Evening star. [volume] (Washington, D.C.) 1854-1972, 1913-03-21
CURRENCY PLANS
WAIT ON WILSON
CONTINUED from First Page.)

(COntlnueu ITOIQ- FlTSL EdSt-J
called together by the opening of the
special session. He indicated that hear
ings upon the currency question would
then be held. He said that he could not
at present indicate what line the pro-
posed legislation would take.
Senator Owen was asked II the views
expressed by him in 1908 when the
emergency currency law was passed COW
cred his views today.
Those were my views them said the
senator, smiling, but / am not one OF
those who refuse to change their minds .
Senator Owen declared that the demo-
cratic administration had adopted no pol
lev with regard to the guaranty OF bank
deposits. :.
new administration with whom l have
talked" said Senator Owen. has been to
carefully study the question OF the needs
of the banking system and proceed eau
tiously and carefully to make such
changes as are obviously necessary to
promote the stability and welfare OF our
financial system.
Form of Mutual Insurance.
TN 1908 the democratic party platform
contained provision suggesting the ad-
visibility of the establishment of a guar
anty fund to be contributed by the banks
themselves which is in the nature of a
mutual insurance system. and which does
not involve the government in general
or Wholesale guaranty OF bank deposits,
but merely to safeguard the guaranty
fund.
'If the government had guaranteed the
bank deposits of national banks during
the last twenty years, it practically would
have cost nothing to guarantee these bank
deposits, for the reason that the capital
and surplus of banks that have failed
a u
thoroughly safeguard depositors from ul-
innate loss The advantage of a guaranty
fund Is to make an immediate payment
to depositors instead of keeping them
waiting for three, four five years on
account of the failure of the bank.
1.-The members of the committee on
banking and currency have had no meet
ings, they have not discussed this mat
ter, and what the opinion of the commit
tee OF the Senate or the members Of the
House will be am not informed, and GER
tainly feel not at all prepared to make
any announcement as to what an admin
istration composed OF the Senate and the
House and the executive branch of the
government will find judicious after they
have thoroughly considered this question.
Advocate Of Guaranty Fund.
II have been myself an advocate of a
guaranty fund contributed by the banks
to protect depositors, and incidentally
for the purpose OF protecting the banks
against the fear of their depositors and
as means of avoiding financial panic
There is nothing about the proposal of a
mutual Insurance which should excite any
fear Of producing unstable conditions. for
the very purpose of mutual insurance is
to give stability to the banking system
and to the. commercial life OF the nation
ANY system of mutual insurance, in
my Judgment, might be well made avail
able not only to national banks. but to
state banks or other companies which are
under proper governmental scrutiny and
adequate supervision. l do not know
whether or not the committee will care
70 consider this in the immediate future
| In connection with possible financial leg
| islation."
Representative Glass of Virginia, prob
able chairman OF the House committee
On banking and currency. said today that
he did not regard the mi. matter err as Likely to
.'or ~ financial legislation of any kIAd
denended upon future developments.