The Pensacola journal. (Pensacola, Fla.) 1898-1985, 1914-02-16
ROBT. H. ANDERSON
DISCUSSES SUBJECT
Says Recent Experiences in
Pensacola Have Empha-
sized Need of the Guaran-
ty Law-Cites Oklahoma
Example of It's Successful
Operation.

Robert H Anderson. the well known
young Pensacola attorney has come
very definite ideas on the subject OF
the guaranty of bank deposits. and to
{, Journal. representative he talked
freely on the matter.
Banks exist for the accommodation
of the public and not for the control
Of business" said Mr.. Anderson. That
at least is what the Democratic plat
form OF 1912 said and I quite agree
with the proposition.
1.-THE Democratic party has tried
faithfully to live up to it," continued
Mr.. Anderson, land has I'm a large
measure been successful, In spite OF
the many obstacles that have been
thrown in its way by Big Business.
the pa assage of the currency bill in De-
CentbeI was a signal victory for the
party, but the senate was forced to
surrender the original provision con-
tanned in the bill guaranteeing de-
rosits on account Of the opposition OF
the house to this clause. II is very
probable that sooner or later congress
will pass this much needed legislation
but until it takes such steps the only
safe plan is for the legislatures OF the
several states to pass guaranty deposit
laws for the protection Of their de-
pastors.
PROTECTION OF DEPOSITS.
Now If 1t is true that banks exist
for the accommodation Of the public
then il is also true that the public
ha We ( right TO be assured of the pro-
tecti"n OF It's deposits. For money Is
received on deposit by a bank on the
theory that il will be returned to the
depositm on demand, and surely the
average depositor has no other motive
for depositing money with a bank
than teIng able to get 1t out again
when he wants 1t. IL he cannot get
it out when he wants il, then the theo-
ry of banking is all wrong. and banks
do not exist for the accommodation
OF the public but for some other rea-
son.
"A number of people in Pensa cola
and In Escambia county have won
dered, recently. upon what theory the
anking business is conducted. any
way. Heretofore they always thought
and correctly too. that banking was
conducted for the purpose of allowing
the public to deposit money with the
anks and get it out on application.
But a good many of our citizens have
ut money into some Of our institu-
lions and are not able to get II out And
why? Because the government does
does the state of Florida. If congress
will not pass an act guaranteeing de-
oosits then 1t is proper and necessary
FOR the state Of Florida to do so, and
ne depositors Of some banks. at least,
will be assured that they will be able
% get their money when they want
Il.
1.-THE most efficient, as well as the
simplest, plan to secure depositors Is
o comrel every state bank In Flor
da, and as many national banks as
are to, to subscribe a certain per-
Of their deposits for instance,
per cent. TO a guaranty fund under
he control OF state banking board,
his fund to be used for no other pur-
bose than to pay off the depositors OF
allied banks. Whenever bank fails
he state bank commissioner immedi-
teIy takes charge. The first thing he
Ioes is to draw on the guaranty fund
or a sufficient amount to pay Off
very cent that Is due to the Deposit
RS. He then proceeds to liquidate the
-ffairs Of the bank collecting as much
# the assets as is possible the sunni
% collected are put back into tns
fund If there is not nonry
CONTINUED on Page Three)