Jasper County Democrat, Volume 11, Number 33, Rensselaer, Jasper County, 22 August 1908 — GUARANTY OF BANK DEPOSITS. [ARTICLE]

GUARANTY OF BANK DEPOSITS.

Indianapolis News (Rep.). We think that Mr. Van Cleave is unnecessarily excited over the Bryan plan for guaranteeing bank deposits. There are objections to it undoubtedly, but that it would have any such disastrous effects as those spoken of by Mr. Van Cleave we do not at all believe. In all probability it would make all banks more careful, and lead them to de. mand a much more searching eramination than is now given. With a mutual guaranty there would be a closer co-operation among the banks, and each bank would feel that it had the right, and was in duty bound, to exercise through association a closer supervision over all the others. Instead of the honest banks carrying the dishonest ones, the honest banks would work to make all banks honest. At least this Is the way the matter presents itself to us. Further than this, as proving that this is no wild scheme of Populistic finance, we remind the people that a guaranty of deposits was proposed in the Fowler blll,| a bill that has commended itself to many students of finance, men whose soundness and orthodoxy can not be questioned. In neither case is it proposed that the Government insure the deposits. In both cases the plan is for the banks themselves to insure them. There is thus no paternalism in the suggestion. Nor does the plan seem strange when we remember that the Government has itself for years demanded absolute security for its own funds when deposited in national banks.

Speaking of the republican nominee for vice-president’s speech of acceptance, the Indianapolis News, which thus far in the campaign has shown a disposition to speak the truth about the political issues, notwithstanding it has always heretofore supported the republican ticket, says among other good things: Mr. Sherman declared that/a Democratic revenue tariff always brought reduced wages and lessening demand for American products. Since when? The “Cleveland panic" came, it is true, after Cleveland had been inaugurated, but before a single law had been altered. It came while the McKinley tariff was in full force and effect, just as the present panic came under - the Dingley tariff. Really, is not it about time to stop this hoary absurdity about panics as due in some way to the malevolence of Democrats? Panics come and run their course whether Republicans or Democrats are in authority, whether tariffs are high or low*. We all agree with Mr. Sherman that what the laborer wants is to exchange his skill for good pay in good money; but how can he say that a protective tariff and the gold standard bring both of these when we had them both at the time of the panic of 1893 and of the present panic? The rest of Mr. Sherman’s speech glitters with generalities, except when he, says that the issue of this campaign is, Shall the administration of President Roosevelt be ajiproved? Well, people ar© asking how they can best show their approval—by supporting the . candidate whom Wall street and the interests, denounced and attacked by Mr. Roosevelt, are supporting; or the candidate whom Wall street and the Interests bitterly oppose. Beyond supplying some more tariff ammunition for the enemy we do not see that Mr. Sherman has contributed much to the gayety of the campaign.

The meaning of hard times to the wage earners is afforded by the statistics of the New York savings banks, which the Philadelphia Record thus presents: The number of accounts closed exceeded the number opened—each of which is a little less than half a million —by 18,792. The depositors drew out $66,000,000 more than they deposited. The interest credited provided them with $50,000,000 of this, and $16,000,000 is the amount by which the total sums to their credit decreased during the year. With interest bringing in fifty millions, the depositors ought to have found the amount due them at the end of the year increased seventy or eighty million dollars; instead of that it decreased sixteen millions. The number of open accounts is 2,719,596, and we doubt if this army of depositors, men and women, can be imposed upon with the old Republican pretense that the ascendency of their party means prosperity.

If the right that the state, county, township and town and city deposits shall be guaranteed safe and secured by banks, why isn’t it doubly important that individual depositors be made safe and thus avoid panic scares and panic runs on banks? Much of our financial trouble is scare brought about by the masses fearing their money Is not safe in bank, and when one depositor gets scared and tells it, the bank is In trouble aild disaster frequently results from unfounded rumors. Make bank deposits safe and we will have financial and Industrial peace.-—Rochester Sentinel.