Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-03-21
TABANKING
I'm OPPOSE
GUARANTEE
Democratic Plan to
Z Scheme to National
Institutions.

..~. at the head of national
in Atlanta do not take kindly to
4 .f +ra Democratic administra-
father a law guaranteeing bank
rofr- -o oklahoma as an in
,r what effect a guarantee sys-
and while they are unwilling
ina detailed discussion of the
ZION until it is more fully out
from Washington, they are, to say
ST gnauthusiastic.
,r p NcCord. vice president OF
bird National bank, headed the
5afrsr "a guarantee system when
-,n,sal was before the Georgia
,rra five or six years ago. Mr.
rs i. the most outspoken of the
bankers against a guarantee
s.ma.v means taxing brains. con-
..sm rrudence, skill and honesty
. incompetence. wildness, rash
rayaartanre and dishonesty" says
Nlc5rI
makes Atlanta banks responsible
rf.tiuns IN Maine, and San Fran
RESPONSIBLE for conditions in At
Il is unfair to ask that, or to
strong. conservative institution
corner % stand responsible for
mites or a crowd on another street,
whom ho can exercise no surveil-
Failed in New York.
\. thing is not new New York
Instituted a state guarantee plan
,s by 1881. nearly every state
IN the commonwealth had sus-
l., raymcnt The state had to is
,..m0Uu0 bonds to pay losses, and
3s not until 1885 that these bonds
redeemed
low. look at this" said Mr.. Nc
as b.. picked up the Blue Book Of
Is and turned to oklahoma. Okla
a has rhe guarantee system, but
Mccord pointed out that in every
nee where there are both state and
Dral banks in an oklahoma city,
RATIONAL banks, unguaranteed, have
,rap0nderance Of deposits, in many
5 win less capital.
hat shows what the public thinks
f." said Mr.. McCOrd. AT first the
autee law bade fair to put the ma
Il banks out Of business, but the
has turned. and now the state
IS are suffering, and many of them
taken out national charters"
bert F. Maddox, vice president Of
American National, said:
have not heard a full discussion of
Democratic plan as now before the
ressional committee. However,
rience has shown that wherever
guarantee systems have been tried
have proved very unsatisfactory"
ottley Waits Silently.
hn k Ottley, vice president of the
III National bank, said:
would not care to express myself
the plan is fully outlined. If the
Is no better than some that have
tried 7 would condemn It heartily.
perhaps this administration. which
believe, unusually able. will sue
In drafting a scheme free from
features. | want to wait
Pc giving my views"
~. Forbes, the noted New York
Pr on financial and commercial top
has his eye on the situation. and
iTes that the Democrats, headed by
n are determined to push a de-
guarantee plan for national banks
lga congress. He writes:
no government will not itself guar
E deposits. but will compel the ma
" banks to shoulder the burden.
gmoeFatic leaders, l am told, have
osl the various factions at Wash
III and have found that the proposal
ne supported. by the extreme radi-
as wei. as by the regulars in
TESS.
he Intention is to carry through
MEASURE at all costs.
eanks Must Bear Burden.
already stated, the Federal gov
sul VIII not undertake payment Of
- out viii throw the whole respon-
N upon the combined banks. For
.''SlTatiye purposes the country
.i9'aoIy he divided into number
mes or bank ssociations.
"e national banks will fight the
"'.' all their might. but that the
''','aUon has irrevocably made up
'.'' 10 place this enormously i'm
VI, Innovation upon the statute
; is conceded.
VII inside banking sources l re-
ny inns statement:
III proposed legislation to guar
national bank deposits win in
.'''..L.E he jammed through. Tho
.' almost unthinkabIe. but that
oo' alter the situation.
"a. .a0teeing deposits places a pre-
upon reckless banking, for de-
VIII go to those who offer the
~. rates Of interest and who. in
a-sn'a must use the funds thus
as- IN a risky way in order to
p'oAt The outlook is most dis
-1.esf return of the comptroller
,, -..-ency showing conditions on
gives the number of ma
'aA5s as 1925. Individual de-
a1srs gated $3.50, 100000 and
-> All. 1880 OOO "