Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-10-29
oklahoma Banker Scores States
Plan of Guaranty Advo-
Gated by Bryan
MAKES BANKING TOO EASY
Irres ponsibIe People Staring Protect
cd repositories and State is IN
abe to Prevent Thcm-Law Has
Failed in Actual Opcration-Absurd
Rates of interest.

Guthrie, Okla, Oct. % According
to O. T.. C;rccian. president of the Firs,
/ National bank of McCloud okla. The
/ political economists who have dis
cussed the bank guaranty plan from {
/ theoretical standpoint have made in
adequate forecasts of the bad features
which the scheme has actually devel-
opcd in the course OF its short trial in
this state
Our so-called state guaranty law, ;
declares Mr. Grccan. Us. In my
opinion. the most vicious ever enacted
by state legislature one of the worst
effects conspicuously apparent is tbs
fact that new state banks are being
chartered at an alarming rate, and We
all know that there are already entire
~ too mny banks in the state.
more than fifty new banks have
benc started III Oklahoma since Jan. I
1905. and many of them. to my per-
sonal knowledge. Will be managed by
inexperienced incompetent, would be
bankers. who imagine that under the
guaranty law banking will be simply
n snap
There is no denying that, In the
eyes Of the average depositor, right at
the present moment. the guaranty
scheme looks good. IT is popular with
dcpositors, for the depostor feels he is
relieved Of all responsibility in select
ing his banker
incompetent Bankers Profit.
what is the inevitable result ,
That the would he banker has the adj
vantage over the substantial. the con-
servative banker. who has spent the
hes; years of his life building up solid
institution.
"Of course the Oklahoma democrat
will Immediately reply that all this is
the mere statement of individual
opinion and that facts are what count
Very we'll: let us go in for few facts:
The little village of Harrah. five
miles from here, with a population of
something like $50 people all it is
likely to have for some years to come
now has two banks. with total local
deposits of less than $4,000. one of
these banks was recently organized
under the guaranty law, and may legit-
mately be regarded as child of that
enactment.
Right here I might state that last
fall the older of the two banks was
hard pushed and that 7 came to Its
rescue and at least helped to keep I.
going. But now they are guaranteed
4 ftrxv~-
they are perhaps stronger than my
bank The fact Is they have been
paying 6 per cent on time deposits
and paying that as a normal rate---to
some of our own customers.
Absurd Rates Of Interest.
81 cite this instance of the situation
in the matter. but simply because it
$50 inhabitants and its two banks. not
because of any personal feeling l have
in the matter. but simply BECAUSE it
shows definitely and conclusively the
extent to which the Oklahoma guar
anty law is Matching more banks than
the state has any earthly need of or
use for, and also because it puts clear
ly before the eyes of every fair man
;he fact that the law is actually slim
uldtluS5 lIlc ply llltIIl VI stpfobib t''iN' iii-
possible rates of interest In order to
attract deposits.
IF you think that any bank can
afford to pay per cent interest on
time deposits without taking rash and
indefensble chances with the money of
the depositors, then refer the PROPOSE
ton to any banker or set of bankers
anywhere in America outside of Okla
homa. You will get but one answer,
and that is that the proposition is abb
surd and impossible.
",rhere are pointed evidences of
alarm on this score in the minds of
the men who composed the state adj
ministration.
Can't Refuse Charters.
"There's the significant action OF
the banking board and the bank COM
missioners in refusing to issue a
charter to an applicant for bank to
be organized in a town of insignificant
size and already supplied with at least
three banks.
"Then there's the ruling of Judge
Houston of the district court of Logan
county, who, when the parties who had
been denied a charter. brought man
damus proceeding, decided that the