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About Medford daily tribune. (Medford, Or.) 1906-1909 | View Entire Issue (Aug. 28, 1908)
MEDFORD DAILY TRIBUNE, MEDFORD, OREGON, FRIDAY, AUOUST 28, lflOS. BRYAN ANSWERS EVERY 'POINT ' RAISED IN CONNECTION WITH THE GUARANTY SYSTEM OF BANKING TOPKKA, Kao., Augu 28, William J. Bryan addressed a targe crowd -last moiling in this ity. lie spoko regard ing the guaranty of bank deposits. Be said in part: Mr. Chairman, Ladies and Gf tie men: Why not make the depositor secure! The United States government requires the deposit of specific security when it entrusts money to a national bunk, although it cau examine the bank nt any time; the state requires security when it deposits money in a bunk; even the county requires security and the city requires security; even the banks require security from the officials who handle money. Why should the depos itor be left to take his chances? Not only is the depositor without pro tectiou, but the security given to na tion, state, county and city lessens his security. They are preferred creditors; they have a mortgage on the gilt-edged assets and the depositor must get nlong as best he can with what remains. Why are the interests of depositors thus neg lected? A bank nsks deposits on the theory that the depositor is sure of the re turn of his money, and the laws ought to make the facts conform to the theory. The depositor, the community . and the banker himself will be benefited by leg-1 is lata on which will give to every, de positor the assurance that that which is committed to the keeping of the bank will be uvailaMe to meet his needs at any time. Such is nut the case today, for while all bunks aro reasonably secure, they are not absolutely so. Experience of Oklahoma. The experience of Oklahoma furnishes conclusive proof that depositors do not feel that their money is safe in unse cured banks. Ou the 17th of December, .1907, the Oklahoma legislature enacted a depositors' guaranty law, which be came oporative February 4th, 10U8. By the provisions of this law, all state banks, and as many national banks ns desire to avail themselves of the law, are taxed ono per cent on their deposits, and the money thus collected is put into a guaranty fund. The bunk ing board is authorized to make addi tional assessments from timo to time to keep the fund up to this amount, and is directed to take possession of any insolvent bank, pay the depositors in full, and reimburse the fund by collect ing the nssets of the failed bank. Five hundred and fifty-five banks, including 54 national banks, had come under the provisions of this law on the 14th of last May, leaving but -25 unsecured banks (all national) in tlio state. State ments are made by the banks in De cember and May. Between these pe riods the Hi'cured banks gained in de posits $4,2:t7,7)5.22, while the unsecur ed banks, all national, showed a do crease in deposits of $l,HH,SO7.S0. A large part of this increase represented money brought from hiding or from without the state, but the decrease in the unsecured banks enn only lie ex plained in one way. A large number of depositors withdrew their money from the unsecured banks, and deposited it in the secured hanks, and this, too, in spite of the fact that in order to pre ven twithdrawats, the unsecured banks, in some instances, offered a higher rate of interest than tho secured banks were permitted to pay; and it must be re membered also that the banks which suffered a loss of deposits were all nn tionnl banks. And to make it certain . that the difference was caused by the guaranty law, the secured national ; banks gained, while the unsecured banks! Inst. While tho deposits were increas-j ing in the guaranteed banks of Okln-. lioma, they were failing in the state ' bonlts and trust companies of Kansas the decrease being $1,153,02(1.27 be tween March 31 and Juno 13. Xo amount of criticism of the timid depositor can change the facts; the people who deposit money want more security than the laws at present give them. They will change banks to get more security, and, if necessary, they will send their money to another stnte. Efforts in the Past. For many ynrs efforts have leen made in congress and in the various states to secure a law guaranteeing deposits, but the influence of the great banking institutions has been sufficient to prevent action. Lust fall, however, when the banks by a concerted action suspended payments on checks, the de positors were everywhere brought to n realization of the fact that their de posits are in fact loans, payable on demanad under ordinary circumstances, but payable at the will of the bank in emergencies. The depositors suffered a considerable loss during tho suspen sion of payments, and they have not forgotten the lesson which they then learned. The democratic party, being more free than the republican party to respond to the needs ot the masses of the people, inserted the following plank in its national platform: "Wc pledge ourselves to legislation by which the national banks shall be required to establish a guaranty fund for the prompt payment of the dejtos itors of any insolvent national bank, under an eqnituble syntem which shall be available to all state banking insti tut ions wishing to use it." This principle has been applied in Oklahoma and the results havn bwn very satisfactory. The average annual lows to depositors in national banks dur ing the last 40 years has been lew than one-tenth of one per cent of the de posits, nnd the loss to the fund in Okla homa under better regulations and re strictions has been almolntely nothing dining the six months in which the law haa .been in operation. Taft's Opposition. The republican platform ia silent on the subject, and the republican candi date-not only does not advocate a com pulsory system, but specifically and emphatically opposes it. : Jiiaolicitude for the state bank will hardly t .impress the country, for he is quite indifferent to states and their reserved rights when he deals with oth er subjects. When congress is in the control of those who want to legislate for the whole people rather thau for the few, it will not bo difficult to frame a law under which state banks can .avail . themselves .of the ladvan. tages of a federal law guaranteeing tho deposits of national banks, just as it was easv in Oklahoma to frame a law which permitted national banks to take adwvautage of the state guaranty sys tem. It will also be easy to enact a federal law which will permit national banks to avail themselves of state oruaj-autv.svBteius until A national sys tem can be secured. Attorney General Bonaparte's riding, whether it correct- Iv internrets the law or not, wouiu uoi bring such consternation as it does if the republican cnndulnto lavorea a law allowing national banks to take advan tage of state systems for the protec tion of depositors, but Mr. Taft's hos tility to all guaranty systems is shown yj tho obection whicL he otters: "The proposition is to tax the honest and prudent banker to inako up for the dishonesty aud imprudence or oiners. No one can foresee tho burden which under this system would be imposed upon tho sound and conservative bank- ersof the country by this obligation to make good tho losses caused by the reckless, speculative and dishonest men who would be enabled to secure deposits under such a system on tho faith of the proposed insurance; as in its pres ent shaps the proposal would remove nil safeguards against recklessness in banking, and tho chief, nnd in the end, probably the only, benefit would accrue to the speculator!! who would be de lighted to enter the banking business when it was certain that he could enjoy any profit that would accrue, while the risk would have to be assumed by his honest and haid-wnrking fellow." He oven pictures dire disaster and declares that "if the proposal were adopted exactly as the democratic plat form suggests, it would bring the whole banking system of the country down in ruin." Answers Republican Candidate. Mr. Taft complains that "no one can foresee the burden which under this system would be imposed upon the sound nnd eonservotive bankers of the country by this obligation to make good the losses caused by the reckless, spec ulative and dishonest men," etc. We have the past to guide us, and we have reason to believe that the loss will be less in the future than in the past, bo cause when banks become mutually ro jpoiiHihlc for each other's deposits the) ill bo sufficiently interested in eacl other to favor better regulations and greater restrictions. What has Mr. Taft done to protect depositors from recklessness and spec illation! While he refuses to protect de positors, he praises the Aldrieh-Vrec land law, which invites speculation and stock jobbing. In declaring that the svstem proposed nv the ileinoeratfi ' ' would remove al safeguards against recklessness in banking," Mr. Taft be ; travs an ignorance of the subject, for the plan does not propose the removal ol any safeguards. In fact, it contem plates stricter regulations of the banks and Oklahoma has already made the banking regulations stricter. The chief cause of bank failures it the making of excessive loans to direc tors or officials of the bank. This h the fruitful cause of disaster and it hap been impossible to secure legislation protecting banks from their own offi cials and directors. Whvt Because there has been no mutual responsibility. When1 all banks become liable for the depos its of each, the stockholders will in sist upon the enactment of a law mak ing it a criminal offenso for a bank official to loan more than the prescrib ed amount to one individual. At present we have a law prohibiting the loaning of more than one-tenth of tlm capital and surplus to one person or corpora tion, but the law is only directory. Of course, the comptroller can suspend a bank if it violates the law, but the law is not enforced, because the en forcement of such a law would throw the punishment upon innocent stock holders and upon the community, since the suspension nf a bank inflicts a great loss upon stockholders and dis turbs the business of tho city or towO in which the bank is locnted. What Is Gained. Hut as a matter of fact, the banks will, ns a rule, gain more from the lav than they will lose by tho tax imposed by the law. The experience of tho Ok lahoma banks shows this. The inter est collected upon the increased de posits will far more than pay the louses occasioned by insolvency. But two banks have failed and the assets have in both rases been sufficient to reim burse the fund. The republican party proposes the e tahliidiment of a postal savings bank svstem; the democratic party prefers t'h guaranteed bank because it is bet ter for the depositor and better for the banker it given the depositor the security which he needs and vet W'ftVM the banking business in the hands of the banks. Hut the democratic platform JUST DRESSED THE STORE WINDOW. WE WILL ENUMERATE EVERY DAY CASH BARGAINS PLACED IN IT. LOOK AT THE DISPLAY YOURSELF. THE ARTICLES IN IT ARE NOT A FEW "SPECIALS" BUT ARTICLES AS WE COME TO. 'THEM, AND ARE A FAIR AVERAGE OF THE CASH, SAVED .BY BUYING ANYTHING OF THIS STORE. THERE IS'A ' REASON WE SELL FOR CASH. "Heinz" Mustard, sold for credit 1p at 20c, now for cash 1UI Maywood Ripe Olives, sold for cred it at 50o and 150, now for cash, IWo Op and Mt Arm and Hammer Soda, sold for wed it for 10c, now for cash kUu Extra choice Hawaiian Pineapples, sold for credit at 33c, now for 9Cf cash "Kingsford's" Corn Starch, 15c or 2 1 1 for 25c for credit, now for cash. . . , 1 1L Spices, sold for credit at 15c and 10c, now for cash, 10c and "Webfoot" Hard Wheat Flour, sold for $1.30 a sack, now for tfl Afi cash .l.tU M. J. 15. Coffee, sold for credit in Qft Hi. cans at 1, now for cash yUt "Riverside" Gloss Starch, for cred- Q it 10c or H for 25c, now for cash 01 Credit, bought, four bars of Sunny Mon day Soap, 6 for 25, now for cash, 5 bars of Sunnv Mondav and one of Bo rax, for.' .' Jl. "Continental" Corn Starch, for credit, 10c or 3 for 25c, now for ? cash , 'I' Welch's Grape Juice, for credit, 60c and 35c, now for cash, 50c and . . . J"v "Diamond A 7 Canned Tomatoes, sold for credit for 15c or 2 for 25c, now for 1 Ar cash Lea & Perrin's Worcestershire Sauce, 35c size tor cash .iOc, bw size now sflf UVV for cash. $1.00 size .85: We Pay Cash for Farm Produce .See the window. The home of true economy Miller 6 Ewbank We Pay 25c a doz. Cash for Eggs declares for "n postal savings bank if the guaranteed bank I'liimot tie se cured, " and in November more tlian 110 per cent of the voters will by their ballots rdemand cither the guaranteed bank or tho postal savings bank. Can the financiers prevent the carrying out of this demand f There is another advnnge which the guaranty of depositors brings to the banks it protects the reserves deposit ed in other banks. During tho panic, last fall tho reserves caused tho most of the trouble. The small banks want ed to withdraw their reserves from the city banks, nnd the big banks in the cities wore not prepared to meet the strain. With deposits guaranteed there would be no runs on local banUs anil no sudden withdrawals of reserves. Democrats Will Do It. I submit that in this effort to make nil banks secure, the de emtio party is the champion of tho farmer, the la boring man, the business man, the pro fessiounl man, and tho champion nt trie banker as well. Xo class is oulsolc t tho bonefits of this law. for it be stows its blessings upon all. When Solomon was invited to hcoose what he would, lie nsked for an under standing heart, that lie might discern, between the good nnd the bad, and he was told that, because he had chosen wisdom rather than riches or lung life, he should have, not only wisdom, but riches and length of days as well. And so when a party determines to seek first that which benefits the common people, it finds that in net ing in the interest of the ciimiiinn people, it nlso promotes the welfare of the smaller classes which rest upon the masses, for when the pro ducers of wealth prosper, their prosper- ity is shared by every element of so- cietv. John Ashpole a leading citizen of Kagle Point, was among his Modfnrtl friends Thursday. W. S. illinium, president of the U. It. V. Railroad company, lias been spend ing a few weeks at Cinnabar, but is on duty again. Don't Bother to Cook It's too hot. Get what you want alret, Iv prepared; we have it. We cater to those who want the best. THE DELICATESSEN C STREET, NTEAR EIGHTH BIJOU THEATRE Friday and Saturday. "A MAGNETIC REMOVAL" Something fine, full of freak performances. " LEA l' YEAR PROPOSALS OF AN OLD S AID" The most laughable subject you have yet seen. "A VENT! ED" A good drama. Song "Somebody's Sweet. neart I Want to He." Admission 10 cents. ASHLAND COMMERCIAL COLLEGE Ashland, Oregon. Thorough, practical training In conunerclal, shorthand and English branches. Our high class training is proverbial, our facilities for placing graduates is not surpassed, and the sinulliiess of the expense in securing such an educntinn hero is appreciated. i . SPECIAL OFFER FOR 1908O909. All KtiulontH who Hnciirn a nino montliH' Hcholarahip nnd outer at tho beginning of the term, Nt'pteinbor 7th, will ho entitled to tho combined course com more iul, shorthand and KtiHhIi to July 1, 1901. Ten months of export, practical, indi vidmil instruction for $UU)0, Investigate and attend the ASHLAND COMMERCIAL COLLEGE. ANOTHER Man Separated From His Wife! Who Is Responsible? We refer to a man who lives here and keeps his family in Portland because he cannot find a house for them in Medford. This is had for him and bad for Mcdford. The real estate men tell us tlicy cannot supply half the demand for houses. We will furnish the LUMBER, LATH, SHINGLES and CEMENT, if somone will get busy and build a few more houses to rent. Crater Lake Lumber Co, MEDFORD, OREGON The Big Sale Is Drawing to a Close! Many have taken advantage of the bargains we have offered, and supplied themselves with Shoes, Oxfords, Etc. We have a number of pairs of Oxfords, which we will sell at $l-OneDolIar-$I per pair. Other bargains equally as good. You eannot afford to miss this opportunity. Only a few more days . left. Come early, as these goods will go fast. SMITH & MOLONY Oak Park Addition On railroad on the West Side, north of depot grounds and conveniently located for business men seeking home sites close in. These fine lota are offered for sale cheap, on good terms, and the owners are in position to offer building inducements to anyone wishing to make the, right kind erf improvements. Why go out to the . faraway suburbs when such fine residence lots can be obtained at prices ranging from $200 to $350 per Lot situated where an advance in price is assured, and wher the first benefit will be derived from the completion of the railroad to the timber t It pays to figure on such investments in a live town like Medford, and the present prices for these lota will look lik a veritable gift to the buyer in a year or two hence. Fo full particulars apply to the Rogue River Land Comply Exhibit Building THE MEDFORV DAILY TRIBUNE HAS THE BEST NEWS SERVICE IN SOUTHERN OREGON. Wnrt Co. tr Jto tne ponre mut in fit.- - i