The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1913-03-17
GOVERNOR HAS
.GjUD IDEAS ON
BANKING LAWS
WILL RECOMMEND A GUARANTEE
FUND BE PROVIDED
Declares This Will Give Depos.tors
Every Dollar Deposited Should
Bank Fail.

Tallahassee, Fla, March Il. Fol-
Lowing up the policy recently decided
upon by Governor Park Trammell to
give out for the information OF mem
bers of the Legislature and OF the
public certain OF the recommended
tions which will be contained in his
message to the Legislature next
month, the governor today gave out
for publication the following recon-
mendatiOns which he will make:
Fund to Guarantee Bank Deposltors.
THE primary purposes for the es-
tablishmcnt of banks, SO far as the
Mublic is concerned are: First, that
the public shall have a safe place to
deposit their money; and, second,
those those who need it may cOnven-
iemtly obtain funds upon proper &C.
Cu-it, after the money shall nave
beet gathered together by the bank
ins corporations.
THE ideal system OF banking will
guarantee to depOsitOrs the absolu.e
certainty Of the return Of every dol
lar deposited, and this will insure
the greatest possible volume OF loan
able funds in banks for the needs OF
business. The State and natloh
should see to it that every safeguard
shall be provided for the security Of
the dcpositor. since they permit and
authorize the receiving of deposits
under sanction Of the law.
FLORIDA has a most excellent anu
substantial lot OF banks, and the fall
ures have been comparatively lew;
Yet there is that weakness existing
in our banking system which does
not make the depositOr absolutely
safe. At the critical moment in our
financial and industrial affairs, when
il is most necessary that he be Sc
cured against the loss OF his deposit,
the dcposi,ors only guarantee is the
ability Of the hank to pull through
the financial. and industrial depres-
sion. Should not a deposition. if it,
can reasonably be done be made safe
AGAINST loss when the financial dis
tress comes? Unquestionably no
should; and | regard il the duty OF
the state and the nation to enact
laws which will make him secure. A
| failure to do so. in my opinion, Is an
! in.Ncnsablc neglect To protect the
citizen in his rights.
That dcposiiors may be secure.
that bank failures may become mini-
mized, that the greatest cause Tor
producing panics may be materially
reduced, believe measure proVld-
ing for and requiring the banks To
maintain bank guarantee fund
should be enacted, and ! SO recon-
mend. The guarantee fund system
has been tried out for a reasonaplH
time in a few of the States. and am
informed that it has proven entirely
satisfactory to depositOrs and has not
worked anv hardships on the banks.
The stock in trade of the bank is
the deposits 4 greater part or the
earninrs of banks come from the in-
terost upon the money oi dcpositors
vi ith is loaned The returns upon
/ bank investments as It rule range
/ from | TO 80 per cent Most bank
stock sells above par. From the pat
ronage and business arising from the
| funds of the depositors the bank il.
one of our most profitable business
| institutions. With an absolute guar
anty that every dollar on deposit IL
safe, | believe the bank would be
| even more prosperous as n money
making institution; hut if it would
not then should We leave the deposi-
I tor insecure in order that the bank
be relieved of the small payments
necessary for the establishment OF
the guarantee flnd. or should every
dollar in the hank be made safe, al
though the hanks profits would he
slightly roiurod thereby
cone of fhe greatest causes OF
panics is lax failures The princi-
pal cause ~ the failure Of banks is
the lack + ronfidence in some of our
banks y r talk of hard times.
though oftan fanciful, begins. With
implicit 'nfidence in our banks at
all tins and under all conditions
the pauic would be much less prob
able. if not entirely eliminated.
"The paople of the nation are be-
! Continued on page 81