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The Commoner
18
VOL. '17, NO. 3
It we estimate tho average number of stock
holders of each hank at sovonty-flvo and that
Is a liberal estimate tho total number of stock
holders would only bo a million and a half, or
one-tenth as many as there are depositors. Tho
stockholder is not compelled to buy stock, while
tho depositor is compelled to uso tho banks, both
for his own sake and for tho sake of tho com
munity, for only by using tho banks can he keep
his monoy a part of tho circulating medium. Tho
guaranty law, therefore, brings the greatest gqod
to tho greatest number, as well as to those who
have the greatest equity upon their slide.
""There is another reason why tho claim of the
depositor is superior to the claim of the stock-N
holder. Tho stockholder has a voice in tho se
lection of the bank offlcials; the depositor has
not. If any ono must lose, therefore, as tne re
sult of bad management, it ought to bo tho
stockholder rather than the depositor. And I
venture to ask, if the bankers will not trust each
other, why should they expect the depositors to
trust tho banks?
And there is still another advantage: By
drawing monoy from hiding and by preventing
runs on banks the guaranteed bank will greatly
lessen tho demand for an emergency currency.
Wo are fortunate, howover, in that wo are not
compelled to choose between justice to tho de
positor and justice to the stockholder, for, as
' has beon shown before, the plan which we pro?
pose, not only does justice to both, but brings
advantage to both. More than that, the plan
which we propose protects the 'banker and
js his only protection against tho establish
ment of a government bank, with indefinite 'en
croachments upon tho banker's business. With
the guaranteed bank established, government
.savings banks would only be needed in the towns
and villages where there were no guaranteed
banks.
,If we had to chose between the interests of
the bank and the interests of tho community, we
would bo compelled to protect the interests" of .
the community flrst; but here, too, wq, are for
tunate, for wo are not driven to this alterna
tive. That which protects the community pro-
' tects the bank also, for when there are several
banks in a community, the failure of one often
caused a run upon the others, and the insolvency
of one bank is such a menace to the solvency of
others that tho solvent banks often join together
and assume the liabilities offche insolvent one
for their own protection. As an illustration of
this, I point to the action of tho Chicago banks
in assuming tho liabilities of the Walsh banks,
at a heavy loss to themselves.
There is another advantage which the guar
anty of depositors brings to the banks it. pro
tects the reserves deposited in other banks.
During tho panic last .fall the reserves caused
the most of the trouble. The small banks
wanted to withdraw their reserves from the city
banks, and the big banks in the cities were not
prepared to meet the 'strain. With deposits
guaranteed, there would be no runs on local
banks and no sudden withdrawal of reserves.
I have selected the capital of the state of
Kansas as the most appropriate place for the
delivery of a speech upon this' subject, because
your neighbor upon tho south has been a pio
neer in tjhis reform. Her plan, as you know, has
been such a signal success that deposits have
been drawn across the line from your state into
Oklahoma. The alarm caused by this invasion
of your banking territory caused your governor
to include in his call for a special session a
recommendation of the passage of a law similar
to that of Oklahoma. ' When the legislature
met, however, the influence of the large banks
was sutfficient to prevent the needed legislation,
and' your state still suffers. The people of Kan
sas have had an object lesson; they kna the
necessity for a law guaranteeing deposits. They
have seen its beneficent results in a sister state;
they have seen fifty-four national banks taking
advantage of 'the state system and reaping a rich
reward. I have made inquiry and find that many
Kansas bankers favor the adoption of a guar
anty system three-fourths of those who have
replied have declared for the guaranteed bank.
They have heard, the echo of the blow that has
been struck at the national banks Oklahoma
by the attorney-gerieral's ruling, which denies
-. such banks the right to share in the benefits of
. fl'tlie state guaranty system that echo being the
surrender of charters by national banks which1
prefer to befcome state banks Tather than sur
render the benefits of the guaranty system.
Four national banks havo surrendered their
charters and are now conducted as state banks,
while sixteen more have applied for state char
ters. Your people have also seen how the in
fluence of a few big banks, concentrated upon
a legislature, can defeat the wishes of the
smaller banks and the desire of the depositors
all over tho state.
I submit that in this effort to make all banks
secure, the democratic party is the champion of
the farmer, the laboring man, and the cham
pion of the banker as well. No class is outside
of the benefits of this law, for it bestows its
blessings upon all.
Why has the republican party been so quick
to respond to the demands of Wall street and
so slow to yield to tho demands of the masses?
There are two reasons: First, tho republican
party has allowed itself to become the servant
of the favor-seeking corporations; and, second,
too many republican leaders look at questions
from the aristocratic standpoint, the standpoint
of the few, rather than from the democratic
standpoint, the standpoint of the many rh
legislate upon the theory that society is n
pended from the topand they fail, therefor
to understand either the evils that afflict n,
body politic, or thremedies that are need?
The democratic party, viewing questions from
tho standpoint of the whole people, easily 8J
that which republican leaders do not discover
and its remedies begin with the relief of th
average man. This is the secret, if secret then,
be, of the primacy of our party in matters nt
reform. L
When Solomon was invited' to choose what
he would, he. asked for an understanding heart
that he might discern between the good and the
bad, and ho was told that, because he had
chosen wisdom rather than wealth or long 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 bene
fits the common people, it, finds that in acting
in the interest of the common people, it also
promotes the welfare of tho smaller classes
which rest upon the masses, for when the pro
ducers of wealth prosper, their prosperity is
shared by every element of society.
Indorse Stand for a Dry Nation
BO.ow are a few of thti letters received from
readers of The Commoner in response to Mr.
Bryan's appeal to join with him in the work of
driving the liquor interests out of the party and
nation:
J. W. Hughes, N. Y. I agree with Mr. Bryan
in every respect, and it will afford me pleasure
to help in any way that I can.
A. B. Curtis, Ind. Inclosed please find ,my
check . for twelve dollars"" for my subscription
and nineteen other -Bryan men at your special
low club rate offer. I have read your Common
er from the flrst issue, and would not be with
out it. Mr Bryan is fighting the battles of the
common people and we are with him.
Harvey A. Sweigard, Iowa. I am heartily in
sympathy with the movement advocated by Mr.
W. J. Bryan, and I will do what I can to the end
that the party I love and stand for shall espouse
the principles at issue.
T. K Grubb, 111. I am enclosing herewith
my check for $3.00 together with -five names,
including my own, for a year's subscription,
taking advantage of your club rate. I offer my
scervice in cb-operation with Colonel Bryan's
great temperance move and can be depended
upon to serve the good cause in any wayin the
bounds of reason that I might be commanded.
Wm. J. Rodda, Iowa. During the last twenty
years I have, under all conditions,, stood and
fought for Mr. W. J. Bryan and the principles
which he advocated, and at no time have I been
more proud of being a follower of him than
now, for he has prophesied, and his prophesies,
come true; he advocated progressive national
policies and they were enacted into law; he held
up" certain political manipulators to public
scorn, and tliey were driven, from the councils
of the nation.
W. A. Ditzler, Pa. I an in hearty accord
with the course of the Hon. W. J. Bryan con
cerning national prohibition, and I am sure that
no one is more capable in conducting this cam
paign than Mr., W. J. Bryan. I for one will do
alt in my power to assist in bringing this about.
E. W. Jack, Cal. I am thoroughly in accord
with your plan and efforts to make this a sa
loonless nation and to align the democratic
party upon the side of morality and right in the
contest. "
R. W. Knox, Pa. I have your letter of Jan
uary 3Q, concerning the situation in the demo
cratic party, and am glad to say that I am ready
to help in this county in whatever way is best
and I have already paid for five copies of The
Commoner to help start interest in this county,
and trust I will be able to send you more soon!
Chas. Thompson, Ark.-! think the plan Mr
Bryan has outlined for the next four yearCis
one of the most important he has ever1 under
takenspeaking from humanity's standpoint. I
am hoafrtlly in sympathy with the move and you
may count on me for all the assistance I may be
able to give. Am glad to advise you that the
Arkansas legislature, now, In session, was one
of the flrst to enact a "bone-dry" law after the
supreme court's, decision ,on the Webb-Kenyon
law.
O.. C. Kirkpatrick, 111. I am enclosing on
your blank for club rates the names of five sub
scribers for another year, together with my
check for $3 to balance accou-ntnm the same. I
am also glad to note that other club subscrip
tions are being sent in from our city and that tho
mailing list of The Commoner .is, probably three
times as great here as ever .before.
H. S. .Case, Ind. I must congratulate you for
the noble, effective and telling blows you ad
ministered to the associated bosses, the Wall
street members1 of tho - bankers' trust,
Roosevelt and Hughes.- The termina
tion of this conflict may remind some
people, of the reasonable and unreasonable rul
ing in the trust legislation, that turned some of
the worst and most dangerous law violators
loose that the country ever saw, to continue
robbing the American people. I would like to
live to see the day when the great mass of the
American people would realize what' you have
done for them. Almost all of the best laws
passed during the Wilson administration origin
ated in your brain and-you fought the Devil and
Tom Walker for their passage.
Geo. S. Hartley, Kan. Herewith check for
$3.00' and list of five subscribers, for The Com
moner, Mr. Bryan's effort to comhine the Tem
perance cause and the democratic party and its
principles meets with my most hearty approval.
A strong sehtiment prevails in this community
for such a move. We want to see a prohibition
plank embodied in the democratic platform.
C. T, Lewis, Mo. I am heartily in accord
with your plans for reorganizing the democratic
party so as to put it in control of those that are
tfpposed to the liquor interests. We need sober
men in all lines of business, if we wish to suc
ceed, then why should we not have them in the
vatfftms political offices of the state and nation.
I hope you may live to see this nation of ours
dry.
S. B. Davis, Mo. I am in" accord with the
movement to rout "Old King Barleycorn." I
think the time is at hand to start the fight also
that W. J. Bryan is the man to lead the forces
who believe in it.
B. F. Brown, Mo. I "congratulate you most
heartily on your decided stand on prohibition.
I am with you flrst, last and all the time until
we are freed from the curse of the liquor
traffic.
Leonard C Keller, Ind. Find enclosed sub
scription list with my check of $4.80 to pay for
same. This is my personal contribution to get
The Commoner before a few of my friends. I
hope to get up quite a list of new subscribers
shortly, and will also send you addresses or
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