Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1908-11-14
10 INSURE DEPOSITS
Minnesota Bankers Have Plan
to Protect Their De-
positors.
AN INDEPENDENT INSPECTION
District Associations, Including Country
Banks, Adopt the Idea - California
Already Has Successful System in
Operation - Minneapolis Idea.
AN INDEPENDENT INSPECTION
District Associations, Including Country

Minneapolis, Nov. 14-Wihin two
months there will be in operation
among the country banks Of Minnesota
a new plan for the protection of bank
deposits. 1t is a plan devised by bank
ers instead of by politicians, and those
who are fathering it firmly believe that
it will actually achieve all the benefic-
ial results which were promised by the
advocates of the bank guarantee
scheme. Turnout the recent campaign,
plans for the new idea have been
quietly carried forward.
w. =. Willard, cashier of the First
National bank of Mankato, was In Min
neapolis yesterday. He is chairman of
a committee appointed last spring by
the bankers of the Second congression-
al district of Minnesota to organize the
banks in that district for the operation
Of an Independent system of examina-
ton along the line of that now in oper-
alton in the twin cities. Sickness in
to some extent. but it is probable that
the first of the new year will see the
Independent bank examination under
way in the Second district
Banks Are Protected.
The banks, of the twin cities were
among the first in the country TO adopt
the plan of having an independent eX-
animation and this has been in opera
ton since Feb. /, 1906, in charge of p.
NJ. Kerst, former state public examiner
There are seven strong district groups
of banks outside the twin cities and 1t
is believed that the plan of the Second
district will be adopted by all of them
within a short time.
simultaneously with the appointment
of tho committee by the second dis
trict bankers in Minnesota, the same
plan was being discussed by California
bankers, resulting there in the forma-
ton of the California; State Clearing
House association.
The methods followed in the organi-
cation and operation of this, pioneer as
ISOLATION will probably be largely fol-
lowed in Minnesota.
In California.
California was divided into eleven
districts, and the banks in each dis
trict held meetings and elected dis
trict committees and each district Sc
lected representa- to central
board. This board convened. and after
careful consideration adopted a con-
stitution which forms the working
basis of the California State: Clearing
House association.
The purpose Of this California assoc
citation is set forth in an extract from
it's constitution, which reads:
The objects of this association are:
To improve and strengthen the banking
system of this state; to prevent inn
proper or unsafe conduct upon the part
Of any bank within the state; to pro-
vide a system Of thorough and COM
plete examinations into the affairs Of
every banking corporation Or individ-
ual banker belonging to this associa-
ton by expert examiners, and generally
to safeguard the common interests OF
he banks and the public.
Failure Creates Unrest.
A bank failure not only creates I'M
'est and skaters the confidence of the
people, but it temporarily eliminates
he liquid assets of great number.
Business enterprises are upset, and a
whole community is demoralized. While
he individual depositor suffers direct
" the burden Of every failure is
brown upon the solvent banks of the
1t is to obviate this that the bank
rs are combining for their own pro-
ection, and in protecting themselves
hey are Offering the greatest protec-
ion to the public.
The projected system Of examina-
ions will be so thorough that it will
,e practically impossible for a bank
o dissipate its assets sufficiently to in
ure depositors before it is checked by
he examiners Every bank in the state
s eligible to membership in the asso-
iation, but only those which can sat-
sfactorily pass the most rigid exam
nation of their affairs may retain
membership.
MAGNEss PLEADS NOT GUILTY.