The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-01-28
THE DEBATE OPENS.
Senate Begins to Wrestle With Guar
anty Deposit Bill.


by motions in connection with the mi
nority reports on the several banking |
bills reported back by the committee |
Friday, the senate this morning boldly |
tackled the whole subject of a guar
anty bank deposit law by resolving it
self into committee of the whole. Sena-
tor Chapman in the chair, for the con-
sideration of bills under Special Or
ders.
Senator Quincy's bill, providing for
the security of depositors in the incor-
porated state banks of Kansas, Great
ing the State Bank Depositors' Guar
anty Fund of the state of Kansas, and
providing regulations therefor, senate
bill No 80, came first on the calendar
for consideration, and Senator Wag-
gener Immediately moved to amend the
first section by including trust COM
panies in the provisions of the bill
It was replied that the trust compan-
les are built on entirely different lines;
that they do all kinds of business but
banking, and try to do that, and that
it would be unjust to authorize them
to operate upon the same terms as
banks.
Waggener said: 1.-THE object of this
bill being to protect depositors, why
not all depositors? Have bank deposit
| tors any more sacred right TO prolec.
| ton than trust company depositors? If
| this measure is for the purpose OF
| building up favored class it is uncon-
| stitutional. 1t is, not to protect banks
| but to protect depositors and such a
| law as this would be extremely obnoxi-
| Gus to the people"
| Stewart asked why not bring in the
| building and loan associations also;
| they receive deposits. Getty inquired
| why, If the bill was to protect deposit
| tors, 1t is not to protect all deposl-
| tors.
| Waegener's amendment was adopted.
| The senator from Atchison then
moved another amendment to the same
section, providing that before any par
| ticipating bank or trust company shall
receive the benefits of this bill the
stockholders thereof shall sign an
agreement waving the limitations OF
| their liability under the law and as
suming the liabilities Of the bank"
| In an encounter between the senator
from Atchison and the senator from
| Saline over this proposition, Waggener
demanded Of Quincy: DO you oppose
| this?'
II oppose loading down the bill; that's
| what you are trying to do!' was the
answer.
"If we are to adopt the amendment
of the senator from Atchison. we might
as we'll strike out the enacting clause"
declared Young. You will never get
the signatures of all the stockholders
ito any such agreement. This amend
ment would make the bill absolutely
ineffective"
aWhy shouldn't the stockholders be
willing to sign such an agreement!
asked Waggener. THE fund Is SIMPLY
adding another security to depositors.
| ssDon't the senator from Atchlson
know that SO members of this senate
are not so silly as not to know what
this amendment means" said Ge.ty;
1T means that it would make the PHI
absolutely ineffective! me seH sth
from Wyandotte then launched forth
in an argument, covering the Whole
banking question, that occupied an
hours time. He discussed the action
of the banks during the recent panic
in holding back the. money OF deposl-
tors. 1t was an emergency measure,
4 he declared, designed to protect depos-
81 itors, and the people, who have come
to understand financial questions, &C
guessed. But are they gong 10 sno-
NIT to this every month"; the speaA0l
inquired. f
| his own observation, where a man Who
| anticipated the coming stringency ana
| thought he could make some good an
Investments when the. trouble arrived
saved his money and deposited 1t In q
bank When the crisis was on, the
bank would not pay out his money, pu!
fused 1t for it's own purposes poush'
in other banks with 1T.
..The day of individualism, so Tar as
banks are concerned. Is past asserleo
Senator Getty. If there is any 'i r. !,
is In your power you save that Danh
which NAV be in danger; you do II
every time, for your own preservation
He discussed the subject OF elastic cur
! rency and others pertinent to the ques-
| tion at great length and with ERECT.
Waggener declared that there is ar
agitation of the banking question II
Kansas at the present time that II
cruel and criminal he charseo II -
Quincy stated that the bill now pend
= ing was written before the recent panic
and at a time when he was IN MS rlsn
. mind. ~.
, senator from Atkinson:
5 "Ahout a wear ago." Quincy replied
Senator Noftzger closed his discus
sion of the bank bill at the noon hour
Senator Robertson inquired why, Il
ttha ckholders are made liable to the
r full extent for the deposits held py
e their bank, there is any need for
> state bank guaranty fund he hae
= been investigating matters retatlng te
r. banks and banking and had round {
4 | majority of the stock to be, held II
: some instances by big trust and guar
= anty companies. whom he termed
nominal stockholders; the minority o.
: the stock was held by farmers. wht
had invested all their surplus in TIT
venture. When a bank under thes'
| conditions fails, the nominal stock
!, holders lose but little. while the farm
i. er loses his all.
Il Waggener said the farmers SHOULD
| keep out of the banking business.
!. President Fitzgerald announced tina
| the Kansas Day banquet would be ell
in the basement of the capitol buildin,
| tomorrow evening, and that all Re
| publican senators are invited to at
tend.
The committee then rose. reported
e progress and asked leave to sit again
n after which the senate adjourned unit
o'clock.
y Senator Getty alluded to the histor.
l, in use in the Kansas schools by virtu
daf ton cf ba sta