The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1902-09-20
s14.sO4.275Oa


homa s1s,767SS244 The excessiv
amount of deposits held b. the ma
tional banks over the amount held b.
the territorial banks may be accounte,
for TO large extent from the fac
that many national banks of the ter
ritory are used as reserve agents b,
the territorial banks Based upon
population Of z million, the per cap.
ia deposit in territorial banks wa.
S15.67, and in natl 1al banks. s22
while in both combined it was s37.67
Conservative bankers in Oklahoma
criticise without hesltancy the law
which permits the organization of q
bank with a minimum capital stock OF
$4,000, and the beginning Of business
with only half this sum paid in. There
are nearly 100 such banks. Many of
them are scarcely more than Offices
for the lending of money at big rates
OF interest. Should there be a season
of poor crops in Oklahoma conserva-
tive bankers fear that many of these
smaller institutions would go to the
wall. and unjustly iniure the credit
and standing Of the solvent and strong.
er banks. In all probability the next
will be asked to enact a
law fixing the minimum capital stock
Of all future territorial banks at not
les than $4,000 and possibly requir.
ing present $4,000 banks to Increase
their capital stock to $4,000 within a
certain period Commissioner Cooper
candidly condemns the present law
saying.
The Law is Liberal.
"The present law being so extremely
liberal as to the capitalization requir-
ID, there have been organized and
opened for business a large number Of
banks with capital which is made
luate to insure the requisite degree Of
responsibility for the peoples money
deposited with the banks Under the
present state of the law 50 800 in
lctuai money is all that Is required to
'pen bank and receive an unlimited
mount Of money on deposit. and
'ne-third portion of that grossly made
Iuate sum may Immediately after
'pening be invested in real estate or
lxtures. To the initiated mind no
rgument is required to sustain the
proposition that the amount Of
ank's capital should bear a reason
blesratio TO its liability to It's deposit
ors. It is with the frmest conviction
hat the public good will be promoted
nd that Oklahoma's banks viii be
etter banks, ana consequently thatthe
urplus balances OF the business man
nd the savings of the farmer and the
rtisan win be safely kept that /
recommend 10 the serious
OF the next legislature
iat the minimum capital with which
bank may open for business in ok.
lhoma be the sum Of $4,000 which
hall be fully paid before authority
given to the bank 10 open for bust.
eas. In this respect the present law
hould be amended The best bankers
the territory and in fact the large
majority Of experienced bankers ey-
rywhero share this opinon.'
Commissioner Cooper. discussing
anking conditions and the banking
wv, says further
A Mixture Of Authority.
During the biennium now closing
here have been. including myself
'ur different bank commissioners
ouducting the business Of the bank.
~ department each holding Office
'r a period of about six months ana
the expiration Of that time resign.
" his commission. Changes occur
ng 90 frequently necessarily disor.
anize the work Of the department.
nu aetract greatly lrom its efficiency p
he causes are no doubt easily as
artained. When the present law was
assed four years ago. in January.
'ss- there were about fifty banks
ader the supervision of the depart.
ent. and the salary Of the commits
oner, and more especially the an.
'opriation Of $500. made by the legis
ture at that time TO cover rent Of.
20 supplies and travelling expenses
as sufficient TO successfully carry
the work OF the department. with.
It any surplus. however.
The banks have been increasing In I
imber SO rapidly that 10 visit each !
le personally and conduct the large :
Frespondeaee Of the department at 3
il Il 80 Ia