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

make additional assessments from, ill.,.
u TIME 10 Keep the fund up to thi,
amount, and is directed to take nossas
sion OF any insolvent bank, nav IN,
depositors in full, and reimburse the
lund 10y collecting the as,ests of III,
, rallied bank. Five hundred and Gftv.
hVe banks, including fifty four national
banks, had come under the provisions
OF TINS law on the ith OF last MAY, leav.
ing Zoo unsecured banks lall na,ionap
III 'he state Statements are made by
tue banks in December and NAV. Be-
tween these periods the secured banks
gained in deposits il, 237 1G5.222, while
the unsecured banks, all national,
showed decrease in deposit of Sill
So. large part OF this increase
represented money brought from hid
ing or from without the state, but the
decrease in the unsecured banks can
only be explained in one way. \ large
number ef depositors withdrew their
money from the unsecured banks, and
deposited it in the secured banks, and
TINS, too, in spite OF the fact that IN
order to prevent Withdrawals. the I'M
secured banks in some instances offered
a higher rate OF interest than the Sc.
cured banks were permitted 10 pay.
aud 1t must be remembered also that
the banks which suffered loss of
deposits were all national banks. And
to make it certain that the difference
was caused 10y the guaranty law, the
secured national banks gained, while
the unsecured banks lost. While the
deposits were increasing in the guar
anteed banks of Oklahoma, they were
failing in the state banks and trust
companies OF Kansas decrease be-
ing 81, lj},O2G.27 between March 3lst
and June 18th.
No amount OF criticism of the timid
depositor can change the facts; the peo-
pie who deposit money want more Sc
curi'y than the laws at present give
them. They will change banks to get
more security, aud, il necessary they
will send their money to another state
For many years efforts have been
made in Congress, ana in the various
states to secure a law guaranteeing
deposits, but the influence Of the great
banking institutions has been sufficient
10 prevent action. Last fall, however,
when lie banks by a concerted action.
suspended payments on checks the de-
positors we're every where brought to a
realization Of the fact that their depos-
its are in fact, loans, payable on de-
mand under ordinary circumstances,
but payable at the will OF the bank in
emergencies. The depOsiiora suffered
considerable loss during the ouptn-
sion of payments, and they have not
FORGOTTEN the lesson which they learn
ed. The democratic party, being more
free than the republican party to re-
snond TO the needs OF the masses OF the
neoDle. inserted the following plank IN
it, national platform:
1--WE pledge ourselves to legislation
he which the national banks shall be
reonired to establish a guaranty fund
for the prompt payment of the depo'l
Tors Of any insolyent national BANK
under an equiptable SISTER when
gh.u he available to all state banking
institutions wishing to use 1t.
This principal has been applied III
Oklahoma aud the results nave oee''
very satisfactory. The average an'u"'
loss to dcpositors in national oa"N'
1nring the last forty years has been
l,,.- ,h,n one.tenth of one per cent u
the deposits, and the loss to the 'uno It"
oDlahoma. under better regula'io"'
and restrictions, has been aoSo'u'ci9
nnthino during che six months IN "n'c"
tho law has been in operation
mo renoblican platform is silent GA
ha.nhiect and the republican cano'-
Wv w.. noi only does not advocate com,
,' 'l1so~y system, but specifically ana
p p'' a,ieally opposes it. He says
..Th. democratic platform r'oo"',
,av upon national banks ana
'',,',, .,rh state banks as may come Ill.,