Jasper County Democrat, Volume 11, Number 40, Rensselaer, Jasper County, 21 October 1908 — DAWES FOB GUARANTEE [ARTICLE]

DAWES FOB GUARANTEE

Comptroller ot Currency Under MoKinley Favored Insurance of Bank Deposits. Charles G. Dawes was comptroller of the currency under Mr. McKinley. Since 1902 be has been president of the Central Trust company at Chicago. Writing in The Public. Louis F. Post calls attention to the fact that several years ago Mr. Dawes wrote a book entitled “The Banking System of the United States.” The following is taken from Mr. Post’s article: In describing in that book the “present need of our national banking system,” Mr. Dawes distinctly argues for the insurance idea that Bryan advocated in congress and upon which his campaign *is now advancing in the west Referring to a proposed law, advocated by Bryan in congress, which would have levied a tax upon national banks for the purpose of creating a fund for the insurance of deposits, Mr. Dawes wrote: “National banking statistics show that a fund of the necessary amount would soon be created by a comparatively small tax upon each national bank. “• • • it must certainly be admitted that til*; establishment of such a fund would have a tendency to prevent the mad rushes of small and large depositors during times of panic, for money which they hoard away in safety deposit boxes or other hiding places. “• • • If the effect of such a law would be to render bank deposits more stable under all conditions, as in our Judgment would be the case, no law could be of more vane and importance to the debtor, or to the creditor, or to the community at large. • • • Besides the great importance 3 of the law, as related to the general prosperity of the country, it is meritorious as preventing the keen suffering in those localities where bank failures occur, uud where the hard earned savings of the community, under our present laws, are often swept away; By such a law, losses are distributed as by insurance, the beneficial effects of which need no argument To the passage of such a law in proper form, we trust the efforts of congress will be directed.”