, 1908-03-13
Terma Of Subscription.
IT'S WORKING OUT.

III Is not proDdDle that THIS session
of congress will take any action what
ever on the deposit guarantee matter,
but whether this congress or any 9th
er congress takes action, II is coming.
The Oklahoma law has not only forced
practically all the national banks OF
that state to come In under its pro-
visions. but 1t forced Kansas to pass a
similar act. The Kansas act will, in
turn, force Nebraska, Missouri and
other states and they will force others
until the nation is covered.
The last number OF the Saturday Ev-
ening Post had an excellent article on
the subject. In conclusion, 1t said:
The merchants l have met in Okla
homa, and | have questioned hundreds
OF them, TO a mar are pleased with ok.
lahoma's new law. One of them.
speaking practically for all, had this
TO say: Most merchants, twice a
year at least, need to borrow money to
discount their bills. Ordinarily we can
borrow money for from eight to ten
per cent per annum, n by discount
ing our bills make from two to three
times this rate of interest. In fact, the
discount that a retail merchant takes
is a big part of his net profit. If we
a borrow from our home banker and
discount with the wholesale man In
Kansas City, or ST. Louis, or Chicago.
or New York, this strengthens our
credit. Credit helps US to extend
capital ma T., mako mora nnney than
# we depended upon our capital alone
The busy bees of business-travel.
ing men-are now thick in Oklahoma.
They all report business good.
Before talking with Governor Has
kell | had also talked with many bank
ers throughout Oklahoma.
Il had found that what Governor
Haskell had said in relation to how the
bankers liked the new law was correct
Nearly all of the state banks like the
law. Many of The national banks in
Oklahoma like the law. Many of the
bankers think that, instead OF an as
sessment of a straight one per cent
of the average daily deposits right hot
off the bat, they should be compelled
to put in Gas is now the law in Kan
sas) only one-ifth of n per cent each
year. Still, most of the bankers in
Oklahoma on whom l called would
rather have the present guarantee law
whereby they must pay out one per
cent of their average annual deposits,
instead of having no guarantee law
whatsoever. One bankers opinion,
which Is practically the opinion of
many bankers, is that this is the best
banking law in the United States to-
bankers what the big insurance com
panies provide for the merchant-in-
suranoe If the people feel that the
banks are secure they will put their
money in the banks instead of keeping
1t in their pockets. Our deposits will
be much larger. We can, furthermore,
loan with safety a heavier percentage
of our deposits because we need not
be afraid OF a run The amount Of
interest that we can make from addi-
tional loans, that we can make with
greater safety, will many times yer
pay this tax which we pay for insur-
ance.'
In a nutshell, the people of Okla
homa who are not bankers are pleased
with their new banking law; those WAC
have state banks for the most part are
pleased With 1t, and they are the ones
who must pay the tax. Many of the
national banks are kicking about the
law, but,-as Governor Haskell says,
they will have to come in"
Not long since The Republican had
some excellent articles from Wyoming
bankers on the subject of a guarantee
of deposits. They were favorable 20
such a plan. The general opinion ap-
pears to be that the great city banks
will oppose any guarantee, as they be.
lieve that absolute safety in the mat
ter of deposits will detract from their
business to the advantage of the sinai.
Ter banker.
OF those who advocated a govern
ment guarantee, nom wrote more ably
nor scundly than President NJ. r. Col.
Inns Of the Douglas National bank. Re
Gently he addressed a letter to his Chi
cago correspondent on the subject, a
copy of which is published elsewhere
in The Republican.