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NOVEMBER 15, 1907
The Commoner.
3
w -wjtrnqiQIifrimiitirvifr. -tots yfjems
clal system send to the savings banks of. Europe
money that ought to be deposited in the banks
here. A postal savings bank will keep the
money at home. John Wanamaker, a former
postmaster general and a business man of largo
experience, is quoted as placing the hoarded
money at a very large sum the larger the sum,
the more the financial situation will bo relieved
by its deposit in banks.
But the postal savings bank as proposed
will limit deposits, it is said, to two hundred and
fifty dollars a year for one person. These banks
will do a great deal of good, but they will not
entirely relieve the situation. Our state and
national banks should be made so good that no
one will bo afraid to deposit with them, and
what is even more important, the banks should
be made so secure that no one having a deposit
will bo tempted to withdraw itduring a finan
cial disturbance. How can this security be
brought about?
A guaranty fund raised by a tax upon de
posits and held for the protection of the de
positors of any insolvent bank would give assur
ance to depositors. Panics always commence
with a run upon one or a few banks which are
brought under suspicion. If it were known
that the depositors in such banks were sure of
receiving their money, there would be no run,
or if there was a run, the payment of depositors
In full would relieve the strain and protect other
banks. We ought to have such a guaranty fund,;
in the nation and In each state. Our national
banks should bo protected by such a fund, and
this fund can be provided for by an act of con
gress. As soon as the fund is sufficiently large,
the tax should be suspended, and the very ex
istence of the fund would tend to lessen the
emergencies that might call for it, It would
reaHy cost the banks but little to provide the
security which such a fund would furnish, and
it is certain that the interest drawn upon the
money brought from hiding would far more than
compensate for the slight tax.
Each state should provide for such a fund
for the protection of its state banks, and until
national banks are protected by federal legisla
tion, it would bo well to permit the national
banks of any state to share in the raising of'a
giiaranty fund and in the protection which it
would afford. When this subject was brought
up in congress several years ago, an objection
was made to it on the ground that the large
banks would have no advantage over the little
ones if all were secure, but certainly this objec
tion can not have weight with depositors or with
members of congress who desire to guard the
interests of depositors, and at this time when
the big banks have contributed so largely to the
present stringency, that argument could not
have any weight.
' When it was attempted to secure such a
fund by a legislative act in the state of Nebraska,
the objection was made that it would injure
national banks to have state banks made more
secure by a guaranty fund, but if the national
banks are permitted to share in the expense
and benefits of such a fund, they could not rea
sonably object to it.
One of the lessons to be learned from the
present financial crisis and every evil ought to
be turned to good account is that -additional
security should be given to depositors, and The
Commoner begs leave to submit to its readers
throughout the country the plan above pro
posed for the securing of the depositors in both
national and state banks. Where state legisla
tures are in session, it might be well to urge
state relief at once, and the subject ought to
be brought before congress upon its convening
in December.
oooo
REPUBLICANS PLEASE EXPLAIN!
The democrats, may be pardoned if they
relieve the somberness of the present financial
situation by a few jokes at the expense of the
republican leaders. They have been told so
often by the curbstone republican politicians
that panics only come when the democrats are
in power that republican administrations al
ways Insure good times that they must be al
lowed to smile a little at tho very clear and
unanswerable proof of the inability of the re
publican leaders to insure against a panic. Here
we arein the full enjoyment of a high tariff
which taxes the whole country for the benefit of
a few manufacturers, and yet we are not happy.
We have the gold standard, which we were told
was a panacea and sure preventive for all
kinds of financial disturbances, and yet we are
disturbed. We have the republicans -in power
in the nation and in a majority of the states,
and yot business Is tlod up. Wo woro told that
confidence was all that was necessary and that
republican victories always gavo confidence, and
hero wo are with our confidence disturbed. What
does it taean? Can tho republican party bo
fallible aftor all? Is it possible that republican
leaders may mako mistakes? Can it bo that
republican times are not always good times?
The republicans have claimed credit for sun-'
shine and for shower, for favorablo seasons and
for bountiful crops. Upon Whom will they throw
the responsibility now if farmers have to haul
their wheat back home because no one was will
ing to takejjt. In one town tho domocrats re
called tho cartwheel dollars that some of tho
local financiers used for an argument against
silver In 1896, and begged tho privilege of bor
rowing those dollars in tho absence of ordinary
currency.
Democrats can do their duty as citizens by
counselling courage and pationce and by sug
gesting remedies that will furnish protection for
the future, and yet, they can onjoy tho fact that
tho present panic has exploded ono of tho most
potent arguments that tho republicans have over
employed, namely that a republican adminis
tration insures good times and that a demo
cratic administration Is necessarily a breeder of
panics. The argument was not only contradict
ed by history but was so absurd that It ought not
to have deceived anyone, but it has deceived
many. Exit this choice bit of buncombe that
has done sorvico in so many campaigns!
OOOO
BE PATIENT, DEPOSITORS!
In other editorials The Commoner has
pointed out certain remedies that ought to bo
invoked for the relieving of tho present panic
and the protection 'of tho public for tho future,
but it begs to urgo patience and confidence upon
its readers. Tho banks are, as a rule, perfectly
sound. They are not loaded up with bad paper.
Examination will show that prices havo been
rising and that men are better able to pay their
debts now than they were ten or oven five years
ago, but the depositors can precipitate a panic
if they are unreasonable enough to do so. Tho
withdrawal of a few dollars a day by each de
positor if he deposits none, will soon cripple
the strongest Institution, whilo an agreement
among' the depositors to exercise a little more
faith, will soon relieve the situation. Whilo
the local banks may find it impossible to with
draw the deposits which they havo made in tho
castorn banks, thoso doposlta will ultimately b
paid, and thoro is practically no danger of loss
to tho various communities unlaw depositors
aro foolish enough to oxpoct tho iraposaiblo.
When a depositor puts his monoy Into a bank,
ho knows that his nbllity to withrdaw It on de
mand depends ontiroly upon tho probability (hat
but fow will want to withdraw tho monoy at ono
timo. Ho has no right to expect, thoroforo,
that ho can call for his monoy at onco If all
tho other depositors do tho same thing still lens
should ho oxpect it if his timidity makes
others timid. This is a time whon depositors
should recognize tho sorvico of tho bank to tho
community for tho bank would not exist but
for tho local demand for it and tho depositor
Bhould holp to protect tho community by giving
such support as is within his powor. Tho de
positor who thinks only of himsolf at a timo
llko this is as much to bo criticised as tho citi
zen who, thinking only of himsolf in timo' of
war, refuses to bear any of tho risks or dangers
necessary for his country's protection.'
OOOO
CAN IT BE?
The Washington correspondent for tho St.
LouIb Globe-Democrat (rep.) says: "Mr.
Charles S. Mellon, president of tho Now York,
Now Haven and Hartford railroad, today visited
tho Whito House, and In effect served notico
upon the president that ho wanted to knpw
whether the railroad of which ho is tho hoad
was to bo prosecuted under tho Sherman anti
trust law or not."
This correspondent adds: "While thoy woro
together this morning thoro was discussion of
the existing financial condition In the country,
and a much better understanding as to tho atti
tude of the president was reachod by Mr. Mellon
and will undoubtedly bo rollectcd by him to
his associates upon his return to Now England."
Can it bo possible that the railroad mag
nates have really frightened Mr. Roosevelt?
OOOO
SAVED!
In the various "country saving" confer
ences hold by J. Plerpont Morgan and other
financiers It was arranged that the nleal trust
should gobble up the Tennessee Coal and Iron
company. And now Pittsburg dispatches an
nounce that steel rails which sold for $28 a
ton will be advanced to $31 a ton. Is tho steel
trust ono of the "good trusts?"
Wanted One Million Workers
"The Million Army." Do you want to join?
An army of one million working for tho triumph
of democratic principles that is the army and
that is the campaigning that is needed to assure
democratic victory In 1908. Tho Commoner In
vites the attention of its readers to this "Army
of a Million" plan. A campaign of organization
and education will bo waged by Tho Commoner
from now until tho polls close on the night of
election day of 1908, and in this campaign Tho
Commoner needs the assistance of one million
earnest workers.
In order that voters may be aided in keep-
ONE MILLION MEMBERSHIP CERTIFICATE
; The Commoner Army for 1 908
' .- Headquarters Lincoln, Neb. '
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I hereby enlist in Tho Commoner Army and pledge my assist
ance In bringing success to Democratic arms.
Enclose 60c to cover the expense of sending The Commoner
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ceived at The Commoner office; and they will be returned at the
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requested.
ing in touch with the progress of tho campaign
Tho Commoner will bo sent until election day
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and send to Tho Commoner tho coupon .below,
accompanied by sixty cents.
Will you bo ono of the million? And will
you become a recruiting officer, trying to enlist
others in this army of a million workers who
will make a concerted effort to bring about a
victory for democratic principles? Political vic
tories, like victories upon the battle field, aro
not the result of chance they are the result of
organization, of planning, of equipment and of
concerted action.
With the closing
of the state campaigns
or lyuv uio pre
liminary work of tho
national campaign of
1908 began. A famous
evangelist has said
that church members
are divided into threo
classes workers,
shirkers and jerkers.
We want a million of
tho first class work
ers to enlist in this
army and help The
Commoner push tho
work of organization
and preparation. If
you will bo one, pre
vail upon as many
others as you can to
enlist by filling out tho
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sending it to The
Commoner with sixty
cents for subscription'
to November, 1908.
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