The Topeka state journal., 1909-03-26
Kansas State Officers Off for
Washington.
Date of Conference Set for Tues
day Morning.
BANK GUARANTY LAW.
Stubbs Confident COmptrOIler's
Decision Be Reversed.
Points in Kansas Law Similar
to Aldrich Bill.

Word was received today from the
government authorities to the effect
that the date of the conference asked
for and granted the Kansas state on
cials on the question of whether or not
national banks would be permitted to
enter the state guaranty association
had beer set for Monday night or Tues
day morning of next week. and Cover
nor Stubbs, Attorney General Jackson
and Bank Commissioner Dolley viii
leave tomorrow night for Washington
Attorney General Jackson has brieted
the case and is prepared to present the
matter in detail to the administration
officials. THE further one looks into
the matter said Governor Stubbs to-
day, the more one is convinced that
the Kansas guaranty law comes well
within the legal phase of the matter
and is not outside the province of sound
and practical finance. 1 feel very hope
full of getting a reversal of the comp
troller's ruling in this matter. Presi-
dent Taft himself. last campaign.
placed his o. Il on the guaranty plan
as adopted by this state and I do not
see how he can go back on his own
declarations
The Kansas officials in looking up this
legal phase of the matter today found
in the report of the acts of congress OF
the 1907-OS term that the Aldrich bill.
being an amendment to the national
banking laws made provisions for a
national bank guaranty association
along almost exactly the same lines as
the Kansas guaranty law. The Aldrich
bill allows national banks to form them
selves into associations where all banks
assume the liability of one and where
assessments are made and guaranty
bonds provided. etc.
The national bankers of the state
who were in the city in force today.
called on Bank Commissioner Dolley
in large numbers and talked freely in
regard to the effort of the state TO get
national banks admitted to the guar
anty association. Now that the guar
anty law has been passed the national
bankers show the most friendly spirit
toward the new law and seem to be
anxious to be allowed 10 come within
it's provisions. AT their meeting today
the bankers will take no decisive ac-
ton in regard to the guaranty propo-
sitfon, preferring to await the result
of the Washington conference A
committee to confer with the state Of
ficialS will likely be appointed and
resolutions of some kind adopted
Bank Commissioner Dolley has re-
ceived letter from national bank
at NARROW, Okla, which wants to
know if it would be possible for that
bank to enter and enjoy the benefits
of the Kansas guaranty association
This Oklahoma national bank would
be willing to pay the cost of the trip
of the examining board to that town
and all other expenses in order to be
able to secure state guaranty OF its
deposits.
This bank is on the point of turn
ing in its national charter In order TO
come within the Oklahoma law This
bank believes that the Oklahoma law
will be amended at the next session OF
that states legislature in such fashion
that national banks will be allowed to
take part in it, and if this bank could
be allowed to enter the Kansas assO-
citation and remain until such time as
it could join the Oklahoma association
as a national bank. to bridge the time
over, in other words, why It would be
grateful for that privilege
1--WE feel that the guaranty law -
popular and has come to stay" writes
this bank to Mr.. Dolley.
OF course, it will be impossible for
the Kansas association to extend
membership to out of state banks.
but the letter coming from a national
bank in a state where state banks
guaranty deposits gives an idea OF the
workings of the new plan.