Bryan daily eagle and pilot. [volume] (Bryan, Tex.) 1909-1918, 1909-04-22

E positors by bonds which are feasib
and practical, and which good an
solvent banks will have no troubl
In making. The bill further provide
that the bond may be made by ind
vidual securities, and that each sur,
~ may limit his liability upon tn
bond TO a specific amount, provide
that there shall be not less thar
three such securities, and that the,
must be residents of the state OF Tex
as. own Property in this state aboy,
Exemptions. insuring solvency. Tn,
bond can also be made by surety com
panies.
"All guaranty fund banks are re
quired to contribute to a state bank
guaranty fund treated and maintained
along the lines OF the house bill. ex.
cept that the total amount OF the fund
Is required to be not less than $780,
600 instead OF not less than 100000.
as the house bill requires; and in
stead OF the fund being placed on de.
post with the various banks contri.
buting, as provided In the house bill.
Il is provided that 20 per cent there
OF. or 100000. whichever is the great.
er. is required to be kept on deposit
with the state treasurer at all times
In actual cash. The bill provides for
the payment OF the guaranteed depos-
i,so closed guaranty fund banks out
of the state bank guaranty fund In
cash upon proof OF the depositors'
claims along the lines OF the house
hill except that all such depositors are
required 10 be paid in cash. aud no
certificates are allowed 10 be used for
such payments as provided IN the
house bill Only the noninteresi-bear-
ing deposits OF guaranty fund banks
are permitted 10 establish savings
departments IN the manner provided
IN the house bill. The bill contains
most Of the provisions OF the house
bill for their frequent examinations,
most all OF which are taken from the
national bank Law and have proven
their efficiency. II also carries the
penal provisions for the protection Of
depositors contained in the house bill.
which are practically the same as
those OF the national banking law
and the New York state law.
The bill as prepared contains also
some provisions along the lines OF
the bill introduced In the house by
Representative Gilmore. and also the
bill introduced In the house by
Messrs. Mcdonald and Self. While
containing many provisions funda-
mentally similar TO the bills hereto
fore proposed In both branches of
the Legislature. II also Incorporates
new and original ideas. Upon the
whole. We confidently assert that the
bill assures. honest and safe banking
In Texas as nearly as can be done
by legislation.
The house bill required. as we
viewed II. and because OF which main.
ly three of the authors OF this bill
opposed II. that through the guaranty
fund system one state bank should
be compelled 10 stand good for the
debts OF another The bill which we
have drawn. on the contrary, simply
provides that any bank heretofore
incorporated, not desiring TO do Sc,
may avail itself OF the guaranty fund
system. This system is voluntary
one, In accordance with the idea en-
bodied In the bill on this subject in
troduced by Senator Culbersoh In
Congress last year. and we confidently
believe that Il will fully meet the
wishes OF the people who sincerely
desire that their money deposited in
banks shall be protected. While fully
protecting the people. the bill estab-
fishes safeguards for the depositors
along sound and conservative busi-
ness lines. and at the same time Is
not too burdensome upon the honest
bank.
Being unwilling that the Legisla-
ture should adjourn without enacting
a proper guaranty law. we have earn
estly endeavored TO perfect a meas
ure that offers a common ground upon
which all who favor meeting the de-
msnds for the better securing OF de-
positors In state banks may reason
ably unite. n the regulative and pen
al provisions OF the bin are enacted
in the law. we confidently believe