The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1909-07-02

are taking advantage Of their having
no competition and are charging ex.
Ihorbltant rates OF interest. believing
that the hank commissioner will not
issue charters for additional banks in
their community on account OF lack Of
business to sustain additional banks
This fact has caused the banking
board 70 recommend 10 the bank com
missioner OK the state that a charter
to a second bank in any such com.
munity should be issued when con.
ditions are found TO be as above stat.
I ed.
The following letter on the subject
has been addressed 70 John J. Thomas.
Talihina, Okla, by Governor Haskell
Replying TO your letter OF the oath
instant. know you are one OF those
who understand that the oganization
OF state government in great state
like Oklahoma filed with a large and
aggressive population and extensive
business interests. Is a difficult task,
and takes time and earnest study to
get things going right. and it would
be very surprising II We did not find
IL necessary 70 cut and try until We
find the proper laws and rules neces.
sary 10 produce the best results.
The question Is Shall we issue
charter for a second bank In a town
as small as six hundred population,
and where the surrounding country is
only sparcely settled. and very little
banking business?
II understand that there Is one bank
already in your town with fifteen thou
sand dollars capital, and total of only
about twenty thousand dollars de.
posits You understand that when
the Oklahoma banking law was adopt.
ed. that those who circulated II all
over the United States said that the
law would stimulate reckless and un.
safe banking methods. and that little
banks would spring up at every cross
roads in the state until the unneces-
sary number Of banks would result in
numerous failures. and consequent
losses TO the depositors, and by reason
OF unstable conditions, would make
the banking law OF Oklahoma a farce
and a failure.
We have shown that these prophe
cies have not come true up to date,
but we have done so by rigidly enforc.
ing the law, and keeping the number
of banks limited to the reasonable re.
quirements of the people.
"Of course, We must not fail. how.
ever to keep a careful watch Of the
peoples side OF the question also. If
We limit the number OF banks too
closely, we have got to watch that the
existing bank does. not take advantage
of It's monopoly to unjustly oppress
the people by charging extravagant
and usurious rates Of interest. and to
prevent this abuse we have already
a usury Law inherited from the laws
existing IN Oklahoma Territory when
statehood began The substance Of
the Oklahoma Territory usury law
was that the legal rate OF interest was
seven per cent. except wherein the
parties by note OF contract in writing
stipulated a greater rate OF interest
not exceeding twelve per cent.
The state constitution OF Oklaho.
ma reduced the legal interest rate so
that the implied rate is now six per
cent, and the maximum rate that may
be charged by express contracts In
writing is ten per cent Any excess
would be usury.
The penalty for usury under the
constitution IS forfeiture OF an IN.
terest in case greater rate than ten
per cent is sought TO be collected. and
IN event the usury has been collected
or paid the party paying the same has
a right Of action TO recover double the
amount paid. such action to be brought
within two years
This "a the substance Of our ursury
Law as present, and Of course. can
only be enforced by the parties them.
selves The governor has no power
or authority 10 any way to enforce
these provisions, excepting only where
advice or persuasion Is effective
However, IN order that the limited
number Of banks IN community.
whore found necessary for the stabi.
ity OF our state banking law. shall
abuse their privileges by reckless and
extrayagant interest rates. the state
banking board has today adopted the
following rule.
Whereas. Il has come 10 the know
ledge Of the banking board Of the
state Of Oklahoma that where there
is one bank only IN a sparcely settled
community that such banks hi some