The Norfolk weekly news-journal., 1909-07-16
CLEARING HOUSE
FOR the BANKS
NEBRASKA BANKERS PLAN VOL
UNTARY FORM OF GUARANTY.
IN ANSWER TO POPULAR cLAMoR
c. e. Burnham Of Norfolk, President
OF the State Bankers Association,
Finds Country Bankers Ready to
Join New Associa tlon.


Omaha July ia statewide clear
ing house among banks to guarantee
security to depositors Is the latest
plan proposed by the bankers OF Me-
braska. This plan has been decided
upon by large number of the banks
and 1t Is to be put into operation in
the near future. 1t is contended that
II will fill all the needs and demands
of state guaranty law. II Is to take
in every bank that desires to affiliate
and can pass the required examna-
ton.
The idea OF a statewide clearing
house comes by reason of the clamor
for state law that would require
banks to guarantee the depositors the
return OF their money at such times
as they might desire to withdraw the
same. Such law was passed by the
last Nebraska legislature, but II Is tied
up in the courts by injunction, and re-
CARELESS of the decision of the court
of original jurisdiction will go to the
court of last resort for final adjudica-
ton. 1t Is figured that the suit will be
in court for at least two years and
that something ought to be done to
stay the clamor that is going up from
the rural districts, where the guaranty
law has the most Of its friends.
1t is the opinion of Omaha bankers
and others that the organization OF a
statewide clearing house will ward OF
the threat Of Governor Shallenberger
to call the Nebraska Legislature In
special session for the purpose OF pass-
ing a new guaranty law and that
thereby the state will be saved a sum
that would run into the hundreds Of
thousands Of dollars and at the same
time a plan will be adopted that will
be equally as good II not better than
the most carefully prepared guaranty
law that could be drawn and enacted.
President Burnham, OF the Nebraska
State Bankers association, favors the
plan and states that after correspond
ing with the majority of the bankers
in the smaller towns OF the state he is
of the opinion that It's adoption will
be without any marked opposition. It's
workings will be similar to the work.
ings of the clearing house association
that takes in the large cities. Depos-
/ its in one bank of the association will
have the guarantee of each and every
other bank that is in the organization
and in this way every dollar of de-
posts will have the guarantee of mill
ions Of dollars.
Speaking of the plan. President
Burnham said Eventually the plan
may evolve itself into voluntary In
surance of bank deposits, but for the
present it contemplates the employ
ment of special examiners, supplement-
ing the supervision of the national and
state examiners, thereby increasing
the confidence Of the depositors.
Periodically the examiners will
make sworn statements as TO the con-
dition Of the banks in the association
! and these will be attested by the reg
ular officials.
THE recent litigation over the new
guaranty law and the impression that
friends of the law have sent out to
the effect that the banks were unwill.
ing to protect depositors cannot go
unnoticed by the bankers. We are
bound to take steps to throw increased
safeguards about the business and to
assure our depositors that we want to
protect their every interest"