The Birmingham age-herald., 1908-07-13
SENATOR DEN HAS
 NEW BANKING BILL
Provision Is Made for Protec-
 ton of State DepoSitorS
GUARANTEE FUND CREATED
Strong Effort Will Be Made To Enact the Bill at This Session of the Legislature-Bankers Object
 To Some of It's Features.

Atlanta, July 12.-(Special.) )-State Senator Deen of the Fifth district has now pending before the general assem- bly a banking bill which has caused no little discussion and which, 1t is said. a strong effort will be made to enact at the present session.
 Primarily the bill provides for the protection of depositors in state banks but there are many other important features in the measure relating to those institutions.
 For the protection of depositors the bill provides for the creation of state bank guarantee fund to be collected bv the state bank examiner. The amount to be paid by each state bank into this fund is one-half of l per cent of their average deposits for the three months preceding the time when the bill goes into effect-January next. If is further provided that the state hank examiner may call for an addi- tionai one-half of l per cent of the average deposits in case it is found necessary to meet the demands and in- tentions of the law.
 It is required that in case any state bank becomes insolvent, the bank ex- aminer or receiver shall pay off all depositors within 30 days of the date of his taking charge of the institution. When the banks assets are exhausted payment is to be completed from the guarantee fund. If the banks assets are slow of collection, the guarantee fund is to be used to pay off deposl- tors. and if the assets subsequently re- alized upon should warrant it, the guar antee fund is to be reimbursed. After this the remaining assets are to go to the creditors and then to the stock holders.
 It is made optional with the state bank examiner as to whether he snail accept or reject the assessment of any bank. and he is required to examine carefully into the standing, character and reports of the institution before he permits it to participate in the sys- tenn of protection to fits stockh elders. Banks which comply with the require ments of the act are to be furnish ed with a certificate to that effect. A further provision of the bill is that the state bank examiner, with the con- sent of the governor, may loan out the guarantee fund at interest upon good collateral, or may purchase with It such bonds as would be quickly con vertible into cash.
 One of the purposes of the bill in addition to protecting depositors in se k.-fxa ardi i'm a nd hidden money into the banks and into circulation. Senator Deen calculates that there is some s25, ,000 ,000 held out of circulation in Georgia, the greater part of which he is satisfied would find it's way into the banks if the de- positors were guaranteed against loss.
 The measure has met with much op- position from the bankers of the state, a number of whom appeared before the senate committee on banking and cur rency yesterday and stated their req sons for their adverse attitude.
 The principal objection which the bankers raise to the measure Is that it affords system of protection to the dishonest banker who. knowing that the depositors were protected by luHui WOuio lAOA 9SA NPiS SO fail. The hearing was quite an extend- ed one and bankers from various parts of the state joined in the discussion. The committee did not take any final action, but will have the measure up for another hearing before making a report to the senate.
 Senator Deen says that under the provisions of his bill all doubtful banks can be kept out of the protective sys- 10 ton of the bankers generally can hold