_Ninth_: Our United States Notes again demonstrated the fact that Government credit should never be used as a basis of legal tender money. Tonight we are to discuss Reserves, which are the protection or guarantee of credits granted or debts created. Is that a correct definition of reserves? MR. BANKER: Uncle Sam, I don't think anyone could give a better one. UNCLE SAM: By way of encouragement to you men, before you begin to discuss the subject of reserves, I want to gamble the prophecy that if you will work out some method or plan that will make it possible for the banker to pay all his deposits on demand, and at the same time will enable him to continue to use practically all of them in profitable employment, I will guarantee you now the support of every banker for your plan, when you've completed it. MR. MERCHANT: I don't think you assume any risk in that guarantee, Uncle Sam. MR. LABORINGMAN: Uncle Sam, you say that you will guarantee that every banker will support it. That insurance policy won't be any risk at all. Won't cost you a cent. I tell you now that if you can work out a plan that will amount to an absolute guarantee of deposits, as a matter of administration, I will guarantee the support of every depositor in the country, and if I could prove it to their satisfaction, every depositor would gladly pay me from one-quarter to one-half per cent on his deposit. Do you know what I would get at that rate, say at one-quarter per cent, only $42,000,000 every year; for our deposits you say are now seventeen billion ($17,000,000,000). Have you men ever looked up bank failures in the United States? Here is something I stumbled upon yesterday. Our country is so extensive and our banks are so numerous that nothing whatever is thought in one part of a bank failure in another part. Especially is this so since they occur so frequently. Like the operation of the guillotine during the French Revolution and the automobile manslaughter of today, bank failures in the United States have become mere passing occurrences. Is this putting it too strongly? Let us see. Since the establishment of the national system in 1864, 518 national banks have failed, with liabilities reaching $244,000,000. The direct losses of the failed banks amount to $38,000,000. Two thousand and fourteen state and private banks have failed since 1864, with liabilities amounting to $825,000,000, and probable losses of $200,000,000. The total liability of all banks, national, state and private, failing since 1864 is $1,069,000,000. Their aggregate is 2,532 banks. In other words, fifty-six banks have failed every year on an average, or nearly five banks every month, and more than one bank every week. Three hundred and fifty-one national banks have failed since 1890, with liabilities aggregating $174,000,000. One thousand four hundred and six state and private banks have failed since 1890, with liabilities aggregating $694,000,000.