The Topeka state journal., 1909-03-26
BANKERS HERE.
To Consider What to Do About
Guaranty Law.
National Banks Have Been De-
MED Entrance.
FORM AN ASSOCIATION
Opinions Expressed by PrOmi-
nent Bankers of State.
VIII Likely Await Result of
Washington Conference.
FORM AN ASSOCIATION

10 Lfe DuSlDeSS interests VI the SNdLS
the meeting of the national bankers
of Kansas to consider the advisability
of participating in the state guaranty
law-marked the opening of the new
quarters of the Topeka Commercial
club on the top floor of the Commerce
building at 2:30 o'clock this afternoon.
Nearly a hundred national bankers
from various cities over the state were
present when the meeting was called
TO order in the large assembly room
this afternoon and in the audience
were some of the most prominent
financiers and men of public affairs in
the entire state of Kansas.
The sentiment among a majority of
the national bankers in attendance at
the meeting appeared to be against the
national banks participating in the
. state guaranty law, although a num-
her of the bankers seemed to believe
that the passage of the law has
created a condition that will make it
advisable for the national institutions
TO come in under the act if suitable
provision can be made for that course.
In view of the question that has been
raised by the ruling of the comptroller
of the treasury on the matter and in
view of the proposed visit to Washing
ton of Governor Stubbs and Attorney
General Jackson to endeavor to obtain
a favorable ruling from the govern
ment officials relative to national
banks participating in the guaranty
privilege it is believed that the bank
ers at the present meeting will not
take definite action Oh the matter, but
viii appoint committee to formulate
q plan of procedure when the pending
questions are finally decided.
New Commercial Club Rooms.
The new assembly room of the Com
nerciaI club. where the national bank
3 most attractive appearance. The walls
are papered in dark green. the solid
color being relieved with vertical strips
OF dark-colored oak about two feet
apart. a rich. light green carpet covers
the floor and the tables and comforta-
ble chairs are of weathered oak and
upholstered. forming a color
combination harmonious in tone and
IleaSing to the eye. The appearance
of the new rooms of the Commercial
club is a matter in which the members
of the club may take much pride and
even Charles Smith. the engineer of the
elevator in the Commerce building. ap-
pears as proud as a bronze lion of the
new quarters on the top floor.
\ number of interesting propositions
for guaranty of deposits in national
banks were advanced and discussed by
the bankers when they gathered in
formally in the rooms of the Kansas
Bankers association on the fifth floor
os the Muivane building this morning.
Many of the bankers expressed their
opinions of the state guaranty law and
nearly every one of the arrivals had
some lOed concerning LnG subject OF
guaranty Of bank deposits.
The morning was spent by the out
of-town bankers in conversation in the
rooms of the association and in visiting
their banker friends in the local in
stitutions.
Criticism for the Kansas Law.
one of the interesting propositions
which was informally discussed by a
group of financiers in the association
rooms :his morning was an insurance
nGsff n 6--oT an6 Nv 4 Z
of the Peoples National Bank of Paola
Mr.. Henson in commenting on the guar
anty law said:
I think the legislature passed a very
poor law One big failure would wipe
it out entirely. I believe the national
banks can get together and devise an
insurance proposition that would bea
the state law a mile. In nv opinion
the national banks are not as anxious
10 get in under the law as the state
banks are to have them in. The ma
uonal banks could organize a national
bank insurance association have a
paid-up capital and each bank coming
in could pay a premium which would
go into reserve fund and leave the can
ital unimpaired in case of a bank fail
ure- Each bank applying for insurance
would be examined and the premium
tate be based upon the character of the
risk involved 1 believe such a scheme |
would be profitable as an investment
either for banks or individuals"
This proposition afforded opportunity
tor considerable interesting informal
discussion among the bankers in the
group
EX-Gov. Bailey on The Kansas Law.
Ex-Governor W. J. Bailey. of the !
Exchange National bank of Atchison. |
said that he was opposed to the prin- |
cipie OF guaranteeing bank deposits
when it was first proposed and that
he fought against the idea and has NOT |
yet changed his opinion of the law
But the law has been passed ." sa id /
Gov. Bailey, "and the proposition is |
now condition and not a theory. Il
doubt II the government will consent |
to the dual supervision over the ma
tional banks by state and national Off
Cials which would be necessary under
the guaranty law In his ruling on |
comptroller of the treasury based his
adverse decision on the ground that it |
Is not right for one bank to guaranty
the losses of another. l do not care
TO venture an opinion whether the
government authorities would consent |
to change their line of reasoning in |
the case of the Kansas law
Comptroller Cannot Prevent Us
l. 5. Naftzger, of the Fourth Ma
tionat bank of Wichita. expressed the
opinion that some plan will be de-
vised whereby the national banks viii
be permitted to participate in the
guaranty law He did not believe the
comptroller could prevent the stock.
holders of a national bank doing what
they wanted to with their own private
funds and if the stockholders desire to
use their dividends to guarantee the
national banks deposits they cannot be
prevented from adopting that course
Mr.. Naftzger stated that it is almost