The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1908-01-10
NOT RIGHT KIND.
Continued from Page one.)


guaranty fund. One year later. and
annually thereafter, each bank sub
Ject to the provisions of the act is re-
quired to. report to the bank commits
sloner the amount of its daily average
deposits for the preceding year, and
II said deposits are in excess of the
amount upon which the 1 per cent
De accompanied by additional funds
to equal 1 per cent of the excess, and
TINS shall be added to the guaranty
fund. ct does not provide for aay
draw OK in case the deposits fal.
on, hoWever.) In case the guaranty
1und is depleted from any cause, the
| banking board can make another levy
| OF sufficient size to restore it to the
| one per cent minimum.
Section says that banks organized
subsequent to the passage of the law
must pay in per cent of their capita;
STOCK to the fund, and this per cent
is subject to adjustment at the end oil
the year on the basis of the deposits
for the year.
Section provides that national
banks can come in under the state
guaranty deposit law on the same
terms as state banks, and that if, at
some future time, there is a national
guaranty deposit law, they may with
draw from the state fund all but o
per cent of what they have deposited.
The 10 per cent is the states rake Off
Section 5 provides that whenever a
bank fails or becomes ms olvent the
bank commissioners may take charge,
and wind up its affairs, enforcing the
liability of stockholders, directors and
officers.
Section 6 says that after the bank
commissioner takes charge of a failed
bank. he shall pay depositors in full.
If the funds of the bank or assets
quickly convertible into cash are not
sufficient the state banking board shall
furnish the necessary balance from the
guaranty fund. If necessary, an ao-
ditional assessment can be made OF.
the banks. The state then takes 4
first lien on all the bank assets.
Section provides how the bank
commissioner shall dispose Of the bank
assets and pay off the debts
Section s relates to the inspection
of banks twice year by bank ex-
aminers Under this section, the state
bank examiners are authorized to in
spect national banks twice year, the
same as state banks.
Section provides that the salary of
the bank commissioner shall be $25OO
year and his assistants $1,000 and
travelling expenses.
Section 10 says that the bank COM
missioner shall deliver to each bank
that has complied with the provisions
OF the act Can Inference that it Is
optional with the banks whether they
comply or not) a certificate stating
that Its deposits are guaranteed, and
can advertise that fact. Without this
certificate, 1t is a felony to advertise
thus.
Section II reverts back to the
method Of handling the affairs of
closed banks. 1t gives the stockhoId-
erS the right to reorganize a failed
bank and resume business, under re-
strictfons to be enforced by the bank
commissioner.
Section IL requires that a director
must hold $500 worth of clear stock
in the bank.
officer who steals or misapplies funds
shall be guilty Of larceny
Section Ia prohibits active manag-
ing officers of bank from borrowing,
indirectly or directly, any money from
the bank with which he is connected.
amount of cash which a bank shall
be required to keep on hand.
Section 16 limits the amount of
money which may be loaned to
any one individual, firm or corpora
ton by a bank.
Section IT provides that any bank
which violates the provisions of the
act shall be closed up by the bank
commissioner, and its charter revoked.
Section Is says: ANY officer of any
bank found by the bank commission
er to be dishonest, reckless or in
NOAAA 1ii1iAi NC iOiiiOfCO Ii OlIl OIL
flee by the board Of directors of the
back of which he is an officer, on the
written order of the bank commits
sioner. This makes the bank COM
missioner the absolute monarch of the
banking situation. It Is probably in
tended to choke off wild cat banks
Section 9 says that the expenses
of the guaranty fund by the state
banking board shall be paid out of
the fund itself.
Sections 20 and 81 are the repeal
and enactment sections