The Topeka state journal., 1909-03-27
PLAN A WAY OUT.
National Bankers Would Form
Own Guaranty Association.
Committee Appointed to Form
ulate Plan.
SITUATION DISCUSSED.
Sentiment Is That Government
Will Not Let Down Ears,
Commissioner DoIley Makes a
Speech Defending Law.

1t is a safe assertion that the hun
Kansas who attended the meeting in
the Commercial club rooms Friday
afternoon, departed from the city in
a more contented frame of mind than
when they arrived in town. The meet
ing of the bankers developed that the
national bankers will not be without
relief in the event the government Of
ficials decide that they can not avail
themselves of the state guaranty law.
In fact, should that privilege be de-
MED the national banks a great many
of the bankers at the meeting believe
that they have the right to pursue
another course which in its results
will be just as good or even better
than the new state guaranty law.
When some of the national bankers
first reached the city they appeared
to be bit apprehensive lest they
might find insurmountable obstacles
in the way of their devising a plan
that would be quite satisfa ctory to
them and to the people, in the event
it is finally decided the national banks
can not go in under the state guar
anty law. 1t was generally conceded
that the national banks would be at
a disadvantage in competition with
made some provision for guaranteeing
deposits and none of the national
bankers seemed desirous of surrender
ing his charter to the national govern
ment and reorganizing as a state
bank. But when the bankers got to-
gether in their meeting, plans for
overcoming their difficulties were pre-
sented which put an altogether differ !
ent aspect on the mater and the bank |
ers began to see the silver lining be- |
hind the dark cloud.
Plan Way Out.
The plan that appealed to those |
present as affording the national |
bankers abundant relief in the event |
they are not permitted to participate I
in the state guaranty law is to organ |
ize a national bank currency associa-
ton, which is provided for under the I
Aldrich-Vreeland act, and then as an !.
tiona1 bankers could organize a ma
tional bank insurance company, which
will insure all the deposits in the ma
tional banks and provide guaranty
fund greatly in excess of the fund pro- !
posed under the state guaranty law.
After the various plans had been |
discussed the bankers voted to have !
the chairman appoint a committee
consisting of one banker at large and
two national and one state banker
from each of the eight congressional
districts-making committee of Is
in all-which committee should con- :
slider all matters pertinent to the sub
ject and formulate plans to be sub .
mitted to a later convention of the /
national bankers.
w. +. Marsh Presides.
Mr.. w. F. Marsh, of the Merchants
National bank, Lawrence, presided
over the meeting and F. M. Wilson Of
Horton served as secretary. A dis
cuSsion of the situation confronting
the national bankers was begun by /
Mr.. E. z. Ames of Topeka, and after |
Mr.. Ames had finished his remarks |
S. H. Frazier made a motion that a |
committee be appointed to consider /
plans of procedure.
Mr.. Scott Hopkins was called for by |
the audience and in a clear and con-
else manner he set forth the pro-
visions of the Aldrich-Vreeland law !
explaining the manner in which the
currency association may be organized /
and the relief it will afford the bank /
ers of Kansas. Mr.. Hopkins urged !
the national bankers to inaugurate /
campaign of education for the purpose
of giving the people clear under
standing of the AIdrich-Vreeland /
measure. He believed that when once +,
the people understand the provisions
of that law they will have no fear of
continuing business with the national
banks even if the state banks do
guarantee their deposits under the /
Mr. c. F. Henson presented to the
bankers his insurance proposition /
which was outlined in the State Jour t
nal yesterday and he explained how
this insurance company could afford i
adequate protection to depositors in |
national banks.
Mr.. ]. w. Bergman declared that
the national bankers need have no
hope that the federal officials will per-
NIT the national banks to participate
in the state guaranty law. You /
might as we'll eliminate that hope /
from your calculations" declared Mr.. /
Bergman. "for you are not going to |
be permitted to come in under the !
state law. Our energies and thought /
had better be directed here to devising /
some scheme to meet the situation. /
The fallacies of the state guaranty law |
are so plain that when the people do |
know about it they will think mighty !
little of it. We will have to devise |
something to take the place of the |
guaranty"
i'Do you believe the people will be !
as we'll satisfied with an insurance
proposition as with the state !
guaranty law?" one of the bankers
asked Mr. Bergman.
understand the law it will not appeal |
to them at all,'' was the reply.
Point Out Weakness in Law.
Mr.. c. w. Robinson requested Mr.. |
Bergman to point out some par |
ticular feature of the law that is
wrong and the latter replied that the |
law is wrong in principle and offered |
no further answer to the question. |
Mr. Hopkins. however. undertook to |
answer to Mr.. Robinson's question. He |
called attention to the cumulative as |
sessments in the law and also men |
until after six months notice. These |
features the speaker considered un-
desirable
Mr.. Robinson said that he would not /
be afraid for national banks to go in .
under anv guaranty law that is as good /
L. 3T,fr- 11xr-