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WIULIAM J. BRYAN, EDITOR AND PROPRIETOR
VOL. 7, NO. 46
Lincoln, Nebraska, November 29, 1907
Whole Number 358
CONTENTS
GUARANTEED BANKS
"WORKING TOGETHER"
LABOR ORGANIZATIONS
GOVERNOR HASKELL'S PROMPT
ACTION
PRINCIPLES AND POLICIES'THAT HAVE
STOOD THE. TEST OF TIME
JUSTICE BREWER ATTACKS MR. ROOSE
VELT THE OLD SILVER DOLLAR
COMMONER READERS HARD AT WORK
WASHINGTON LETTER
COMMENT ON CURRENT TOPICS
HOME DEPARTMENT
WHETHER COMMON OR NOT
NEWS OF THE WEEK
893 AND 1907
In his letter to Secretary Cortelyou com
mending the government . issue of bonds Mr.
Roosevelt said: "There is no analogy at all
with the way things were in 1893. On Novem
ber 30 of that year there was in the treasury"
but $161,000,000 in gold. ,On November 14
of this year there was $904,000,000 of gold.
Ten years ago the circulation per capita was
$23.23. It is now $33.23."
Mr. Roosevelt might have added that at
this time when the government is issuing $50,
000,000 in bonds it has something more than
$250,000,000 loaned to the banks.
Mr. Cleveland had but $161,000,000 in
gold and no money to loan to the banks but he
was roundly denounced, for his bond Issue, by
republican papers.
Mr. Roosevelt has $904,000,000 in gold and
$250,000,000 loaned to the banks, yet he makes
a $50,000,000 bond issuj in time of peace and
men who condemned Cleveland applaud Roose
velt. oooo
POOR OLD PA.
The St. Louis Globe-Democrat (rep.) says:
"Pennsylvania's largest democratic vote was
452,264. In 1896, the year of Bryan's first
campaign, it dropped to 422,054. In 1900 it
was but 2,200 larger. The' Parker slump in
1904 was to 335,430. In the same time the
republican vote of thestate increased 300,000."
And about the same time, also, the people
-of Pennsylvania trusted" the republican party to
build a state house and it developed that out
of the $13,000,000 paid by the people of Penn
sylvania for that state house $9,000,000 went
Into the pockets of a lot of political grafters.
Surely Pennsylvania is republican!
Poor old Pennsylvania!
OOOO
- FIGURES
The president says:, "On November 30,
1893, there was in the treasury but $161,000,-
,000 in gold. On November 14 of this year there
was in the treasury $904,000,000 in gold.
Ten years ago the circulation per capita was
$23.23. It is now $33.23." These are not
figures on which a real panic can get a footing.
St. Louis Globe-Democrat (rep.) .. .
.Nor do they, look like figures iippn which
a bond issue In. time of peace shouid get a
footing. , .
THE POINT OF VIEW
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Grover Cleveland in 1893 and Theodore Roosevelt in 1907
I GUARANTEED BANKS
, It is too early to say what the effect of
the new bond issue will be, but the relief
ought to come from other directions. The
plans so far have been intended to furnish gov
ernment money to the banks, whereas the most
important thing now is to restore confidence in
bank depositors, and thus not only prevent with
drawals, but secure deposits. While the banks
are good and while the depositors are not justi
fied in being frightened, some depositors are
unreasonable and their excessive timidity may
embarrass the banks. If the money that is
being hidden and hoarded can bo brought back
into circulation the present stringency will dis
appear at once. It does no good co supply mon
ey from the treasury if an equal or a greater
amoun Is drawn out by depositors.
The administration is prepared, so we are
informed, to recommend a postal savings bank.
While this would doubtless encourage deposits
and while those deposits could in turn bo handed
over to the banks, it does not furnish complete
relief. The plan as presented limits deposits
to $250 for one person for one year, and does
not contemplate the opening of checking ac
counts. The business community therefore can
not use the postal savings bank to any great
extent and besides it would take some time to
inaugurate a postal savings system and secure
the necessary number of employes to make the
plan effective throughout the country. It is
possible for the government to give IMMEDIATE
relief by an act of congress providing
for the guarantee by the government of all de
posits in national hanks, the banks thus guaran
teed -40 agree to reimburse the government for
any losses Incurred, and to make this reimburse
ment In proportion to their deposits. The ad
vantage of this plan is:
First That every depositor In such guar
anteed banks will feel secure.
Second The expense of It will bo paid by
the banks which get the benefit of it and tbig
expense would be small compared with the bene?
fit gained.
Third It can bo put Into effect immediate
ly and thus restore confidence, and enable busi
ness to be resumed.
It is probable that all of the national banks
would be willing to take advantage of this guar
antee, because thp additional security given. to
their depositors would be of great advantage to
the banks. During the past forty years the aver
ago annual loss to depositors has been small (lees
than one-tenth of one per cent on the deposits),
so small that it would be an insignificant tax up
on the $4,000,000,000 or $5,000,000,000 of de
posits. The government would have ample Se
curity in the capital and surplus of the banks
which would voluntarily Join In the plan. As
each bank would become interested in the proper
management of every other guaranteed bank. It
would be easier to secure the legislation neces
sary for the correction of such abuses as may
exist and for the better management of the
banks for Instance, legislation preventing
over-bo rrowihg by directors and officials of the
bank and legislation preventing speculation by
officials. The plan suggested ought to be ac
ceptable to the depositors, all of whom desire
security, and It ought to be acceptable to the
bankers, who will bo well paid by the Increased
deposits for any tax that may be collected from
them to reimburse the government. What ob-
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