Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1908-01-30
OKLAHOMA EXAMPLE
CAUSES NEIGHBORS TO SIT UP
and take NOTICE.
The Provision of the New State to
Insure Bank DepOSlfOrS Attracts
widespread Attention. Bankers
In Adjoining States Are Agitating
FOR Similar Law.

Already it is manifest that the exam
pie set by the people Of the new state OF
Oklahoma in the matter of providing for
the insurance of bank deposits is, in
effect, more direct and far.reaching than
was at first supposed. 1t already has it's
influence in active banking circles in the
middle west, and the fame and merit Of
it, surprising to say, commands favorable
consideration OF conservatism in staid old
Massachusetts.
The banking effect in the middle west
comes about after this fashion: There
was considerable distiust among the
Oklahoma people with reference to the
condition and stability of the territorial
banks, which led to a large volume of
Oklahoma deposits in the Kansas and
Missouri banks. Kansas City being made
a considerable banking point. With the
enac'-"ant OF the depositors' guaranty
law, Oklahoma bank patronage is trans
ferred to the home institutions, as there
appears to be absolute faith in the efficacy
of the new legal assurance OF safety. The
result in Kansss is the agitation for
similar law in order. to save the business,
with the wave extending to Missouri.
Added to this, the state banks of Okla.
homa, as amenable to the new law. are
permitted to advertise the fact, and this
in turn has led the national banks in
that state to apply for permission to
meet the laws requirement in order that
they may compete for business.
Here is a general financial agitation
Get afoot by Oklahoma which one can
easily perceive is destined to spread and
become the more vigorous. 1t touches
the very heart OF the most productive
section Of the country; and, unless all
signs fail. will lead ultimately to the ma.
tional consideration OF this or similar
plan. The assurance OF this lies in the
fact OF self interest which will prompt
neighboring banks to avail themselves of
the advantage that lies in the law. And
beyond the fact OF self interest in the
further fact Of apparent merit in the
scheme which the exigencies of the time
makes a matter of peculiar interest to
the entire country. The Massachusetts,
view OF the subject, as roiced by the
Springfield Republican, is interesting
and is given in part:
"Let no mistake be made regarding
the import Of this plan. 1t does not
mean that reckless banking can DO gen.
orally INDUCED in with safety to deposit.
ors whom the government will protect at
its own or the peoples cost, if the gener-
al bank protection provided should fail.
1t amounts rather to a plan which will
compel conservative bankers to watch
and act against dishonest, reckless, or
speculative banking among neighboring
competitors-employing either such NOR
al or financial forces OF their own az we're
used against certain institutions by the
New York clearing house during the
recent panic, or enlisting the aid Of the
public inspection authority having in
charge the matter Of guaranteeing de-
posits. 1t would thus come to be
measure to enlist on behalf of sounder
and safer banking, all around. the re-
straining influence Of the abler and more
conservative men in the business. And
this is q need OF which more than one
prominent banker has been speaking of
late. ."-Portland Telegram.