Show INSURING DEPOSITS I I REAL LIVE ISSUE I j Raymond Declares Declares- It Is Chief Topic of Present i Campaign I SAYS PEOPLE ARE MISLED Shows How Uncle Sam Saml in iii Fact Now Guarantees j the p posits j BY llY RAY RAYMOND rO D I Rights nights 1908 b Tribune company Chicago I L Washington S Sept pt 21 Judging 21 Judging from rom the tho p personal letters Jetters which reach me ne the thc question of ot the Insurance ce of bank deposits comes cornea nearer to being a 1 general than an anything e ie e which has been broached during tIc UC ent campaign The people art an talking of It moro mOIo than they are arc about tho the tariff and curiously enough they know much less about it H Many luny lIe Re- are honestly confused and some jome Dem are Intemperately vehement Tile The truth Is the question of Insurance r f nce of bank de deposits deport o is an I c 1 issue Which really has hat no place in politics at alL If n It Is a good thing there Is not reason why parties should not nut be bo in favor of or It It and It If it Is' Is a a. bid bad Q thing wise men who have the Interests ts of the people at heart and who want to lo see the tho country prosper ought to dl discuss u the subject without the slightest regard to whether It has hM been declared fOlb for fOl b by a Democratic national convention Or by bV fL a t t. t I n r tion If IL there ther 1 n ns s system l 1 b by cl j a 0 man who puts his money In a bank I can be absolutely certain he will get It t out a again aln on demand It Is woith woth consideration Too New to Consider The Tho curious thing about this 1 I h neither of oC those who favor or It nor tho those these e who arc are opposed arc are possessed of ot an any too much Information as asto to the dep deposits of ot tIl tIle the banks of or New ew York I three-quarters three of oC a n century ago was wasa was was' wasa a fantastic allure as every C ono knows n and the state government government had I 10 Lu come to 10 its relief relict On Ott the tho other hand the people of Oklahoma have recently enacted a bank guarantee law and believe it Is a success It Is quite possible tho the New York failure allure from 1829 onward was due to 10 peculiar conditions at that time and It was too long JonE ago to be bo tal taken en as a guide I for modern conditions It is equally equall t true ue ue OI Oklahoma lahoma experiment I I In ment ht Is 11 much too now new to bo be worth anything at all It has never yet C been tried on these conditions on tried as by fire lire It Is little short of foolish to taUt of or It t as aR an any reason whyS why such a eVOI Jn ln I our nt J 1 or c nit J fi T 9 l f In view t t ls l lack ak of dr ex exact ct lf r. r nation mation al home horne and abroad and halting between a a. pronounced failure too long ago to bo o a 3 guide guido and an nn Infant experiment too young to be he beof beof of value It Is no no wonder the tho people are arc studying the question and are aro frequently confused a. a as us to Its Us real bearing Amon Among a 11 good man many letters I have havo received on the subject I peU-ct peU One ne written b by an Intelligent man at Peoria IlL who vho whoM says Kiya M ho he Is a lifelong lifelong lifelong life life- long Republican and Intends to rob for fol Taft Taft- At tho the same time ho he Is confused about the hunk bank guarantee Juar plan and Is seeking Information One question he asks s Is common to a good many letters and It seems to have havo received s some ome attention from rout Mr tIr Bryan Senator Gore Gorc and other people peo pie pic who ought to be 10 better informed before they attempt to dl discuss u na- na on Pane Pace Two T I DEPOSITS A REAL LIVE ISSUE Continued from room p Paso Page c Out One financial issues Issuer Tho The Peoria mention is u us as follows s The Time government compels all banks to guarantee all the deposits which It makes In them Is this n a bad thins thing for tho time government and also a bad till thing UK for or thin the banks hanks as you contend the guaranteeing the deposits of ot all depositors would be he Why should the I government g compel banks s to treat trent It bettor be than they tr treat at lie tho citizens of or orthIs I this country countr Wrong roil h Idea Ive I've seen that same caine question asked a great mummy many times and In various J Mr Bryan anti and others appear to bellevo It has somo some bearing on tho tIme question whereas in point of ot fact it has line nothing to do o with time the case cane People who are arc contused confused by this question ques jues- If thin tion mb do O not realize It Is an Issue of or all nil the thu banks guaranteeing tho the deposits of each bank batik which I 1 believe to be so 80 dangerous and not a question as to toI whether any public depositor may re require cc- cc I quire security from his own hank beI before before be be- I fore he lends it H his mone money The rho government gov sov- eminent does not require all nil of ot the banks to guarantee the deposits of ot anyone of ot thou their number an and It If the tIme government attempted to execute any such uch preposterous order It would have havea haven a n goo good deal less leBs money mooney In tho the bank than it has today Government deposits In tho national banks under the tIme present system arc aro essen essentially laIty nn an and absolu absolutely ely different from those of nn any other depo depositor llor In Inthe Inthe Inthe the the first place they are not put Inthe Inthe in the tho banks hanl s for safekeeping nor even Oven evenor for or tho convenience of ot the govern govern- I mont ment That is to ea say tho thu best beet th the most secure treasure vaults In this I country are those of or tho the United States In tho treasury hull building In Iii Washington Washing Washing- ton anti and in the time various treasuries sub-treasuries In the larger cities Uncle Sam re receives receives receives re- re his own mone money for or taxes tates and pays PR'S It out again for tor his expenditures He Issues his own cheeks checks which art are payable at his own treasuries sub and he lie collects his own money through his own officials So far as the time n necessities cc's of ot the government nr are arA concerned tho the treasury and Its subordinate sub sub- treasuries are aro nothing moro more than a great central bank banI having behind It branch banks bans to look after attar tho ho in interests interests interests in- in of or different sections of ot the country Undo Sum Stand So 50 far tar as tho the necessity or convenience con eon of ot the government goes there there- Is no reason why a single dollar should be deposited In tho the national banks bank except to meet tho current accounts account of or disbursing officers In fact tact the contrary contrat Is true It Is easier cosier for tor the government to keep Its money in Its own vaults It does not do 10 a a. commercial com corn mercial business It asks no favors of or the tho banks It Is in no sense a customer of ot any bank as 03 tho the commercial commercial com corn mercial world worl 1 understands tho ho term At the tho present Urno there Is In the lie national banks to lo the credit of or the tho treasurer of tho United States approximately up ap proximately l That Is surplus l Idle le fund belonging to lo the government go It is a special deposit with the national banks and Is not subject to daily demands and amid the ebb ebband an and amid How of ot dally daily business But Hut tho the banks now pay Interest on these theeo d dd- dd posits which Is not the tho lie Cl case 0 with ordinary or or- checking accounts In the time large cities If It the government o did lid not have havo un an enormous surplus thieve there would woul bo ho no special Jal d deposits In tho the thoi i nu national l I ordinary work workIng In Ing operations of or the gowl m are amk J con conducted direct from thiS tho treasury f r fand rand and If U at an any time It becomes necessary necessary sary san to withdraw tho the special deposits f they are turned at Into tho the treasury treas treas- Ut Ul ury vaults aulls In cash n Co for I Go Government Deposit Deposit- I What puzzles most people Is th lh- fact that the government s has mono I In the lie banks bonks at t all ail There Thero Is on only one reason for tor It It and that is to pro pro- I vent a reduction In the circulating medium of or the country If It the United I States w were re to withdraw 1 from circulation today there would woul probably be a panic tomorrow Th The whole Idea of tho the deposit therefore Is that lint tIme the people themselves ma mahave may have the benefit of this surplus mone money until It Is Js actually nee needed ed for th the lie current expends of or tho the government After Arter do de oslOn this money mooney In t tn tau 10 national banks mere merely for the lie bencil of oC the thc le Ie and without there thero being any Rny benefit to tho the government o itself Itsell t t is only natural for or congress to provide pro pro- vide ride that every bank unk receiving sue such special deposits should receive It Ity for fOI It IL The They are aro also nIsI required b by law to put up approved stocks on and bonds They are arc also required to pa Int Interest to tho time government for tor tho tIme uso use of tho the mone money Furthermore tho no law nw requires that those special deposits shall be bo distributed us ue fairly as poe poa slide sible so as to keep the tho money mommy In circulation circulation cir clr cir cir- throughout hout the country In Inasmuch In- In as the lie deposits of or the time govern Jo mont ment on this special list are uro entirely entirely- Inactive as s the they are arc not liable to bo ho checked checke out any da day as they are In ir fact never withdrawn without ample notice tho time banks can cnn readily afford to give he security It is Js a security to an Individual de do and tho ho government govern govern- mont ment official who would allow tho the mon money nf of tho the cople caple to lie Idle In the bank without such security would perPetrate per per- a crime IM I. of or Collateral There Is 18 no imo possible comparison between be bo- tween the thc deposit of ot security to guarantee guar guar- antee the return of ot government 10 de deposits do- do e- e posits and ond time the Joint guarantee of all aU the banks to time the credit of or an any ono oil of num number er Tim Tho transaction between the time government go and the banks Is us simple and as os natural us ILS that between en tho ho capitalist and Onil th the real estate owner who borrows mone money on his tile lan land or the tho merchant who goes gnes to his bank un and ammil secures an all advance a based upon n ii ar holts 01 or a railroad rail mall road bond It Is a question of or simple collateral and the transaction Is conducted from rein start to finish C for I tho sole purpose of or protecting the people peo peo- pie pIc who Ar are the other dc do In tho the Maine sarno bank from the evil 11 effects that would ensue If Ie tho time government should take Its vast surplus fund and lock It Itu Itu itU u In tho the vaults of tho Iron from day a to day n antI and from year to year where it would lose its HIS function ns as mone money and deprive the tilo ordinary r arter- arter l Its It's s f of b of that much necessary life blood There s mm In tho the world to prevent pre pre- vent remit an any depositor to give his mono to an any bank except upon specific security lie is then loaning mis us however howe and amid not riot depositIng depositing deposit deposit- Ing it iL The Tha There Q o In lit nothing in the time world to an number of banks com coin to et er r and agreeing to protect protect pro pro- teet time the deposits of all of oC There herc I IK I. IH however a vast deal of between a voluntary combination of I brinks banks to secure a 0 combined credit for themselves which is In reality nothing noth noth- in lug ing more nor less than the creation of ot ofa ota a lot of branch bin banks Its with a central head bead and the passage of a law lai n ng every man when ho goes oes Into tho lie banking business to become a watch II dog dOJ fur for his rivals as well as us his friends in tIme the same somo business Should t li lie Whatever people may think about the time bank guarantee plan plon they should not miot b become como confused contuse because tIme the government govern govern- ment meat wisely widely requires individual 1 banks s to put up Ull to secure Its deposits just lust as It requires the Lime t-aine t banks anks to put up him bonas to ty t secure the Lime circulation which the time gO government nt guarantees lu Iu neither case cuso is there a Joint 11 i tee toe bv by y th time the banks und amid time the government u deposits In time the national bunks are riot not to 10 be e considered for tOI a moment as or- or lInary lie deposits posits but aro In 10 effect call case onus t K secured by collateral In ever I With Ith his own Impregnable vaults an and I with his nib own complete completo banking em It would be toll roll folly for tor Uncle Sam hum um to o mike luko his lils money to tu a bank bani without security or to leave heave it there tom for a n. moment mo mo- ment mont except for tor time tho sole purpose of ot cn- cn n. n It to continue to lo serve 0 as alJ money mone for tOl or the tIme on benefit cUt of ot tho tio people whoso trustee till the who oM t Is I |