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