Bismarck daily tribune. [volume] (Bismarck, Dakota [N.D.]) 1881-1916, 1909-12-16
BANK GUARANTY IN OKLAHOMA.

BANK GUARANTY IN OKLAHOMA.
The progress of the bank guaranty
law in Oklahoma Is worth watching.
Advertised as cure for financial ills,
it has fallen far short of its purpose,
and, as the Tribune pointed out ir
the agitation in this state, no COM
pulsory guaranty law can take the
place of safe and conservative bank
ing methods. 49,
h The Tulsa Daily World, one of the
best known papers in Oklahoma, has.
this to say Of the law
IL The politicians over the state are
alwhooping it up for the guarantee law
but in so doing are claiming greater
financial ability and acumen for
themselves than for men who have
spent years in the banking business.
The purpose is plain. To arouse in
the popular mind prejudice against
the banker in order that the political
end of the guarantee law may -four
ish and prosper.
q 1t is the mature judgment of the
World that there is not banker in
the state Of Oklahoma or elsewhere
that honestly believes the guarantee
law as at present in force in Okla
homa is sound.
''But the law was not made for the
bankers" glibly responds the politi-
clan. But If it does not contemplate
conserving the interest of the banker
in legitimate manner then it is not
sound for the depositOr. It has been
pointed out that the people got their
money from the Columbia Bank and
Trust Company on demand. The
small depositor was paid on demand,
but the state bankers, who were the
heaviest depositors, did not get their
money on demand. Their demands
were protested.
The result Of the recent call for
statement by state banks brings to
tight some significant features For
instance, one Tulsa bank, a state in
stitution, has dropped the line, DE
posts guaranteed by the state guar
antee law" Instead, it carries on its
statement, and other advertising mat
ter, "Depositors are guaranteed safe
and conservative banking"
J.. Another bank, but not located in
Tulsa, abolishes its line about depos-
itors being guaranteed by the state
law, and prominently displays this
one: This bank is able to pay all
its debts"
= Numerous other instances have
been cited where the state bankers
have abandoned the supposed fetish
of the depositors' guarantee law.
They know, as at present constituted
and enforced, the law is unsound and
dangerous; that it is liable to pull
them all down, once it gets going.
Nor are the bankers of Oklahoma OPP
posed to the guarantee idea; they
favor it. They are willing and anx-
ious that some law should be devised
whereby depositors may be insured
against loss. But they understand
that the present scheme, carried into
other lines of business, would make
all grocers contribute to pay the debts
Of a fellow-grocer; all business men
contribute to pay the fire losses of
"habitual fire bug" The honest
banker, who knows how" is not go
ing to fail To make that man put
up" for the dishonest banker, who
goes into the business in order to
milk his own institution, is scheme
utterly lacking all elements Of justice
equity or sound business.
-, And daily events are proving the
wisdom of that forecast. Already,
even before the people had been per-
mitted to learn the facts in connec-
tion with the Columbia liquidation,
three state banks have surrendered
their charters and gone under the ma
tiona1 bank act. Numerous others
are known to be arranging for iden-
tica1 action, while new banks. being
X organized are adopting the national
instead Of the state law. Scores Of
state banks have dropped from their
advertising ali mention of the guar
antee law, substituting therefor some
II statement as to the institution's con
servation or financial ability. 4 - +
All this is extremely significant It
means just this: The bankers Of the
state know the guarantee law as at
present constituted Is not only worth
Less al safety device. but is danger
Gus to those participating in it, liable
to bring long train of wreck and
h ruin at any moment The bankers
} have found from careful investigation
that men Of affairs with money to-
& deposit are In sympathy with them.
The business men OF the state thor
4 oughiy appreciate the conditions and
Will patr0nize national bank as
h quickly, II not more quickly than q
state institution All things else be-