The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1908-01-19
THE OKLAHOMA EXPERIMENT.

The OKLAHOMA E&PE NJ EN-
Oklahoma's law under which the new
state guarantees deposits in state banks
does not go into operation until next
month. bit its effects have already
been felt. In his annual message to
the Kansas legislature, Governor Hoch
says that the demand for similar leg
islation in Kansas is Overwhelming. ="
1t is likely that Kansas Will follow the
example of Oklahoma and place the
statute suggested by Mr.. Bryan upon
its books The demand for it comes
from the bankers as well as the peo-
pie.
The bankers are interested because
those whose financial institutions are
on or near the Kansas Oklahoma line
have been losing deposits to the Okla
homa banks. 1t has been pointed out
that during territorial days residents
of Oklahoma were afraid of their banks.
Therefore they deposited their money
with the Kansans, and especially with
those who are on or near the line The
first result of the state guarantee law
has been the withdrawal of those funds
from the neighboring state and the
placing of it in Oklahoma.
The statement is made, further. that
some Kansans are depositing money in
Oklahoma. The Oklahoma statute fixes
tax Of 1 per cent on the average
/ daily deposits in the state banks for
the purpose of establishing the guaran-
tee fund and to pay the expenses of a
banking commission composed of the
governor, lieutenant governor, presi-
state treasurer and state auditor This
board appoints a bank commissioner,
who must not less than twice a year
examine all Of the state banks. Any
national bank may avail its depositors
of the protection of the fund on appli-
cation to the commission and on agree-
ment to comply with the provisions of
the law.
Section of the law is as follows:
In the event that the bank commits
sioner shall take possession of any
| bank which is subject TO the provis-
ions of this act depositors of said bank
shall be paid in full, and when the cash
| available or that can be made imme-
diately available of said bank is in
sufficient to discharge its obligations to
depositors. the said banking board shall
draw from the depOsitors' guaranty
fund and from additional assessments,
if required, as provided in section 3, the
amount necessary to make up the de-
fciency and the state shall have for
the benefit of the depositors' guaranty
fund. a first lien upon the assets of said
bank and all liabilities against the
stockholders, officers and directors of
said bank. and AGAINST all other per-
sons. corporations or firms. Such la
bilities may be enforced by the state
for the benefit of the depositors' guar
anty fund"
Another provision prohibits an active
managing officer of bank from Dor
rowing any money whatever from it,
Any officer taking such a loan, or any
officer authorizing it is deemed guilty
of larceny. The statute requires banks
in towns of less than $500 population
to maintain a cash reserve equal to 20
per cent of the total deposits. In towns
of more than $500, the reserves must
amount to % per cent. Two-thirds of
the reserve, however, may consist of
balances due from solvent banks Sc
commission. On the order of the bank
commissioner. the officers or directors
of bank must remove any officer who
has been found to be dishonest. reck-
less or incompetent