Jasper County Democrat, Volume 12, Number 25, Rensselaer, Jasper County, 3 July 1909 — THE GUARANTY OF BANK DEPOSITS. [ARTICLE]

THE GUARANTY OF BANK DEPOSITS.

During the late presidential camgaign the Democratic party in this state and in the national platform advocated the guaranteeing of deposits in banks. The Republican party assailed the Democratic plan, declaring that it would lead to “wildcat banking.” The idea has grown

in favor, however, and bankers generally are* coming to believe some sort of insurance or guaranty is necessary. At the recent session of the Indiana Bankers’ association It was apparent that this state is not behind in this respect. One of the bankerrsaid: “In Kansas the national bankers are organizing not only to guarantee deposits without aid, but to prevent bank failures, and I believe the time is coming when our group associations will organize their own clearing houses for credits, examination and mutual protection. It may be that political John the Baptists have raised the cry in the wilderness which has called attention to the need of these reforms, but. we are realizing that by organization and friendly co-operation we can eliminate the evils.” Another one said; “If people form great combinations for protecting their families by life insurance, why could not the banks of the country be organized In sections and by the payment of a small tax on deposits accumulate a fund that would protect the depositors of a bank that should die? Then there could be no frightened depositors. Why could not those bank sections be so organized that they could be subject to close examination and control so as to prevent bad management? The fund would not have to be large and the tax that produced It would be small. Any plan that produces the strength of such union will produce confidence.”

Both of these men tried to make it appear that they had not been influenced by the political discussion of the question—one of them even going so far as to make an offensive allusion to Mr. Bryan as a “peripatetic ana perennial candidate—but they both cried aloud the need of guaranting deposits. So it appears that Democratic proposals which are at first scoffed at are eventually embraced with affection.