The Ellensburg dawn. [volume] (Ellensburg, Wash.) 1898-1914, 1909-01-28

Why not make the oepos''or secure;
n. United states government requires
4, deposit Of specific security when it
..,.,s money toa national bank, al
',.,,h Il can examine the bank at any
10. the state requires security and
=. ci,v requires security; even the
~, REQUIRE security from the officials
- handle money Why should the
ieuositor be left to take his chances:
N. only is the depositor without
,,o.actiop, but the security given to
'.,op state county and city lessons his
...ori,v. They are preferred creditors
~, have q mortgage on the gilt edged
...s.s and the depositor must get along
!. best he can with what remains.
nh, are the interests OF depositors
thus neglected.?
A bank asks deposits on the theory
,h., the deposition is sure OF the return
y ri, money, aud the laws ought to
make the facts conform to the theory.
rNs depositor, the community and the
banker himself will be benefited by
legislation which will give to every de
ncsi,or the assurance that that which
i committed to the keeping of the
h.nk will be available 10 meet his
nod. At any time. Such is not the
e.ss today, for while all banks are
reasonably secure, they are not aosoln'
.slv n This statement can be verified
In several ways.
First: The President has advocated
4 postal savings bank, and his post
master general, in presenting an argu-
meut in It's favor, pointed ont that
mapy millions are sent TO European
savings banks every year by Americans
Of foreign birth, who prefer to trust the
rate institutions OF the nations beyond
he sea rather than the private bank
Ing institutions here.
SeCOOu. IL - huO" LbaS "a N'''''N
cradle amount of money is in hiding
the amount increasing with the ap-
proach Of panic or business depres-
mon. This money is not only with
drawn from active use, but Is likely to
Be withdrawn just at the time when
the money is most needed and wren
the withdrawal will increase the imam
cisl disturbance. 1t is impossible to
reason with fear: it is futile to tell men
that they will probably get their
money. The moment the depo,itors
inspect bank they hasten to destroy
il solvency. Distrust, and distrus'
alone, can explain the hiding OF money
Third: The increase in the issue OF
money orders. payable 10 the order OF
The purchaser, is another evidence that
people are seeking greater security Tor
their money. The banks will pay an
interest upon deposits, and yet those
who buy money orders prefer to lose
the interest and, 10 addition to that,
pAy the price OF the money order to
iecure the government guaranty
Fourth: National banks confess that
their banks are not secure when they
oppose the guaranty OF state banks on
the ground that it would lessen the de-
poslts 10 national banks: and state
bankers confess that their banks are
not secure when they oppose national
guaranty system on the grouud that II
Will draw deposits away from state
banks. II you want to find whether
banks are absolutely secure, ask the
directors TO give you their personal
note TO secure your deposit and you
viii learn that they will not bear the
RISK which they ask you to bear
Filth: The experience of Oklahoma
furnishes conclusive proof that depos'
i1ors do not feel that their money IS
AIe 10 unsecured banks. On the l'th
Of December, 1907, the Oklahoma legs
azure enacted depositOrs' guaranty
NV, which became operative February
sn' lsOS. BY the provisions OF this
NV, Oil state banks. and as many ma
uooal banks as desire to avail them
's'Ves OF the law, are taxed one per
70 their deposits, and the money thus
.Olected is put into guaranty fund'
sas banking board is authorized 10