Willmar tribune. [volume] (Willmar, Minn.) 1895-1931, 1908-09-23
Oklahoma's Bank Guarantee.
Mr.. O. ]. Fleming. a national

Mr.. O. j. Fleming. national
banker of Enid. Okla. makes the
following reply to Nebraska bank
er, who asks for information in re-
gard to the operation of the Okla
homa plan:
Enid, Oklahoma. June 26, 1908.
Il have your letter of June q, in
quiring in regard to the new qua
ranty deposit law of Oklahoma,
which took effect in our state in
February last. and in answer to
same will say that it is my under.
standing that the banks that have
avaiIed themselves Of the benefits
of the guaranty deposit law have
increased their deposits something
over two millions of dollars since
the law went into effect. l do not
know how much the unsercued
banks have lost during the same
time, but understand that their de-
posits have decreased from half a
million to million dollars in the
same length of time.
In reference to the bank at COL
gate, Okla, that was recently
closed by the banking board Of our
state, am reliably informed that
the officers had loaned the funds of
the bank contrary to law and had
done many things not authorized
under the state banking law, and
that the board had good grounds
for closing them.
1t is true that the depositors
were Immediately paid by the state
banking board and that the officers
of the institution are now under ar
rest for violating the state banking
law.
| also understand that the de-
positors' guaranty fund will be re-
imbursed out Of the assets of the
failed bank, for all the money used
in paying off the deposits and that,
as matter of fact, the depositors'
guaranty fund will not be depleted
on account of the failure of this
bank.
You asked me to give my opinion
of the new banking law and how it
affected our business. In answer
to same will say that the deposits
of the Enid National bank have in
creased from $500 600 at the time
the law took effect to over $500, 900
at the present time and it is my
opinion that large majority Of
the increased deposits have come to
US through the good effects of the
new guaranty deposit law of our
state.
! l could give you many instances
of individuals who have made de-
posits that l know came directly
from the effects of this law.
One man came into our bank with
an ordinary shoe box. He brought
the same into the private office of
our bank and asked US to open the
same and count the contents. We
found the sum of 81 ,45O done up in
little rolls of 500 each, tied with
an ordinary string. This money
bore all the evidences of having
been buried.
| Upon another occasion, farmer
sold his farm for $4,000 cash, and
at the time of sale he came into our
bank and was intending to take the
proceeds of the sale all in cash.
After l explained to him the new
banking law of Oklahoma which
gave to depositors a protection not
afforded by any other state, of
which he had never heard, he i'm
mediate'y concluded to leave his
money on deposit with us. The
amount is still on deposit in our
bank at this time.
On another occasion, widow
sold her farm in our county and re-
moved to Colorado. She said she
desired to have her money left with
us, as she knew the banks of Okla
homa were under the new guaranty
deposit law of the state. She felt
perfectly satisfied with the protec-
ton offered by the new banking
law and would only draw upon her
account when actually needed.
We could multiply instances of
the same character almost without
number, but hardly think it neces-
sary to give additional ones.
l am one of the national bankers
who have availed myself of the
benefit of the depositors' guaranty
law of our state and feel that it is
the best move that we have ever
made since we have been in the
banking business.
There was no particular reason
why our deposits should increase so
rapidly as our city has had only a
steady growth, no boom of any
kind, and no unusual deposits of
any size.
| believe the banking business to
be an honorable business, and if
conducted according to law, there
will never be a failure of either a
state or national bank, and as long
as banks are conducted along these
IECTIOM DETI1