The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-01-13
WACGENER'S WAY
Has Plan and Bill for Bank
Guaranty Law
Which VIII Be Presented for
Consideration.
A SMALL GENERAL TAX
Says Few DepOsitOrs Lost in Re-
cent Panic
Ruf That IahOroT.S WifhOut he.
A SMALL GENERAL TAX
But That LabOrers Without De-
pOsits Heaviest Losers.

BP. Waggener, of Atchison. has CIV
en- out an interview in support of his
suggestion to levy a tax of one-tenth of
1 mill on the dollar to create a bank
guaranty fund. He says:
Every patriotic citizen wants to do
what is right relative the proposed
guaranty of bank deposits. Every one,
regardless of the business in which he
is engaged, is interested in a proper So
luton of the problem. There is, and
should be- no political significance at
tached to or connected with the meas
ure. To adopt measure in which ma
tional banks may not participate would
sands of dollars of taxable property in
vested in national banks. To provide
security for depositors in the state
banks alone would be an invidious dis
ttnction ard discrimination. Indeed, it
is very doubtful if the legislature has
the constitutional power to adopt any
of the measures heretofore suggested
which contemplate an assessment upon
the banks to make good the guaranty
fund
"A voluntary assessment would be as
useless as it is sensesless. 1t would
furnish no adequate security to the de-
positor. The levy of a lawful tax upon
all taxable property would not only at
ford ample security, but would abSo-
lutely be no burden upon any one, if
limited to one-tenth of l mill on the
dollar.
What 1t Would Cost.
BASED upon the valuation of property
for taxation for the year 1908. one
tenth of 1 mill on the dollar would pro-
duce approximately $250,000. Continue
this levy for ten years, and the fund
ed at not less than per cent per an
rum, on approved security, like the per-
manent school fund, or other public
funds, would produce $4,000 annually
as an accretion to the fund; or, If in
vested in Kansas bonds, at per cent,
would produce $125,000 annually Who
would be burdened by tax of one
tenth of 1 mill on the dollar? Certain
ly not the farmer. The tax of one
tenth of 1 mill on the dollar on a farm
valued at $4,000 would equal $3.50 per
annum; 900 would equal 81 per an
mum; $1,000 would equal so cents per
annum; 81, 500 would equal % cents per
annum.
TT would cost the man with a
homestead in a city worth $1,000, just
ten cents per annum, and one owning
a homestead in a city worth $500, just
five cents per annum. 1t would cost
bank with a capital of $250,OOO. $25
per annum; 100000. $40 per annum;
$4,000, IS per annum; $4,000, $3.50
per annum. 1t would cost the mer-
chant, with merchandise valued at
$4,000, SO per annum; $4,000. $3.50
per annum; $500, seVenty-fve cents
per annum; $4,000, thirty cents per
annum. The oil companies, the gas
companies, the electric light companies
and telephone companies, the water |
companies the street railway COM
panieS, the railroad companies, and all |
other corporations with aggregate tax |
able property of 100000, would |
pay $4,000 per annum.
ION November %. 1908, there was |
on deposit in the banks of Kansas
$3.50, 100000 These deposits, at the |
rate of one-tenth of one mill on the |
dollar, would pay annually, if all as
5essed. only $4,000 1t will therefore |
be seen that a guaranty fund thus
created would be burden upon no
one, and yet afford absolute security
and establish unquestioned confidence.
Not for Depositors Alone.
''As I understand the bank guaran-
ty proposition, it is not intended for |
the sole benefit of the depositor. 1t is
intended to prevent financial panics
and disturbances which paralyze and
disturb all kinds of business, Take,
for illustration, the panic of 1907 and
1908 Very few depositors sustained
any loss by the failure OF the banks in
the United States. Their loss. if any,
was lack of currency to meet their de-
mands. No guaranty law yet devised
Or suggested will supply the currency
70 pay off all deposits at once.
1.-The principal and most serious
loss in 1907 and 1908, as a result of
he panic, was sustained by the labor
ing man who had no bank account,
and who paid no taxes, but who had
4 family dependent upon his labor for
heir daily bread. Because of lack Of
confidence the factory was closed.
he mill shut down, the furnace fires
went out the crops ceased to move |
FOR there was no market, and the Ia
boring man lost his job until CON
idehce was restored, and, in the mean
Tine. he and his family went hungry
1.-The guaranty deposit law, if good
FOR anybody. is good for everybody
of his or her station in life
If it would protect the depositor. it
would protect the merchant, the far
ner, the laboring man who works for
The depositor The railroad company
The insurance company. the oil COM
Dany. and all corporations doing bust
ness in the state, even though they de-
post no moneys in the banks of the
state, would be benefited by a
deposit law which protects
The depositor with whom they tran
sact business.
Every citizen who pays any tax
his proportion to the sup
port and maintenance of the state in
sane asylums, vet how few enjoy