The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1908-09-12

/ Nv AAi AslNl llObl ~ NAllAhAhb lifN illt,N
The fact that such absurd and befog
ging arguments are beins put forth by
/ MIR. Tart and his newspaper friends
against it.
In a recent editorial inthe News
OF this city was The following para
graph;
Political discussion at the present
time seems 60 center about the pro-
posal 10 guarantee bank deposits Mr..
/ Bryan argues that the depositor
should be protected by the. goA erns
ment. SO that no matter in what sort
Of bank he may deposit his money
he may confidently look' TO the soy
crnmeut to insure the safety of II.
FThe United States ut the same time
would levy a tax upon an the banks.
/ good, bad and indifterepi and use tn.
proceeds OF the tax 10 make good the
losses To depositors through bad
| banks"
! The writer ,of that paragraph must
have known that Mr.. Bryan has ney-
or argued that the dcposiior would
I be protected by the government So
/ tbal no matter in what sort OF q bank
/ he may deposit his money he may
co4illdently look 10 the government 10
insure the safety of it
The two points above mentioned
soeIh' 10 have been used By Mr., rail.
/ In several OF HIS recent speeches and
She, Taft organs and auu.Bryan bush
whackGr newspapers keep repeating
IT, :
| This,subjcct is of too great import
airce a. lie people OF this, country to
be treated in g pettitoggng or dema-.
gQGic manner such as Is quoted above
/ We have already had too much OF pot
house political finance Let ms be
fair with each other in discussing our
honest differences Of opinion and On
deaVor 20 work ont financial and
banking system that viii rebound TO
tne benefit % all the people and not
lin the interest of any particular soc
.tion. Clique or combination.
President Roosevelt, ex.Sccretary Of
the Treasury Shaw, eX-Controiler OF
the Curredcy Ridgley and hundreds
,of others have said that We have one
lof the most 'uuscientiic banking and
currency systems TO be found among
kc!yili2ed countries and all agree that
something must be done tO.put II on
a more scientific. bdss Even the Unit
cd states senate and the house or
representative have seen the neces-
= sity of making improvements aud
have appointed committees 10. try to
devise some better plan.
a bank is, by It's very nature. sim
ply Gduciary agent for the pub{ic.
81 Il CORPORATION IL owes it's very eX'
Nsteace- To- the pcOplc. II Is created
primarily for their benefit In great
commercial nation like ours 1t IS
,uublic utility and should therefore be
Famenable TO the people who created
il and for whose use 1t was given be-
} ing. II Is true that the profits IRON
IFS cparations 20 into the pockets oi
kits shareholders and not TO the puohc
AZ larae but that does not lessen us
OBLIGATION 10 the people. Per contra
il increases II, and the fact that me
very laws creating II are supposed ~
Droyide for its control b. the repre-
sentatives OF the people Tin the case
al NATIONAL banks the controller oil
, the currency. and in the case ot ala'o
hanks the state banking commission
J ers( il evidence that tho people con
rsidcr the bank public" fduciary agent
tan1 should be treated as such
Nh Bryan. instead OF proposing 10
have the United States government
/, bguaranteG all banks. good. bad ana
] Indifferent" as the News states pro
) poses that before any national pans
Z Shall commence doing Business y
must comply with the law creating II
land that IL must continue TO comply
: with that law.
If me banking laws are wisely MADE
how can there be any bad or III
, different" national banks created un
! der them? Mr. Bryan does not pro
nose Ia guarantee the deposits In Dau
and Indifferent llaBbs. tar from II
, re proposes that there shalla-be on!
n good banks created by the government
E ana when such banks are created by
. the government let the government
set forth the fact that these bdnkH
are good by guaranteeing the SAFE re-
turn OF money entrusted TO theIr care
o but il will not guarantee the saIet! 81
{ deposits IN any other bank than those
created by it under It's laws, not even
= the best state and private 2anEs
These latter must operate under the
a0s of the state or territory IN. Whleh
,hey may be located.
Tine same principles advocated by
/ Mr. BRYAN as applicable to the control
| ol ami guarantee OF deposits in ma
| ( ional banks lry the general govern
IImeu( can readily De enacted into ia~
| and applied by the individual states
and territories. and we would. then
| | nave one OF the best and safest dc
: roit banking systems in the wor!d
The guaranteeing of bank deposit
. rs not "a new idea. nor did IL originate
i win Mr.. Bryan. nor does ne claim
: % bc The originator OF it. Several
Z several years ago while he was state
. treasurer. Daniel Mccoy, VINO was
y ALSO president OF the Michigan state
{ Savings bank OF Grand Rapids. made
/ q strong effort TO have the banks OF
ii this state adopt a voluntary deposl'
guarantee system by taxing them
. selves a small percentage on theh
q deposits. something similar TO the
| compulsory plan advocated by Afr
= Bryan today for natiopal banks
F. one of The principal objections &c
= Mr. McCoy's plan was that II was |,
b be purely voluntary on the part OF
p the banks and there was no legal pro
/, vision for enforcing compliance. The
& plan met with much FAVOR among
r tAe so.called country banks but the
= Detroit bankers very naturally threw
!, cold water on the plan, principally De
= cause II would materially strengthen
, ihc small Danks and thereby increase
= Nhclr popularity, and some OF tht
country" business now handled by
The Detroit banks might remain al
home in the smaller banks instead OF
b canning IN The Detroit hanks as Ii now