The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1898-12-09
BANKERS ADJOURN.
}. W McNesI Eisc' ed Preside snt--shswne
the Nsxt mestsOe flsce.

/ Ahfs
After the address Of Mr. McNeal. the
first president Of the association. L.. c.
Guss, read the following interesting pa
per;
This a subject that requires a great deal
of thought and very careful consideration
and then almost any laws would or might
need experience to see just how they
would work out.
1t is pretty generally conceded that the
present law was not passed in the in
terest of bankers nor depositors and the
writer is at a loss to know who is bene-
hted.
To undertake to say just what sections
Of the present law should be amended or
repealed and new sections supplied or
fixed up in some wey so as to be acep-
table, would be time lost for It Is gem
orally conceded by the legal fraternity
that the law would not stand the scrutiny
Of the courts but would be declared un-
constitutional If tested and 1 believe that
1t would be best If the present law were
repealed an entirely new bill prepared
and passed. that would be equitable and
just to the banks and to their customers
one that would protect both the bankers
and the depositors.
II the general plan Of Bank Examiner
is followed, l think he should be a terri !
torial officer and be paid out of the terri !
torial funds, for it is not claimed that |
bank examiner is for the protection OF |
the bankers, but of the citizens OF the |
state or territory. lie IS employed in be-
half OF the state or territory to protect |
the citizens against any unlawful act /
of the banker. so no dishonesty on the
part Of the banker is practiced on the
citizens of the state or territory. 1t is
his duty to guard the citizens against
fraud and crime that the bankers may
commit, and he should be paid the g.
as any other officer. and this burden not
put upon the bankers.
would be in favor Of law imposing
severe penalties upon intending violators
of the banking laws. and see to its en-
forcemen-. Deliberate robbing Of the de.
positors by banker is high crime and
should be punished accordingly.
II this plan were followed the examiner
would not depend on the banks for his
salary, but would be a state or territor-
ial officer and responsible to the state
or territory the same as any other officer.
and do not think it is the place Of the
bankers to pay for the privilege Of be
ing watched.
BANKS ARE PUBLIC SERVANTS.
II the banks are public servants and
subject TO police conveyance, think they
should have the benent OF law that
would Protect them against borrowers
who do not pay for money borrowed af.d
money borrowed from a bank should be a
first lien without any exemption on .ne {
property owned by the borrower, and
subject to execution and sale, first, to
pay the bank its money, and not subject J
o mortgage Indebtedness. In other words G
money borrowed from a bank should be {
first mortgage on everything owned
by the borrower This. think would /
place the banks In the position OF pub 7
ic servant. Ii
straight law should be passed for the 1
and running Of a bank so t
I'll particles depositing money win be pro- y
ected against loss, to the end that no d
'ank can faii and depositors not yet the a
money intrusted for safe keeping IN the }
banks. d
This is important as ., VIII create more d
confidence in the banking institutions OF
he territory than any kind Of legislation q
hat can be passed, and Hake the banks :
he solid financial institutions they should
be.
A great deal has been said and written
about some plan Of the State or Nation
guaranteeing depositors. and thus stop
al possibilities of a run on banks. But '
all plans proposed have serious objections c
TO them, either on behalf OF the banks or Z
not properly protecting the depositors, but
| feel that some plan should and will be
devised that will not be burden on the
and yet give absolute protection
to the depositors. And l think 1t oppor-
tune TO present some ideas on that line
for your consideration.
In order to create a fund in the terri
Iorial treasury so the territory could guar
antee deposltors. say each bank pay into
the treasury one-forth Of one per cent. per
annum, payable quarterly on the average
deposits OF such bank. TO create a fund
to be used only for the purpose OF paying
on depositors In failed bank. This would
create sufficient fund for all needs and
when the fund reaches two hundred thous-
and dollars 02OO,OOO) no more calls to be
made until the fund is below that amount
And let this fund be invested in good
schools or state bonds. so that. when a
fund Of two hundred thousand dollars
600 GOD was created it would be about
considering the average
failures, and / believe, with the proper
in examinations, ETC., the
average failures would be very materially
and It would stop all possibi-
lity Of a run on the banks. 4