The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1913-03-21
READY FOR FIGHT
Have Arguments for Bank
Guaranty Legislation.
Owen and Glass Prepared to
Advance Matter.

Washington March 21.-When time
comes to press for legislation looking
to the guarantee of national bank de-
posts, Senator owen, chairman of the
banking and currency committee of
the senate, and Representative Garter
Glass are fortified with arguments to
convince congress of the soundness of
the proposed plan.
Mr.. Owen called attention to the
= fact that the Democratic platform in
1908 suggested the advisa bility of eS-
tab1ishing a guarantee fund to be con-
tributed by the banks themselves, in
the nature of a mutual insurance sys-
tenn.
eff the government had guaranteed
national bank deposits during the last
20 years" said Senator Owen, 'it prac-
tically would have cost nothing, for tn
reason that the capital and surplus of
banks that have failed have been suf-
ficient as rule to safeguard depoSitors
from ultimate loss.
The advantage of a guaranty is to
make an immediate payment to de-
positors, instead of keeping them wait
ing number of years on account OF the
failure of the bank When the deposit
tor is safeguarded he will not be afraid
and will not make a run on a bank.
In this way commercial as well as fl
nanciaI stability will be assured
Representative Glass, who will be
chairman of the committee in the next
house, said:
Il could not commit myself on this
proposed plan, but there are many
things about it that appeal. That it is
ps Lcticable can hardly be doubted. The
argument against guaranteeing national
bank deposits is that it will be
premium on bad banking. 1t IS hardly
conceivable that bankers, realizing the
responsibility of themselves, their di-
rectors and their stockholders, would
deliberately wreck bank because their
depositors were insured.
II have given this subject some study.
The figures prepared by the comptroller
of the currency show that the total
losses to depoSitors of failed banks
since the enactment of the national
banking law in 1863, compared with the
total of deposits, is only thirty-five
thousandths of 1 per cent, a sum so
as to be almost negligible
Secretary of the Treasury McAdoo
said:
This matter has never been brought
to my attention. 1 have talked about
It to nobody and know nothing what
ever of it,
Comptroller of the Currency Murray
was content to say:
1.-The publication says it is an ad-
measure. If that be true,
it is hardly proper for me to discuss it,
Influence Brought to Bear.
Sensational influence from all Sec
bear upon President Wilson in con-
nection with various patronage schemes
and plans for future policies of the
administration.
Senator Ashurst of Arizona, and Fall
of New Mexico, called to discuss the
Mexican situation. particularly with
reference to the plan along the Dor
der.
The president said he had both these
matters under consideration and would
ask Attorney General McReynolds to
look into the loan matter at once.
Mr.. Simmons of North Carolina con-
ferred with the president concerning
tariff revision and Senator Hughes of
New Jersey brought Senator Hollis
of New Hampshire to the White House
to introduce him to the president. Sen
ators Chamberlain, Lane, Vardaman
and Owen also called at the executive
mansion on Earious matters.
The visit of Senator Smith, of Mary
land, and the call of William Cabell
Bruce brought to light the fact that
the president has interfered in the
Maryland political situation to such a
perturbed for fear the chief execu-
tive is attempting to take a too high
handed manner in backing w. L. Mar
bury for the short term vacancy. The
told his Maryland visitors that
he did not intend to actively intervene
in Maryland, but that he desired Mar
bury selected for the senate.
The president declined two invita-
tions-one to attend the dedication of
the Maine memorial in New York on
Decoration Day; the other to attend
the third annual meeting of the ma
tional drainage committee in ST. Louis
on April 10. The president does not
intend to leave Washington until af- /
ter the close of the special session.
TOJStOi Estate tn Peasants !