The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-04-03
NOT LIKE OUR LAW
Kansas and Nebraska Bank
Guaranty Plans Compared.
Sister State Denies National
Banks Right to Participate.
IT'S ALSO COMPULSORY
Forces All State Banks to Ac-
cept Its Terms.
Items of Interest From the
State House.
IT'S ALSO COMPULSORY

Secretary of State Denton has re-
ceived a copy of the Nebraska bank
guaranty law passed by the state
legislature of that state and signed py
the governor March 25. The Nebraska
guaranty law will be of much interest
to Kansans as it is at complete var
lance with all the important points OF
the new Kansas law.
The Nebraska law includes in the
guaranty scheme all state banks ana
private banks receiving money subject
to check pass book or draft, put eA-
plicitly bars national banks from the
association. The Kansas law seeks 10
admit national banks and the Kansas
governor. attorney general and oanK
commissioner are in Washington now
pleading with the national authorltles
to allow national banks to take part
in the guaranty project.
The Nebraska law provides tnat
state banking board consisting OF tne
governor auditor and attorney gem
eral shall control the enforcement OF
The new law and gives additional
powers to the governor by authorlzils
him to appoint the secretary OF the
BOARD at a salary of $4,000 per year
and bank examiners at salaries Oh
$500 per year each. Inc goVIlnT1l ,'1l
has no particular powers in the pank
guaranty scheme under the Kansas
law and the bank commissioner, not
the state banking board. controls tne
situation in this state. .
Under the Nebraska law IT IS un-
lawful for any bank to do business in
the state without having hrst ob-
tanned a charter from the state Dank-
ing board In Kansas the guaranty
scheme is voluntary, not compulsory
The Nebraska law provides Tor
levy upon all banks in the guaranty
association of one-fourth of one per
cent of their daily deposits -FOUR times
a year which levy goes to form tne
guaranty fund and is to be set apart
as such fund in each of the banks tax
ing mart In Kansas the guaranty
fund is to be deposited with the state
treasurer and the amount OF this 1unu
is specified in the law.
The Nebraska law does not specify
which deposits shall be guaranteed ana
which shall not. but it protects the
hanks in the matter by providing tnat
no bank shall be allowed to pay over
4 uer cent interest on deposits. Inc
Kansas law devotes thousand woTus:
more or less, to a description OF what
deposits shall be guaranteed and those
that shall be made at the risk OF the
Individual.
Under the terms of the Nebraska law
when a bank appears TO the state
banking board to be in an insolvent con-
dition then the board can appeal to the
attorney general and the latter makes
complaint to the judge OF the dlstrlct
court in the district where the bank IS
located and the judge can appoint,
receiyer for the said bank in regular
process of law. Then either the receiv-
er or an examiner appointed by the
state banking board can take possession
of the failed bank and wind up It's al
fairs If there is insufficient money at
+ba disnosal of the receiver to pay off
all depositors the receiver can call on
the state banking board for the amount
necessary to make up the denclt; TINS
is secured from the guaranty fund at
once and forthwith turned over TO the
receiver and the latter pays OF all de-
nositors in due order. In the case OF a
failed bank the receiver pays hrst the
taxes. next the depositors and then the
exchange accounts. The Kansas law
provides that the bank commissioner
take charge of bank and wind up its
affairs and does not specify how long
he may be about it or how soon ne must
draw on the guaranty fund.
While the Nebraska law provides that
the district court may appoint re-
ceiver for failed bank, yet the exami-
ner appointed by the state banking
hoard has precedence over the receiver
in the matter of authority in winding up
the banks affairs.
Oklahoma, Kansas and Nebraska
are the only three states that have
passed guaranty of bank deposit laws.
There is a wide contrast in all three of
these laws when 1t comes to making a
comparison. The Oklahoma law is
compulsory and the most radical of
the three. The Kansas law is volun-
tary and seeks to admit state banks
and contains so many provisions as to
make it a complicated law. The Ne
braska law is the simplest and most
direct of the three 1t compels state
and private banks to join the guar
anty association and bars national
banks. fasteners show a disposition
to hoot at all three of the western
guaranty laws, but in time of storm
they should prove a life buoy for the
small depositor, the business man and
the farmer. The plan has many draw
backs and perplexities which all three
of these states have in their turn
sought to eliminate or avoid, but its
object is to protect the savings of the
individual from loss through the fol-
ly, dullness or carelessness of any
banker or set OF bankers whomsoever
The sentiment in favor of the guaran-
tv law has grown steadily in all three
Of these states ever since its first in
ception.
A bill was introduced in the last
Kansas legislature looking to the es-
fabIishment of a tuberculosis pavilion
on the grounds of the state peniten-
tiary, and the pure food authorities
of this state gave out interviews at the
time of the need of such an addition
to the penal institution. The matter
rested there. Now comes Gov. Hadley
of Missouri and declares that prison
conditions in his state are atrocfous
as regards the spread of tuberculosis.
there being 100 consumptives in the
Missouri penitentiary, and has oroer-
ed a pavilion built on the state pen
itentiary grounds. The Missouri gov
ernor will also take active steps to in
staIl hygienic regulations in all the
public buildings.
Kansas is not the only state in the