The Marion daily mirror. (Marion, Ohio) 1892-1912, 1911-01-04
Ron. R. |. owen


negligible quantity.
The fact is that the banks contri-
buting this insurance have had their
deposits so greatly increased by the
additional safety offered, that 1t has
been very profitable to them as com
mercial and financial proposition, the
Increased deposits earning many tim
es the cost of the small contribution
to the guaranty fund-the deposits
of the state banks being nearly three
times what they were three years
ago, thus multiplying the earning
power of the banks.
Twelve years ago in the public
press l urged the guarantee of bank
deposits not so much for the benefit
of banks, or for the benefit of the
depositors, as for the stability of com
merce-the prevention of panic.
Financial panic is largely due to
the timidity of certain class of de-
postors for boarding.
Taking the banks and trust COM
panies as whole, their opponents
will average ten times their bdtal
cash. so that If five percent. of the
deposltors withdraw for boarding. II
would suddenly take out of the banks
one-half of their cash, and when the
banks become frightened there is a
panic in the land. which tremendous
ly disturbances every line of business,
paralyzes commerce, and the pro-
ductive energies of the nation.
To prevent panic and establish tran
guilty in financial affairs and to in
sure stability in commerce and bust
ness, the bank guaranty law of Okla
homa perfected should be adopted
by every state in the union and by
the national banking system, so that
every depositor would have the safe
guard of a bank behind his deposit.
SO that he would have the assurance
| that if any banker or bank went
wrong his deposit would be inn
mediately paid nevertheless.
There are hundreds of millions OF
dollars not now deposited in any
bank that would come from hiding
under this system. 1t would mean
thousands of millions of increased
capital to the banking system to es-
tablish this method, because it must
be remembered that every dollar in
cash measures ten dollars in depos-
it's and credits as is proved by the his
tory exhibited in the comptroller's re-
ports
If the amount paid by the national
banks of the country as taxed on cir
culation were converted into a guar
anty fund until 1t should amount to
| fifty millions remaining invested in
two per cent. bonds, such guarantee
fund would cost the banks nothing
would give them security and peace
and greatly strengthen the financial
and commercial stability of the ma
tlon.
The real opposition to this system
comes from the ignorant officers OF
the big banks of the big cities, who
stupidity believe that the guaranteed
safety of the depostor in n small
bank would diminish the deposits in
the big banks by increasing the de-
posits in the small banks; the big
banks forgetting that a large part
of their deposits is the surplus fund
of the small banks.
| The opinion of the big banks has
been reflected over the treasury de-
partment. The former United Stat
| es treasurer, Mr.. Treat. and former
| United States comptroller of the cur
repcy, Mr.. Ridgeley and others hav-
ing disproved and severely criticised
the oklahoma system; the attorney
| general held that the national banks
of Oklahoma taking advantage of the
Oklahoma system which the Oklaho-
ma law offered the national banks.
1T was amusing to see Mr. Ridgeley.
as soon as he ceased TO be compt rol
Ter of the currency organize a conn.
pany for the guaranteeing of bank
deposits for the national banks, art
fully contrived under the guarantee
of their assets( to the extent of pro-
tecting depositors) which the attor.
ney general said was lawful, In 9TH
! or words, the former comptroller OF
the currency, Mr. Ridgeley, under
took to do indirectly what the Okla
homa law did directly.