Ottumwa tri-weekly courier. [volume] (Ottumwa, Iowa) 1903-1916, 1908-09-15

you at any time on demand. The state
of Missouri enacted a law wherein
the state reserves the right to make
examinations of every institution or
individual using the name of bank or
banker in connection with their bust
ness. The tendency of banking In
Iowa has been toward a lessening of
the security Of the depositor In the
last few years. In this state formerly |
state banks could be organized with a |
capital of $4,000 or over, but in re-
cent years the state has enacted laws
allowing the organization of savings
banks with a capital of $4,000, and
limiting their deposits to ten times
that amount. However, the banker, J
ever alert to the idea of big dividends,
got busy and procured an amendment
| to the law allowing deposits of TWEEN
ty times the capital; thus you will OBJ
serve that the security to the depos-
itor is gradually lessened, while the
deposits are gradually increased. The
establishment Of banks within bank
is another abuse. No better example
of this kind can be given than that
1
to the closing of the John R. Walsh
Chicago National bank less than two
years ago, and which has since
caused the state of Iowa to at times
make examinations of the banks Of
this character.
Demand More Security.
"The lessening Of securities and
the above abuse has led to demand
on the part of the individual deposit
or for security when he deposits his
money. In this he asks for nothing
more than the government, state and
nation has demanded, and in this the
state of Oklahoma has taken the lead
with law compelling it's banks to
create a fund, to be placed In the
hands of bank commissioner, to pay
: the depositors Of any insolvent bank,
and after doing SO to proceed to re-
alize on the assets of the insolvent
bank as in case Of any other banF
and as fast as the assets are realized
on, to reimburse the bank commits
sioner or guarantee fund. The legisla-
ture, recognizing that they could not
regulate national banks, provided in
the law that the national banks could
at their option come in and accept the
benefits Of that law by paying in their
tax along with the other banks. I'm
der this arrangement, in addition to
all state banks, fifty-four national
: banks had accepted the benefits of
the law and 211 national banks had
not done so. That the people were
r alive to the situation and that they
: wanted something, is best proven by
t the fact that during the four months
: from February TO No If this year
Q while the law was fnlKSrce the guar
J. anteed banks had gained in individual
a deposits approximately four millions
: of dollars. During the same period
n the national banks that did not accept
e the benefits of the law, lost in indi
: vidual deposits approximately twelve
r hundred thousand dollars. Thus it is
i proven that the people think it gooG
s thing to have their deposits guaran
= teed.
= Bankers Stand in Own Light.
II "That the national banker, too, i:
demanding this thing, is best evi
}. denced by the fact that owing to the
1t lack Of such law for the use of ma
e tional banks during the month of Aug
r. ust in the state of Oklahoma sixteel
If national banks surrendered their ma
e. tional charters and took out stat
s charters in their stead. The peopl'
ID are demanding law of this charac
e ter The plan has assumed consider
If able proportions under the Leadership
r. of w. ]. Bryan and is demanded b.
d the Democratic platform adopted a
Denver, wherein they use these words
e. we pledge ourselves to legislation b.
" which the national banks shall be re
uuired to establish a guarantee fun
e for the prompt payment Of the deposit
: ors of any insolvent bank. That tn
plan is not a Democratic measur
alone and for the use Of Democrat
only, but for the use of all the peopl
is shown by the fact that the Republ
can state convention recently he'll
in Kansas, declared for the same plar
have no criticism to offer to m
banker friends, and only charity t
him, for the reason that think he
standing in his own light in his oppt
sition to the plan. Time will not pc
nit me to go into this matter q
greater length at this time. Howeve
/ desire to say in closing that tn
greatest argument that has ever bee
presented Tor this plan since IL Ofli
mated is the fact that it will max
all banks safe. My banker frien
seems to be fearful of his brothe
banker across the street; fearful thu
he will be called upon in measu1
to pay for his defaulting brothe
However, the necessity of law
this character will carry with it SON
plan for a drastic examination {
banks and it will make every banke
to greater or less extent intereste
in the conduct of his neighbor acros
the way"
At conclusion of his address, M
Weber was greeted with hearty a
plause. The regular business bus
ness of the convention was then take
up.
Ann