Daily press. [volume] (Newport News, Va.) 1896-current, 1908-08-28

will not bear the FISK wnich they ash
you to heir : : "
Experience Of ok,ahoma.
Fifth: The experience Of Okla,
homa furnishes conclusive proof thai
dc positors do rot feel that their mon
l ey Is safe in unsecured banks, On
the 18th Of December. 1897. the Okla
homa Legislature enacted a deposit
tors guarantee law. which became
operative February 4th, 1908. by the
pyovisiCns Of this law. all state banks,
and as many national banks AS de-
sire to avail themselves OF the law. are
taxed one per cent on their deposits
and the money TINS collected Is put
Into a guaranty fund. The banking
board IL authorized to make addition
al assessMents from time to' time to
keep the frad,np to this amoent, and
IL directed TO take posse sston Of any
insolvcnt hank. paw the depositors In
full and reimburse the fund by col
lect;ny the assets of the failed bank.
Five hundred and fifty-five banks. in
Guiding fiffy-four national, banks. had
come under the provisions OF this law
eli the 14th of last MAY. leaving but
2e5 unsecured banks tall natianaD in
the state. Statements are made by the
hanks in December and May. Be-
tween these periods the secured
banks gained in deposits $4237. 765.,
90, while the unsecured banks. all
national. showed a decrease in deposit
0! $1.1Oi. S07. sc. A large part of this
Increase represented money brought
from hiding or from without the state
but the decrease In the unsecured
hanks can only be explained IN one
way. A large Eumber OF depositOrs
Withdrew their money from the unse'
cnred banks. and deposited II In the
secured taaks. and this. too. in spite
OF the fact that IN order to prevent
! Withdrawals. the unsecured banks, IN
some instances. Offered higher rate
of interest than the secured banks
4! were permitted to pay: and 1t must
| be remembered also that the banks
, which suffered loss OF deposits
were all national hanks. And to make
It certain that the difference was
caused by the guaranty law. the So
cured national banks gained. while the
unsecured banks lost. While the
deposits were increasing in the suaran-
.teed banks OF Oklahoma. they were
failing In the state banks and trust
companies of Kansas--the decrease be-
ing $I.I53.O26.e7 between March 31st
; and June 18th.
| .criticisnn Cannot Change Facts
No amount OF criticism OF the tim,
id deposition can change the facts. the
people VINO deposit money want more
security than the laws at present give
them. They will change banks to
get more security. and. II necessary
they will send their money to ano'h
state.
| For MANY years efforts have been
made in Congress and in the various
states to secure law guaranteeing de'
posts but the Influence Of the great
lanking institutions has been suffi'
Gent to prevent action. Last fall. how,
ever, when the tunks by concerted
action suspended payments on cheeks
the deposftors were everywhere
brought TO realization Of the TACT
thar their deposits are in fact loans
payabie Oh demand under ordinary
circumstances. but payable at 4 the
will of the bank in emergencies. The
depositors suffered considerable
loss during the suspension Of Iny'
ments. and they have not forgotten the
lesson which they then learned. the
Democratic party. being more tree
than the Republican party to respond
to the needs of the masses Of the
people. inserted the following plank
in its national platform:
lvno fx saOyS lat ION
bv which the national banks shall DC
required to establish a guaranty fund
for the prompt payment of the depos'
tors Of any insolvcnt national bank
+ under an equitable system which shall
J he available to all state banking in
situtions wishing to use II"
! This principle has been applied In
Oklahoma and the results have been
very satisfactory. The average. an
tnral loss to ~d-posi:ors in rational
banks during the last forty years haa
been less than ,one-tenth OF one pei
scent of the deposits. and the loss q
the fund in Oklahoma under better
regulations and restrictions has been
absolutely nothing during the si'
months in which the Law has been IN
ioperation. =
| = Mr.. Taft Opposes System.
I The Republican platform Is silent
on the sabject, /. and the Republican
+, candidate not only does not iadvocatt
a compulsory system. but specificali!
land smPhstically opposes ii. He says:
The Democratic platform recon-
mends a tag upon national banks an,
,upoa such state banks as may come IN
i'm the nature CT enforced Insurance.
40 raise a guaranty fund to pay IN.
depositoss Of any bank which fails.
ADd then ne questions the right o.
|she sQyernnent to enact such law
Saying: ~ j-,,- 60 "a
How state banks can he included
IN such scheme under the consti
tuition Is left In the twilight zone Of
state rights and federalism. 50 FIRE
II