Bisbee daily review., 1908-09-17
GUARANTY PLAN OKLAHOMA BANKS. MAKE DEPOSITS
There Is a Sense of Security In Running a Bank Under De-
 poSitorS Guaranty Law

Mir O. J. Fleming, a national banker of Enid, Okla, makes the following re- ply to a Nebraska banker, who asks for information in regard to the opera tion of the Oklahoma plan.
 Enid. Okla, June 26, 190S-I have your letter of June P, inquiring in regard to the new guaranty deposit law of Oklahoma, which took effect in our state in February last, and in an- swer to same will say that it is my understanding that the banks that have availed themselves of the bene- fits of the guaranty deposit law have increased their deposits something over two millions of dollars since the law went into effect 1 do not know how much the unsecured banks have lost during the same time, but under stand that their deposits have de creased from half a million to a million dollars in the same length of time
 In reference to the bank at Coalgate Okla, that was recently closed by the banking board of our state, am re liably informed that the officers had loaned the funds of the bank contrary to law and had done many things not i authorized under the state banking law, and that the board had good grounds for closing them.
 It is true that the depositors were immediately paid by the state banking board and that the officers of the in stitution are now under arrest for vio- lating the state banking Jaw.
 I also understand that the deposit ors' guaranty fund will be reimbursed out of the assets of the failed bank, for all the money used in paying of the deposits and that, as a matter of fact, the depositors' guaranty fund will not be depleted on account of the fail ure of this bank,
 You asked me to give you my opin- ion of the new banking law and how 1t affected our business. f~In answer to same will say that the deposits of the Enid National bank have increased from S400,000 at the time the law took effect to over s700,0O0 at the present time and it is my opinion that a large majority of the increased deposits have come to us through the good ef- fects of the new guaranty deposit law Of our state.
 could give you many instances or individuals who have made deposits that I know came directly from the effect of this law.
 One man came into our bank with an ordinary shoe box. He brought the same into the private office of our bank and asked us to open the same and count the contents. We found the sum of $1,450 done up in little rolls of $100 each, tied with an ordin- ary string. This money bore all the evidence of having been buried.
 Upon another occasion, farmer sold his farm for s4,S00 cash, and at the time of sale he came into our bank and was intending to take the proceeds of the sale all in cash. After ex- plained to him the new banking law of Oklahoma which gave to deposit ors protection not afforded by any other state, of which he had never heard, he Immediately concluded 10 leave his money on deposit with us The amount is still on deposit in our bank at this time.
 On another occasion, widow sold her farm in our county and removed to Colorado. She said she desired to have her money left with US as she knew the banks of Oklahoma were under the, new guaranty deposit law of the state. She felt perfectly satis- fled with the protection offered by the new banking law and would noty draw upon her account when actually need ed
 We could name a multitude of in- without number, but hardly think it stances of the same character almost necessary to give additional ones.
 I am one of the national bankers who have ayailed myself of the ben eft of the depositors' guaranty law of our state and feel that 1t is the best move that we have ever made since We have been in the banking busI- ness.
 There was no particular reason why our deposits should increase so rap idly as our city has not had a steady growth, no boom of any kind, and no unusual deposits of any size.
 believe the banking business to be an honorable business, and if conduct ed according to law, there will never be a failure of either a national or a state bank, and as long as banks are conducted along these lines, the bank CTS should be willing to stand for each | other and there would De no liability in doing so if the business Is conduct ed as it should be.
 If the bankers of our state are not
 
 of each other, can not for the life of ! me see how they could expect the de posits of the public to be left with them without any guaranty whatever, I if the bankers themselves can not trust each other.
 I feel certain that no banker will ever be called upon to pay any guar, anty for our business, and have faith ! in the banks Of our state being con- | dducted along similar lines that I will not be called upon to pay any of then short comings. With the supervision that the state banking board is giving the secured banks, together with the class of bankers that we have in the business, I feel quite sure that there will be no loss to the banks on ac. count of the depositors' guaranty law.
 There is sense of security in run 1 ming a bank under the depositors' ! guaranty law that there never was be fore, in this, that we know that no false rumors can be started affecting the banks that are under this new law. | The public knows full weIi that the i failure of any bank would not affect their deposits, hence, for that reason, along with many others, I think that the law is having good effect both upon the banks and the people that do business with them.
 We can loan large per cent of the l banks funds and feel perfectly safe in so doing, knowing full well that the tongue of the slanderer is hushed, and false report of the envious is stop T uko