Arizona republican., 1907-12-09

under the same conditions. and in structions as provided by existing law, and such receivers shall proceed at once to collect from the assets, and the stockholders. and pay to the comp troller who shall declare dividends payable to the holders of the approved claims, as already provided by the na- tional bank act of 1864 and amend ments thereto. but after the passage of this act. the comptroller of the cur rency shall at such periods as he shall deem expedient. demand from the re- ceiver a certified list of the unpaid crrditors. at that date. and he shall pay such dividends as he shall deem to be expedicnt. and charge the same to the national bank deposit insurance fund, provided for in section l. He shall in his discretion demand further certified lists of the unpaid creditors. and pay further dividends out of the deposit insurance fund.- except as further provided in this section. until each creditor has received payment in full of his claim as certified by the receiver The last dividend above provided for to be paid within two years from the date of the appoint ment of the receiver except as further pr vided in this section.
 Whenever the comptroller shall have paid the final dividend to all deposi- tors. he shall deposit all funds receiV- ed from the receiver to the credit of this insurance fund.- until the receiv- CT has collected from the stockholders. and from the assets. all that is pQssi- ble under existing laws. and has made his final report.
 That the Comptroller of the Curren- cy shall pay the depositOrs and credit ors of said banks in the order in which the receivers shall be appointed. If.
 however, there shall not be at his credit and in this National Bank De- posit Insurance Fund" an amount suf- ficient to pay in full the amount due and unpaid to depositors as provided
 in this section the Comptroller shall
 defer payment to said depositors and creditors until the assessments of sue
 ceeding years shall enable him to make such payments.
 That no national bank in the hands of a receiver at the time this act shall go into effect shall be entitled to any payment out of the said Insurance
 Fund.
 Section 8. That the foregoing sec tion shall not apply to banks obliga- tions as endorser upon bills rediscount- ed, nor 10 bills payable, nor to money
 borrowed temporarily of the cores pondents or others. The holders of this class of direct or indirect obliga-
 tions that is. creditors for borrowed money. shall not be considered de positors' and shall not be entitled to
 nay payment out of the Deposit In surance Fund" Receivers shall pay dividends upon these obligations as heretofore. under existing laws, but shall not include in their final reports any balance due on them, and the lCOmptroller shall not pay any part of ! them out of the Deposit Insurance Fund"
 | Section f. That the Comptroller of the Currency is hereby authorized and directed to invest by purchase at mar ket price through the United States Treasurer, such part of this fund as he shall deem expedient in bonds issued or guaranteed Gnterest or priciple) by the government of the United States. crediting to the said fund any interest which shall be received from said bonds That the Comptroller of the Currency is further authorized and di- rected to sell at the market price and deliver through the United States
 Treasurer any bonds in his hands and
 at the credit of this fund whenever in his judgment, the money received from the sale of said bonds to be de- posted to the credit of this fund with the United States treasurer.
 Section ,. That it shall be unlawful for any national bank to advertise in any way that their deposits are insur- ed by the United States government. MT Allis speaking of the measure,
 says:
 I cffer no apology for urging the passage of this bill for the Security of National Bank Deposits" The Comptroller of the Currency in every respect presents many
 unanswerable arguments in favor
 of such a protection for the depOsitors He tells us that the aggregate l5ss to depositors and others has been 1 s44S66. .931.O0 (page 352. 1s06). an av- craze of over $1,000.000 annually since | 1863. His report shows further that
 one bank nearly every month since the national bank act was passed. has been placed in the hands of receiver (page 310).
 A foreigner coming to this country. and looking over our financial institu- tions, finds one class to which the gov ernment has given its name-national banks. He finds that national bank notes are as good as gold. He has a
 right to expect that the deposits are secure beyond question.
 1 It seems to me that it is the moral f duty of congress to make the depositor i as secure as the holder. when it can be done at no cost whatever to
 the government. no guaranty or obli- gations of any kind. and at practically
 no cost to the banks themselves, for
 it must be admitted by every one. that
 if the depositOrs were assured as to the safety of their money. deposits iwould increase more than enough to pay the small assessment proposed in this bill.
 Some bankers object to any amend ment to the national currency act. but
 this amendment means growth. pro-
 gress. strength. popularity instead of
 six thousand national banks there should be sixteen thousand, and the
 depositor in every one of them should T.. sk, t,,1 T,.-