Omaha daily bee., 1908-11-01
Oklahoma Wildcat Banking and Bryan Guaranty Plan

by reason Of the wildcat banking which
has developed and which was ,satcipatcd
In Oklahoma, banks with a $4,000 paid-up
capital, and a large reserve fund on hand.
distributed their reserve fund and reduced
their capital stock to $1,000, thereby limit
ing their liability as stockholders to the
minimum. In other words. you formerly
had your money in a bank with a 100000
capital end reserve fund as security; YOU
now have a bank with a $4,000 capital and
no reserve fund. The reason OF this Is
because conservative bankers who had to
come under the law made up their minds
20 only be liable for the smallest possible
amount for they are obliged to stand good
for every other fellows banking ability
and deposits.
What does the republican party offer?
United states postal savings banks. Let
us amend the state laws so that care be
exercised in granting bank charters. Cap
ital must be paid in full. Upon failure OF
a bank, assess the 100 cents on the dollar
provided for by our constitution against
the stock and file with the clerk Of the
district court a list of stockholders, which
shall operate as a lien on the property
Of the stockholder-the same as a judg-
ment. Require bank examiners to give
ample bonds, and any negligence or failure
70 do their duty shall make them and their
bondsmen lab for all damages sustained
by depositors. Wine up the affairs OF the
bank the same as IL a retail merchant or
manufactures failed by selling the assets
at once and not wait five years before
bringing action against the stockholders
for their liability on stock.
Banking is a business proposition like
anything else and the man who starts a
bank should be held liable on his stock
the same as il he embarked in a commercial
business, and the banks affairs should be
wound up at once as in a mercantile fail
ure.
Some comparison has been made that
guaranteeing bank deposits is like insur-
ance. Not so. No insurance company.
either fire, accident or sick benefit, would
embark in the wholesale business Of insur-
ing frame, stone, brick and steel buildings
at the same rate of premium. A different
rate is placed upon an iron foundry or
cement factory than Upon a dry goods
store, or a parrafine or oil works. But in
Oklahoma any one can become a banker
and get the benefit of the bank guaranty
fund.
A life or sick benefit insurance company
does not take in every person who makes
application. The risks are selected, and
those who fail to pass the medical exami-
nation are rejected as dangerous. Okla
homa allows any one to open a bank mot
withstanding the banking board has re-
fused charters, the supreme court said I'M
der the law they can come in and do bust
ness).
Insurance business is conducted on safe
and conservative lines. OF course, If there
is a general conflagration like the Chicago
fire, or San Francisco earthquake, many
insurance companies will go broke. some
pay 80 cents on thes dollar and some i'm
full. And If there is a general panic in
Oklahoma or a break in a chain of banks
having 100000 of deposits fail. the 1-cent
guaranty fund will not pay off but a very
small amount or per cent.
The people should think this over care
fully before being lead astray by the
oracles and magicians of democracy. We
think strict state laws will overcome much
OF the trouble in the minds of the people,
and that a postal savings bank is the
proper thing to protect the depositors. Only
three democratic United States senator's
voted for the postal savings bank bill in
troduced. How then, does the democratic
party expect to give the public the relief
set forth in their platform?
1t Is like the 16 to l. free trade, military
ism, Aguinaldo, the second George Wash
ington, the crime of 1878 and other false
doctrines and predictions of the democratic
party. p. E. H..