Barton County democrat. [volume] (Great Bend, Kan.) 1885-1915, 1908-11-20
About Guaranteed Deposits

One Of the strongest arguments in
favor Of compulsory bank deposit
guarantee law we have read, is
the following taken from the Topeka
Capital:
"The state banks Of Oklahoma are
making a good deal Of capital out Of
the fact that their deposits are guar
They are reaching out 10 other
states for deposits on the strength
OF this law. They are coming up In
to Kansas and bidding for deposits o
the grounds that with a guaranty de-
post law and a guarantee fund held
by the state to reimburse depositors
in case Of bank failure, the money DE-
posted with them is absolutely safe.
Oklahoma is the only state having
law of this kind and the bankers
are taking advantage OF 1t.
One bank in Oklahoma claims to
have on deposit $4,000 Of Kansas
money nearly all belonging to Kan
sas farmers. Other banks are making
claims. Kansas bankers pretend to
have no knowledge of the Withdrawal
Of any money from this state for Ok,
lahoma banks. But the Oklahoma
banks are quick to see their advan-
tage and they are advertising gener-
ously in Kansas farm papers, telling
OF the safety of Oklahoma banks und
the guaranty law as compared with
banks in other states.
In the Farmers Mail and Breeze
eight Oklahoma state banks are run
ming regular weekly advertisements
calling attention to the guaranty law
These banks hold out alluring offers t
the depositor who is somewhat shaky
about banks anyhow. Here is the
way one of them reads:
-Four per cent paid on time depos-
its in bank that can't fail. The
guaranty fund of Oklahoma is back Q
us. Write for full information"
Here is another.
Bank deposits guaranteed by the
Oklahoma state guaranty fund. Your
money is absolutely safe. We pay
cent ON deposits subject to withdraw
al at any time"
These banks that are coming as
far north as Topeka to advertise for
deposits are the Oklahoma State banl
off Chickasha, the Oklahoma Stale
bank Of Muskogee, the Oklahoma Tru
company of MuskOgee, the Peoples
State bank of Muskogee, the Bank
of Claremore. Claremore, Okla; the
Farmers Bank and Trust company,
Claremore, the Bank of Stilwell, Still
we'll, Oklahoma.
All of these banks claim to have
received thousands of dollars of
Kansas deposits since the guaraI-
ty deposit law was enacted and be-
came effective in that state. They
also claim to have secured deposits
from many other surrounding states.
Their sole claim on deposits from 9th
er states having guaranty bank de-
post law in working order"
Here is the meat in the nut in the
case. A bank to do a successful bus.
iness must have money to loan. A
bank to be of benefit to the local.
ty in which it is located, must have
money to loan. Without a line of de
posts, its ability to lend is limited.
Therefore, If our people with money
to deposit, send their money to Ok
lahoma banks, it is handicaps to
home banks, but the depositor has
been safeguarded by the Oklahoma
law. Thus it would seem to us that
banker, depositor and borrower would
alike be benefited by a compulsory
law, even more so. than by the volun
tary law which the Capital support
ed in the recent campaign. In this
connection We beg leave to quote
Ralph Faxon's opinion of the guaran-
ty planks.
This paper has stood against the
ryanHaSkell national scheme of vol
untary guaranty, and againust the
party council scheme of involuntary
guaranty in Kansas, which is all II
bish, for there is no such thing {
involuntary guaranty" This is the
only plank of the Republican state
platform. The Telegram has opposed
and it never felt a single qualm of
conscience in opposing such a dan.
gerous proposition"
piann Tunino