The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-01-13


alTect taxation, because thereby the
pubic good is subserved
state" Guaranty Law.
Much has been said in platforms
ana the public press about a state
saaranty law and not a single bill
guaranty law The bill pressed at the
last session by Senator Quincy and the
one he is now advocating. makes it
crime Tor any bank, on its windows
or otherWlse, to advertise that its de-
posts are guaranteed by the state
law providing for levy of one.
tenth or mill on the dollar would
not only be equitable and just. but
which it is impossible to secure by
any or the so-called guaranty laws
proposed. The plan proposed by SEN
ator quincy, If constitutional is un-
tendlng to assess the banks which vol
unfairly go into the scheme, he knows,
as banker, that the borrower from his
oank VIII pay the assessment.
IN other words, his discount rate
VIII be largely controlled by the ex-
pense or operation Senator Quincy's
chief argument that the banks should
pay the assessment has been that it is
a protection to the banks. How does
IL protect the bank? The bank as
such, can get no benefit from the fund
IN any manner whatever If the bank
fails, under every law proposed all of
the assets of the bank, and the stock
holders double liability must be ex-
hausted before the guaranty fund is
available Absolutely not a cent of
the fund goes to the stockholders of
the bank, but it is available only to
pay the deficiency after the bank is
wiped out of existence.
Ihere would be some reason in
such a plan to raise a fund to guaran-
ty the assets of a bank, and thereby
protect the bank and the depositors.
+ az - IL ~ fr11
paired, the depositors are safe; but
either plan, from the standpoint of
assessments against the bank, is rid
iculous-while the levy of one-tenth
of one mill on the dollar would not
only protect the depositor, but would
establish absolute confidence and sta
bility. In this way alone would the
bank derive any beneft-a benefit
that would be common to everybody,
whether depositor or not
What Losses Have Occurred
"From reliable data, the losses of
depositors from failures of the banks
of the United States, national and
state, covering a period of twenty
five years, have been less than one
twentieth of one per cent. How much
ing the years 1907 and 190S-the
years of the panic? During those
years there was on deposit in the
banks of Kansas over $4,000, 900.
Every failure of a bank in Kansas
during the last twenty years has re-
suited directly from the frauds and
populations of the officers of the
bank.
No Deposition Will Ever Lose.
pass a law making it a felony for
from it, either directly or indirectly.
and a law disqualifying a director of
a bank who pledges his stock as col
lateral security to any one for his per-
sonal obligations. Enforce the law,
as it now exists, against perjury, and, |
with a guaranty fund created by a |
levy of one-tenth of one mill on the |
dollar, no depositor will ever lose a |
cent in Kansas as the result of a bank |
failure"
The Proposed Bill Itself.
The bill prepared by Mr.. Waggener |
IS very short and simple, and is as fol- |
An Act creating a bank deposit guaranty |
fund, making levy therefor, and provid-
ton thereof. and authorizing the loan |
and investment of the same.
Be It Enacted by the Legislature of the |
Section l. There is hereby created a
Bank Deposit Guaranty Fund.- and all |
after provided, shall be deposited in the |
state treasury to the credit of said Bank
out as hereinafter provided.
Sec. 2. No moneys shall be paid out of
u from said Bank Deposit Guaranty
Fund except upon warrants drawn by
he State Treasurer. and countersigned
~ the State Bank Commissioner, here
Sec. 8. There is hereby levied for the
year 1909, and each year thereafter, upon
al the taxable property of the State of
one-tenth of one mill the dol
ar, to be known as the Bank Deposit |
such levy when collected shall forthwith
De deposited in the State Treasury to the
,redit of the Bank. Deposit Guaranty
herefrom except as hereinafter provided. |
Sec. 4. Such levy of one-tenth of one
ear to to Year ea Unit Until the said "Bank I De
)osit Guaranty Fund with, the accre-
5rovided, shan amount to the sum Of Of two
Millions and five hundred thousand dol
hall be made until specifically author
Sec. 5. The State Bank Commissioner,
treasurer, by virtue of their respective
'ft1ces. are hereby created a Board to be
md as such. shall have control of the
Bank Deposit Guaranty Fund herein
Sec g. From time TO time, as said
Bank Deposit Guaranty Fund" shall ac-
it shall be the duty of said
o or deposit the same with the State and
National Banks and Trust Companies of
nd in like manner as state funds are
low loaned to deposited with such
|
,osit with the State Treasury. as security
herefor, United States bonds, state or
bonds, to be approved by said
Bank Guaranty Board; provided, how
yer. that such fund, nor any part there
f. shall be loaned to or deposited with
f interest less than two per cent per an
um, payable seni-annually. The interest
huS derived, when collected, to be de-
osited in the State Treasury. to the
redit and to become part of said Bank
Deposit Guaranty Fund"
Sec. Z. If any Bank or Trust Company
n the State of Kansas shall fail or sus-
end business after the date of the first
evy of tax made under the provisions of