Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-01-25
Provision Of oklahoma Law May
Be incorporated in National
Statutes
STATE BANKS UNDER COVER
Arranging Depos is to Comply With
New State LAWN ationa lnstitu
tons May Demand Same Regulations
Under the Law-Attenton Drawn to
Congress.

Washington, Jan. 2o.-There Is some
likelihood that the demand for govern
ment guarantee of bank deposits may
become so strong before the adjourn
ment of this session of congress as to
compel legislative action. The situa-
ton in oklahoma is already acute, and
is spreading to neighboring states.
The constitution of oklahoma pro-
vides for this guarantee of all state
banks in the border counties of the
new state are reaching out and getting
zens of Texas. on the south, and KAN
sas, on the north. The state banks of
both Texas and Kansas are in furry
and are asking for help This help in
Kansas is to be- given almost at once.
A special session of the legislature has
been called to consider another matter,
but it will almost certainly extend the
same guarantee over Kansas state
banks that is provided such banks in
Oklahoma. and Texas, it is said, will
do the same thing. altho no special
session of the legislature has been
called Should Kansas enact such
law, it would at once affect bankers IN
the border counties of Missouri and
Nebraska, and probably make the
guarantee of state bank deposits
live issue in those states, and thus the
question seems likely TO be taken up
by a few states at a time, until it may
embrace prac tically the whole coun-
try.
Meanwhile the national banks are at
a disadvantage. These banks in Ok
lahoma are anxious to get up guar
antee fund of their own. independently
of the state law. and have written the
controller of the currency asking him
If such procedure would be lawful.
To this the controller has replied that
the question can only be tested in the
courts. there being no precedents, but
that his office will hold it to be UNI
lawful until reversed by the attorney
general or the courts, The national
banks of Oklahoma, not being able to
guarantee deposits. will obviously be
at great disadvantage. and will suf-
fer tremendously. And this will be
the case in Kansas the moment sim
liar law is made tor that state.
The situation is being considered bye
a number of members of congress- and
will be depended upon to make senti-
ment in favor of law of congress
guaranteeing deposits in national
banks, the same as they are now guar
anteed In state banks in Oklahoma.
Said northwestern member of con-
gress to The Journal correspondent
today: IF Kansas passes a bill guar
anteeing deposits in state banks. under
produced by the law in
Oklahoma, the states of Missouri and
Nebraska will be compelled, in self in
terest to do the same thing; and Il
these states act, Iowa and South Da-
kota must follow suit, ard so in time
the pressure will be brought to bear on
North Dakota and Minnesota, and in
turn it will affect all the states. Any
such movement as this will so cripple
national banks In the states insurinS
state deposits as to compel congress to
act. whether it wants to do so or not.
With the deposits of state banks guar
anteed in Oklahoma and Kansas, as
they will certainly be this year, the ma
tional banks there will almost be put
out of business unless the government
should give them the same safeguards.
This is question interesting every
national bank in the northwest. and in
time it will interest every national
bank in the country. 1t isn't Il ques-
ton of policy, to be tossed back and
forth in congress as gentlemen on OPP
posing sides spin one fine theory of
finance after another, but a question
intensely practical in its character and
demanding prompt attention.