
W They gave clearing house certif
y Gates, which at that time we're a
:, ! absolutely illegal as payment i