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The Commoner.
3
OCTOBER 30, 1908
THE MOST IMPORTANT BUSINESS PROPOSITION EVER
INVOLVED IN A POLITICAL CAMPAIGN
The following address has been, issued from
Chicago by the bankers' committee:
POSTAL SAVINGS BANKS VS. GUARANTY OF
DEPOSITS -THIS IS THE ISSUE
Ono or tho other Is going to win in this
election. This is no matter of theory, it, is a
fact, according to the platforms of tho respective
parties. Tho republican, party pledges a law pro
viding for postal savings banks; tho democratic
platform pledges the party to the enactment of
a law providing for the guaranty of deposits.
Tho republican platform says: "We favor
the establishment of a postal savings,, bank sys
tem for tho convenience of the people and the
encouragement of thrift."
The democratic platform says: "We pledge
ourselves to legislation, under which the national
banks shall be required to establish a guarantee
fund for the prompt payment of the depositors
of any Insolvent national bank, under an equit
able system which shall be available to all state
banking institutions wishing to use it.
"Wo favor a postal savings bank if tho
guaranteed bank can not be secured, and- that
it be constituted so as to keep the deposited
money in the communities where it is estab
lished. But we condemn the policy of the re
publican party in providing postal savings banks
under a plan of conduct by Which they will ag
gregate tho deposits of the rural communities
and re-deposit the same while under government
charge in the banks of Wall treet, thus depleting
the circulating medium of the producing re
gions and unjustly favoring tho speculative
markets."
So tho Country Faces tho Issuo
Every vote will count for one or tho othei.
The democratic platform endorses the postal
savings bank, provided we can not secure a law
providing for guaranty of deposits; but it stands
for the guaranty of deposits as against the postal
savings bank.
ARGU1IENTS
Mr. Taft is in favor of the postal savings
bank and opposed to tho guaranteeing of de
posits. He says: "The democratic party an
nounces its adhesion to this plan, and only
recommends the tried system of postal savings
banks is an alternative If the new experimental
panacea is not available. The republican party
prefers the postal savings banks as one tried,
safe and known to be effective, and as reaching
many more people now without banking facili
ties than the now system proposed." From
speech of acceptance of William H. Taft, July
28, 1908. , ,
Mr. Bryan stands for guaranty of deposits.
He says: "Then, too, the banks must remem
ber that tho question is not merely whether
depositors shall be made secure, but whether
the security shall be given by the banks them
selves or by tho government through a postal
.savings bank.
"The refusal of the banks to permit tho
passage of a' law granting security to depositors
Is responsible for the growth of the sentiment
in favor of the government savings bank, and
the sentlmentf will continue to grow unless something-
is done to satisfy the demandsof the peo
ple upon this subject.
"The republican party proposes the estab
lishment of a postal savings bank system; the
democratic party prefers the guaranteed bank
because it is better for the depositor and better
for the banker; it gives tho depositor the se
curity which he needs and yet leaves the bank
ing business in the hands of the banks. But
. the democratic platform declares for a postal
savings bank if the guaranteed bank can not be
secured, and in November more than ninety per
cent of the voters will by their ballots demand
either the guaranteed bank or the postal sav
ings bank. Can the financiers prevent the carry
ing out of this demand?
"Thq banker must decide, therefore, whether,
he will favor a postal savings bank which, in
the absence of the guaranteed bank, will grow
until it absorbs the banking business, or pre
serve the present system of banking by giving
to the people, through a guaranty law, the pro
tection which they must otherwise find in a
government bank.
"The democratic plan, therefore, contem
plates a less radical change than the republican
plan. Tnbis notification speech Mr. Taft charged
the democrats with being socialistic in some of
their remedies. The charge was not well found
ed, but I might reply by charging him with nd
vocnting an unnecessary extension of tho gov
ernment's sphere of activity in tho establish
ment of tho postal savings bank, when the guar
anteed bank would answer tho samo purposo
without any considerable increase in the num
ber of government employes. T would rather see
tho banks attend to the bonking business thnn
to have it transferred to tho government, and
because I prefer to have tho banking business
done by the banks rather than by tho govern
ment T urge tho guaranty of deposits an tho
easiest solution of our difficulties." From Mr.
Bryan's speech delivered at Topcka, Kan., Aug
ust 27. 1908.
Bankers must make a choice, whether tho
money of the community Is to be deposited In
tho postnfllee. or whether it shall'be deposited in
their own banks.
Depositors must make a1 choice, whether
they want to have their money deposited in tho ,.
postofllcc at 2 or 2 per cent Interest, or
whether it shall bo deposited In a bank which Is
as sound nn tho Urilted States treasury- at the
usual rates of interest.
Merchants, manufacturers and jobbers must
make a choice whether tho money of tho com
munity which thev need In their buslncps shall
be deposited In a postal savings bnnk with head
quarters at Wnshincrton, or whether It shall ho
retained in the bonks of tho community, for
the use of the community.
All the people must decide whether tho
banking business shall be done bv tho banks
safely guaranteed, or by the government.
The object of tho ballot Is not onlv to ex
press a preference as to a candidate, but more
particularly to express approval or disapproval,
of menmires proposed bv the respective parties.
Every vote cast for Taft is for a postal
savinrs hank. " ,
Every vote cast for Bryan is for a well
guarded cruaronty of deposit law instead of a
postal savings bank.
Which Is In the interest of tho bankw?
Which Is In the interest of tho depositor?
Which Ir In the Interest of the community?
TIFE BANKERS' COMMITTEE
J. H. Albert, Presldont Capital National
Bank. Falem. Oregon.
Henrv H. Bishop, Director First National
Bank. Bridgeport, Connecticut.
Eusrene Bln'se, Cashier American National
Bank. Burtlesvllle. Oklahoma.
H. S Buffer, Vice President Iowa National
Bank. Des Moines, Towa.
.Toslah Carpenter Preslnent Second National
Bank.' Manchester. New Hampshire.
A. G. Campbell, President First Natchez
Bank. Natchez. Mississippi.
S. T. Ontlin. President Rockvllle National
Bank. "Roekvlllo Tndlana.
M. R. Collins. President Douglas National
Bank. Douglas. Wvnmlng.
D. M Prumheller, Vice President Trad,ers
National Bank. Spokane. Washington.
Edward Echols. President National Valley
Bank. Staunton, Vlreinia.
Charles E. Floete. President Armour State
Bank, Armour, South Dakota.
Jopoph B. Grant, President Holston Na
tional Tnnk, Knoxvllle. Tennessee.
Frank Golden, President Nyo & Ormsby
Companv Bank. Reno, Nevada.
Henry B. Gray, President Peoples Savings
Bfnk and Trust' Company, Birmingham,
Alabama.
P. L. Hall. President Central National
Bank. Lincoln. Nebraska.
WUHnm Hasson. President First National
Bank. Oil City. Pennsylvania. ,
Charles H Horton. President Producers
Savlnes Rank.-Woonsocket, Rhode Tsland. ,
H. W. Jackson, Cashier Commercial Na
tional Bank, Raleigh, North Carolina, and Pres
ident of the North Carolina Bankers' Asso
ciation. W. M. Kavanaueh, President Southern
Trust Company, Tattle Rock. Arkansas.
Weston Lewis, President Maine Trust &
Banking Companv. Gardiner, Maine.
Robert F. Maddox. Vice President Ameri
can National Bank, Atlanta, Georgia.
C. W. Melcher, President Peoples National
Rank. Barre, Vermont. , .
W. E. Miles President Union National,
Bank, Fresno, California.
W. II. Milton, Vlco President First National
Bank, Mariaiina, Florida.
E. G. S. Miller, President Gorman-Amorl-can
Bank, Buffalo, N. Y.
Michaol Murphy, President Farmers & Mer
chants Bank, Johnstown, North Dakota.
CIiarloH McCulloch, Presldont Hamilton Na
tional Bank, Ft. Wayho, Indiana.
Isadoro Newman, President I. Newman &
Sons, Bankers, New Orleans, Louisiana, and
Now York.
G. u Ramsey, President Union Bank &
Trust Company, Helena, Montana.
J. S. Rico, Presldont Union Bank & Trust
Company, Houston, Texas.
J. C. Rice, President Commercial Bank,
Caldwell, Idaho.
Thornton Rollins, President Maryland. Na
tional Bank, Baltimore, Maryland.
H. L. Shirley, Vice Presldont First National
Bank, Breckonridgc, Minn.
William II. Swift, Director Union Nationnl
Bank, Wilmington, Delaware,
Moses Thatcher, President Thatcher Bros,
Banking Company, Logan, Utah.
Joseph Thatcher, President Denver National
Bank, Denver, Colorado.
Campbell Wells, Cashier WolJs Dunking
Company, Piatt City, Missouri.
J. C. Uttorback, Cashier City National Bank,
Paducah, Kentucky.
Robert J. Whalen, President Citizens Com
mercial Savings Bank, Hint, Michigan.
L. O. Wh knell. President City National
Bank, East St. Louis, 111.
0 .. FAILURES SINCE 1603
0 . Tho Lincoln (Neb.) Journal, in its
Issue of October 18, prints In response .0
to a request "Tho amounts of comtner-
cial failures in tho United States for
several years back."
Tho Journal prints the list from 1803
as follows: -
0 Year. No. Liabilities. 0
1803 495 $ 7,899,9000
18G4 520 8,579,000 0
0 1805 530 17,025,000
18GC 1,505 53,783,000
18C7 2,780 90,000,000
1808 2,008 03,094,000 0
0 1809 2,799 75,054,054
1870 3,5,40 88,242,000
" 1871 f. 2,915 85,252,000
1872 :.. 4,009 121,050,000
1873 , 5,183 228,499,900
1874 5,830 155,239,000
1875 7,740 201,000,000 0
1870 9,092 191,lx,000 0
1877 8,782 190,009,930
1878 10,478 234,383,132
0 1879 G.C58 98,149,053
1880 . . 4,735 05,752,000 0
0' 1881 5,582 ' 81,155,932 0
0 1882 0,738 101,547,504 0
0 1883 9,184 172,874,172
1884 10,908 220,343,227 0
0 1885 10,037 124,220,321
1880 9,834 114,044,119
1887 9,034 107,500,944 0
1888 10.079 123,829,973
0 1889 10;882 148,784,337 0
0 1890 ,.10,907 189,850,904
0 1891 12,273 189.808,033
' 1892 ...10,344 114,044,107 0
1893 15,242 340,779,889 0"
1894 13.885 172,992.856
1895 13,197 173,190,000 0
1890 15,088 226,096,834
1897. 13,351 154,332.071 0
1898 12,186 130,062,899
0 1899 9,337 90,879,889
1900 10,774 138,495,673
1901... 11,002 113.092,376 0
.1902 11,015 117,476,769
0 1903 12,009 155,444.185
1904 12.199 144,202,311
0 1905.,. 11,520 102.G76.172 0
1906 10,682 119,201,515 0
0 1907 11,725 630,710,000
0 0
,0