The Wichita daily eagle. [volume] (Wichita, Kan.) 1890-1906, 1902-08-14
WARNS PUBLIC OF DANGER
Declares Laws Should Require
Greater Capitalization
100 MANY DEPOSIT0RIES
Day County Alone Lacks a
Bank or Two.

Guthrie. O. T. August t13.-Paul T.
Cooper. territorial bank commissioner IS
the author Of an article on Oklahoma
Banks and Conditions which appeared
3n The Southwestern Banker. journal
devoted 10 the interests of bankers and
financial men. Mr.. Cooper goes into de-
tails in telling Of the growing banking
business in the territory. He says as
follows:
"At the present time there are about
172 territorial and IS national banks do
sngk business in oklahoma I use the
word about advlsedly. as there are new
banks being organized every day, nearly
and it not infrequently happens that
several are chartered in one day.
''The late amendment to the national
banking law, authorizing banks to in
corporate in towns Of 5000 Inhabitants
or less. with minimum capital Of 30
O01, Is considered quite liberal and as pro
vfding legal machinery by means Of
which no town Of promise or business
enterprise need be without banking IA
ci1ities, even though the businesa Of
banking was governed and controlled ex-
clusively by the federal government
EASY TO BE BANKER
'.Under the territorial law of oklahoma
very ntIe is required OF those desiring
TO become bankers. Banks may be in
corpsrated in towns whose population
does not exceed 25eo with a-eapital stock
OF $5,oo0 and they may open for busi-
ness with but one-half Of this amount
actually paid in. paying the remaindeT
at the rate Of 10 per cent per month
until fully paid.
BY far the greater number Of our ter
Itorial banks are capitalized at $1,000
out of 155 banks reporting on June Il.
1902. 80 Of that number We're capitalized
at s5l0o9. Two banks at 5000, two banks
at 5000. three banks at SSoo9 thirty
nine banks at Sl0,o9o. one bank at $l2,500,
nine banks at S250o0 and one bank at
$4,000
"Whleyer. a hank has. increased its
capital 10 S25.0oe. after having incorpo-
rated sor "a, less amount IN almost all
cases, The t6rrtoriaIz ohzrter has been
gurrendersd end s~st- fedeTaf charter Sc
cured and operated under. From this
IL would appedr that the prestige of q
national charter has proven more at
tractive to depositors than the territorial
charter.
AT any rate in Oklahoma, where the
population limit prescribed by the fed
eral law viii permit. there are practical
charter with S25.00o capital stock A no
table exception is the Gerlach bank at
Woodward. with $4,000 capital and pro-
portionately large surplus and profits,
iy no banks operating under territorial
still continuing 10 use its territorial char
ter when the conversion OF the bank
could be easily accomplished with even
less capital than it now employs
There are also few others whose
combined capital. surplus and profits
might be sufficient TO obtain a national
charter in their respective localities.
DANGER IN CAPITALIZATION
a law permitting the Incorporation Of
3 bank with a capital of S5.000. and es-
pecially If il contains a provision allow
ing the bank 10 begin business with but
$500 paid in is not a law to which the
citizens Of any commonwealth may point
with pride
bank must have a building and lot,
either its own or a rented one. and in
the smaller towns the bank usual yowns
its own building and lot. it must also
have suitable safe. and counters. the
law limits the total amount OF invest
ment in real estate. furniture and fix
lures TO one-third of the hanks paid-in
capitals banks starting with $500 paid
IN are limited in their real estate. furni
ture and fixtures TO $S35.sS. and those