The Globe-republican. [volume] (Dodge City, Kan.) 1889-1910, 1909-09-23
THURSDAY, SEP. %, 1909
Why the Guaranty Law Protects the Deposition

Tue bLAl1ulSh'-s iOCOHsJs ~ 'SS"" w
the Gaarsuly Law. They state that on
recent dAte fJrty- five banks had qualified
under tbe Guaranty Law. and certificates
Issued, and 80 $40 90 in assessments paid
and that be amount of deposits guaran-
teed il S7b00.000. The facts are, that at
that Om there was the above amount
pa,i in which, under the law, could be
increaeed to i've times that amount by as
sessments ordered by the Bank Commits.
sioner ahaald occasion require. There
were at that lime also deposited by these
forty five bsuks $44 900 90 Of bonds and
cash. as provided for under the Bank
Dspo-itors Guaranty Law.
The records show that during the past
forty years he average net l,ss 10 depos-
itors through failed banks has not been
to exceed 20 per cent OF the deposiI' al
the da'e Of failure, or 10 other words,
fouriif'ns u the deposits of failed banks
udNc bttb pHu w uCpooitoio'
Cau q tiges, ex Comptroller of the
Curreuey ard Chss N. Fowler, Chair
man Of me u. S Fl uss of Rapresen
tives B.tktS ;'m nItle, nave spent
ml,l ra V4stigallg The subj CT Of
gnar4n eting bank deposits, aud they
(proUtDiy he best authority ID tbr
cOuntry ~ this snbjecD, ooth agree that
he ayey q losses thrlagb bank iaiure'
In tn, Uulted States since the organic
alton OF tns uationa banking sl stem has
been on1-tventy hfth Of per cent, or 40
cents pei S1,00O.C0 per aDnum
Chas. N. Fowler,in his report, touches
on tai GIrinty FIni prog ,.Clon, and
after ctretdt lnlte., makes this STATE
mat Ia o., repro: IA annuti lax If
one dtGn OF one-fl fin OF per c. nt, would
cover tie losses OF dep,sG,r. through
biuk failures eael year !" FMS 10 the
mjulC required, 80 says the experts, to
absolutely Guarantee the payment Of all
deposits held by failed banks.
In. records of the Kansas Banking
Department show that less than Az cents
per 81, WJOO Will pay tue net lOsses OF
ali deposits 10 failed State Banks. d0
not tnlnk smaller amount would pay
the net losses occasioied through the
failure Of national banks, rs the records
show that the net Losses through falluies
OF natlolal Danss 10 Kansas have been
mucn greater than the losses through |
failed State Banks.
Now, as to the solvency and tue abso-
hte slilicency Of the provisions of the
PROVISIONS Of the Kansas Guaranty Law,
" ,.ri u tae hrsG sssessmeut 0f
one-.wentIeth of per Cent, wulcn ls 81
ceurs per $l,oOO.oo, Is 20 per cent more
tnan the required amount us shown by
he banking records for the pasG toity
Years 10 pay all the net losses for that
period OF time.
In addition to this, tue Legislature
very nbefaly provided Tor the raising Of
very mucn more money eacH year Ihan
can eyer possibly be needed, Under the
law, the Bank Commissioner can levy
ave ASSESSMENT IN eaon year of one TWEEN
tIetn OF per cent, whl;u IS $3.50 per
$1,000 90, OF 81 10 more per 81 900 90
inan he records of the past forty years
snow would lave been needed
10 make the Fdod Absolutely adequa te
beyond All question, the Legislature pro-
ylIeI fdrtaec tait e4ia OAK mI3h de-
p0slst good and sulil;ent bond Of
$4,000 for each $lOO, OOO.00 and frac.
tOnal part thereof of the banks deposits.
Snould TIC banks books show that it had |
an average per annum of $loo,ooo.OO
10 bonds, watch, it is estn4ted, will
amount to Sc 90 per 81 900. 90 addition
al security.
The Bank Deposltors' Guaranty
Law" shows and provides for, under its
suaigh assessments, six times more
money than the records, for the past
forty years, show would have been need
cd, with 90 additional security In bonds
Of fifteen tImesthe average net losses.
NO banker or business man in the
state, Eyes, the Natlon,) thinks for a
nomeut that the losses TO depositors will
De as great during the next forty years.
IL Is not . question with the opponents
Of the law as to It's provisions and ade-
quacy, bat II is their determination that
the people Of the State of Kansas shall
not have that for which they asked and
70 which they are entitled. They shall
not have law which means that when
they deposit 81 90 10 the bank that
afterwards falls that they will get IL
back AZ 100 cents on the dollar, and not
80 cents.
lam pleased to say that three-fonrths
Or the State Banks are ready and willing
70 grant their depositos the benefit Of
the Guaranty Law.
The Constitution Of our State end Ma
ton does not provide nor intend that on
public questions Of thIs kind % per cent