Evening star., 1932-10-20

pose any method which is actually sug-
gested in order to carry that policy into
effect.
Proposals "Meaningless."
Furthermore, say that having thus
cared for the needs Of the small depoS.-
tors by the postal savings banks, you
are delighted to consider any plan for
protecting the large depositors, who are
the only ones that will be materially
benefited by Mr.. Bryan's proposals. but
point out that these proposals In their
present shape are absolutely meaning
less, because they are impracticable un-
less there is a complete change in our
banking system. It is mere wind to
talk Of a system Of guaranteeing de-
posits in national banks which would
also be available to all State banking
institutions. Ask what is meant by this.
It is either utterly meaningless, or else
Mr. Bryan intends that all the State
banking institutions shall be put under
national control. which Is step in
centralization of an inadvisable kind
and going much further than any one
had dreamed of suggesting on our side.
Point out further that exactly as a
Government guaranty could not be
given unless the Government possessed
absolute and complete control over the
business and practically went into the
business itself, so it Is impossible to
make the national banks establish on a
large scale and in permanent form this
national guaranty fund without giving
to the association of banks much more
control over the individual banks than
is now possible; that is, the responsible
banks must be permitted to establish
end enforce regulations of a drastic
kind which will prevent the wildcat
banks coming in at all, or else they
would find themselves wholly unable to
go into the establishment of a guaranty
fund
In other words, there must be a
radical change in our Government sys-
tenn as regards banks; a far closer
supervision and control over each bank,
and great extension of the power of
the safe banks over the unsafe banks,
before any scheme as that which Mr..
Bryan proposes is debatable
Puzzled Over Slashing Answer.
"As you know, I felt and, altho
securing of a guaranty for depoSitors
by the action of the Government, or
by the action of the banks, was some
thing that ought ultimately to come,
and so I am little puzzled how to
furnish you q complete and slashing
answer to Bryan's proposal But it is
foolish and meaningless proposal as
he has made it, for he and his followers
have not been willing to look ahead
and face all the consequences of the
change and I believe you can riddle
his proposals. either along the lines in
dictated above or along others.
III there are some of these matters
that you do not feel able to develop
in ~ ch n
speech of acceptance, should not
touch upon them at all beyond saying
that you will discuss them in your
letter of acceptance later. I suppose
(for your sins) you have copies Of my
speech and letter of acceptance before
you You will notice that l made my
speech comparatively short. but maze
it as aggressive as possible, and that
the more elaborate discussion I re-
served for my letter.
Il am afraid I have not been very
helpful, but this is about all 1 am able
to suggest at the moment. Ever yours,
THEODORE ROOSEVELT.
II believe you will be elected If we
can keep things as they are; SO be very
careful to say nothing, not one SEN
tence, that can be misconstrued-that
can give handle for effective attacks.
nave always Ildu " chcIC IClScF ~ yliA-
eyed care over my own utterances."
II
Footnote: Mr.. Taft had written
President Roosevelt that he was trou-
bled by the Democratic plank demand
ing guaranty of bank deposits. Mr.
Taft said he believed the plan wrong
in principle, but that he would feel
safer not to take stand until he had
talked with party leaders. He said he
was not sure how or whether to answer
that and several other new ideas ad-
voca ted by William Jennings Bryan.
Copyright. 1892, by North American News
paper Alliance, Inc.)