Tonopah daily bonanza. [volume] (Tonopah, Nev.) 1906-1929, 1908-10-04

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from loss and making the private
fortunes of bank stockholders to an
amount equal to the par value of
their stock subject to execution on
the banks defaulting its obliga-
tons. Republican State Platform.
eve are in favor of sound bank
ing laws and we hereby pledge our
representatives in the next legisla-
ture to the passage of law provid-
ing for a guarantee fund for deposit
tors and containing the salient fea-
lures of the Oklahoma banking act.
Democratic State Platform.
The above two planks specifically
define the attitude of the Republican
and Democratic parties in Nevada on
the question of banking law to be
enacted at the next legislature.
The Republican plank would pre-
vent the organization of new banks
hereafter in the state without the ap-
plicants for a charter were able to
show to the satisfaction of the
proper state officials that the re-
sources back of the proposed bank,
represented by the amount of capt.
tai actually subscribed and paid up
and the private resources of the
shareholders in addition thereto,
which would be subject to execution
in the event of the banks defaulting
it's liabilities, are reasonably ade-
quate to guarantee depositors from
loss. With such law in force no
new bank could be started without
there were substantial resources
back of it.
The law, also, would make every
shareholder in any existing state
bank personally liable, in the event
of the banks not being able to meet
it's obligations to it's depositors, for
a sum equal to the par value of his
stock. This is in line with the ma
tional banking act except that under
the national banking act a stock
holder is personally liable for twice
the par value of his stock. 1t is
worthy of note in this respect that in
the thirty years operation Of the ma
tional banking law the loss to de-
positors through the failure of ma
tional banks has been less than one
twentieth of l per cent, or practi-
cally negligible fraction taken as a
whole
The Democratic state platform pre-
sents the Oklahoma bank law as a
model for this state and pledges the
legislative nominees of that party to
the passage of law in Nevada con-
tanning the salient features of that
act.
This is very important subject
and the people of the state should be
advised with regard not only to the
merits and demerits of the Oklahoma
banking law but with respect to Its
probable effect if enacted upon bank
ing conditions in this state.
The Oklahoma act provides that
every bank in the state is liable tc
make good Immediately in cash the
demands of depositors upon any de-
faulting bank in the state; aftel
which the banks must take theil
chances of reimbursement from wha
available assets the defaulting banl
may have Theoretically the propo
sition looks very good from the de
: positors' standpoint. In Oklahoma
only one bank has failed since tn
enactment of the law and deposition
received their money within ten day
after the bank closed its doors. TIL
defaulting bank, however, had onl
$4,000 of deposits originally an
after exhausting its available cas-
the other banks only had to make u
$4,000. This very small failur
can not be considered as any ties
whatever of the merits or dement's Q
the act.
Mr.. Bryan, in his campaign, ha
advanced the Oklahoma act as on
that should generally be enacted b
both the government, in respect t
national banks, and by states wit
respect to state banks. His advocac
of the measure has focused after
tion upon it to such an extent ths
it has been subjected to a ver
searching analysis. The best an
most experienced minds of the coul
try have taken issue with him on til
act and pointed out very clearly til
positive dangers that lie back of /
1t has been shown that:
Such law makes sound, conser
alive, well conducted banks r
sponsible for the losses of mi
, managed or fraudulent banks, ov,
which they have no control or supe
vision and possess no intimate meal