Omaha daily bee., 1908-09-27

argument that weak banks would profit
by the fact that the solvent ones were
equally responsible for losses to depositors.
The banker in Oklahoma or the minor Of
fetal who goes wrong in the slightest de-
gree may have visited upon him swift
punishment SO that extraordinary risk is
involved in any attempt to do crooked
banking.
Text of Guarantee Law.
That part of the banking law providing
for the guarantee fund says, in section 1:
1.-The state banking board shall be COM
posed OF the governor, the lieutenant gov
ernor, the president of the board of agri-
culture, state treasurer and state auditor.
Said board shall have the supervision and
management Of the depositors guarantee
fund, hereafter provided for, and shall
have power to adopt all suitable rules and
regulations not inconsistent will the law
for the management of the same"
Section 2 Is the one which provides for
| assessment on bank deposits in order to
maintain a fund of at least / per cent OF
the deposits of the bank. In the event of
the fund becoming reduced below 1 per cent
assessments may be made at once to bring
the fund to the required amount.
For new banks with necessarily But linn
tied deposits, the capital stock is assessed
primarily in accordance with section g.
which follows:
Banks and trust companies organized
subsequent to the enactment OF this act
shall pay into the depositor's guarantee
fund 3 per cent of the amount of their
capital stock when they open for business
| which amount shall constitute a credit fund
subject to adjustment on the basis OF its
deposit as provided for other banks and
trust companies now existing at the end OF
one year. Provided. however. said 8 pei
cent payment shall not be required of new
banks and trust companies formed by thu
reorganization or consolidation of banks
and trust companies that have previously
complied with the terms OF this act"
Greater Idea is Planned.
It seems apparent from the reading OF
the succeeding section that the drawers
OF the new law had in mind the possibility
of the national blanks Of the country or
g~anizing under federal statute 10 guarantee
deposits. This section may suggest Mr.
Bryan's idea of a national issue on a de.
p~ositor's guaranty act.
Inasmuch as he is actually making a
campaign on such an issue, the charge that
he and Governor Haskell were authors Of
the Oklahoma law has some semblance OF
color. Section 4 reads:
Provided, That I'm the event nationa
hanks should be required by federal enact.
ment 10 pay assessment to any depositor'i
guaranty fund Of the federal government
and thereby the deposits in national banks
in this state should be guaranteed by virtue
OF federal laws. that the national banks
having availed themselves of the benefit
OF this act may withdraw therefrom and
have returned to them 30 per cent Of the
unused portion OF all assessments leviet
upon and paid by said banks"
Guarantees Fund First Lien.
Section 8 provides for the taking over o.
any bank by the bank commissioner
The guarantee fund is made a first lier
on all assets. This is dealt with in sectioI
{, as follows:
'In the event that the bank commissions
shall take possession Of any bank OF trus
company which is subject 20 the provision
OF this act. the depositors OF said bank o.
trust company shall be paid in full ant
when the cash available or that can b
made Immediately available OF said bank o.
trust company is insufficient to discharg,
its obligations TO depositors. the said bank
ing board shall draw from the depositori
guarantee fund and from additional assess
ments, II required, as provided In section :