The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1909-04-01
MAKE THEIR PLEA
hansans Present Arguments on
Deposit Law.
Mr.. Jackson Contends That
There Is No Conflict.
MURRAY in OPPOSITION
Says National Banks Are Pro-
htbited From Participating.
Senators Curtis and Bristow
Attend Conference.

OF national banks to participate in the
Dement'S and assessment of the bank
guaranty fund. created by a recent
law OF that state, upon the same terms
and conditions as apply to state
banks, Wednesday afternoon.
There were present on behalf of the
state Governor Stubs, Attorney Cen
eral Jackson, Bank Commissioner
Dolley and Senators Bristow and Cur
it's.
Comptroller of the Currency Murray
and Judge Oldham, of his office. also
were present. The Kansas bank de-
post guaranty it is said contains GER
tain provisions limiting liabilities, ETC..
which do not exist in the Oklahoma
law. the terms of which Attorney Cen
eral Bonaparte decided could not be
legally accepted by national banks.
On behalf of the state, it was con-
tended that the inhibition of the ma
tional bank act against national banks
other bank did not apply to the case
In question.
Like Mutual Insurance.
What the Kansas law really did.
said the state advocates, was to al
low national and state banking in
situations to enter into an arrange
ment by which each bank in effect,
insured its own depositors against loss.
1t was to all intents and purposes.
they argued, a mutual insurance
agl cement and if national banks are,
under the statutes prevented from in
eur1ng their own depositors by such
mutual arrangement they should
ALSO be prevented from inSuring their
bank buildings or other property in
mutual insurance company.
AS to the apparent conflict between
the national bank act and the Kan
sas law regarding receivership it was
DnnfennPd behalf Of the state that
the state requirement that the state
bank commissioner should close up
the affairs of failed banks, was wholly
administrative and that it was within
the discretion of the state bank COM
missioner to permit the comptroller of
the currency to assume charge of
failed national banks and wind UP
Comptroller Murray takes a directly
opposite views of the whole question.
He insists that the statutes and the de-
cisions of the courts for the last
forty years, clearly prohibit national
banks from in any way guaranteeing
the obligations of another bank or
a third party; either by contract or by
specific appropriation of a part of
its property.
IN reply to the statement that an
adverse ruling on the questions in
volved would force the national banks
of Kansas to surrender their charters
and go into the state system,
Comptroller Murray states that the
facts as to the operation of the Okla
homa law prove the contrary. In
that state, he asserts the national
banks are in a prosperous condition
and their deposits show gratifying in
creases.
AS Seen by a Washington Paper.
The Washington Herald prints the
following concerning the Kansans:
Gov. Stubs, of Kansas, accompanied
by several state officials. arrived in
washington yesterday prepared to i'm
press upon the administration the neces-
sity Of allowing national banks in that
state to share in the benefits accruing
from the guarantee of bank deposits.
This question is considered vitality i'm
portant in the Sunfiower state, as the
governor explained. and when the dele
cation calls upon Secretary Wickersham
voluminous reasons why the statutes
should be changed will be submitted
According to the state laws, the banks
Incorporated under its regulations may
guarantee deposits after July 1, and
are said to be able to put out of bust
ness the national banks which cannot
do so. The officials of the national in
stitutions in Kansas are up in arms.
and are demanding that some means be
found whereby their banks shall par
ticipate in the profits that are falling
TO the Independent concerns.
Banks May DenationaIize.
There is a persistent rumor through
out the west to the effect that unless
some provision Is made to remedy this
defect. the national banks will dena-
tionalize.
This sentiment is responsible for the
presence of Gov. Stubs in Washington
He has been intimately associated with
banking institutions in his state, and
resigned from the presidency of the ma
tional bank in his home town in Janu-
airy to become governor.
When seen at the Hotel Raleigh last
night, the governor was enthusiastic
over the prospects of framing a law
which will take national banks into the
same fold with the state banks
Accompanying Gov. Stubs are Attor-
ney General w. s. Jackson, William AL
len White, and ]. N. Dolley, bank COM
missioner, and speaker of the Kansas
house Of delegates.
Every one in he party is optimistic
Every one in the party is optimistic
which is to be held with President
Taft and other federal officials this
week.
May Unload Government Bonds.
One Of the principal arguments adj
vanced by the Kansans is that the eff
feet of the guarantee deposit feature
will be to draw business away from
the national banks. They contend that
If this situation continues the federal
institutions, protected by federal au-
thority, will denationalize. thereby I'M
loading millions Of dollars worth of
government bonds on the market.
1.-THE national banks have a legal
right to enjoy the benefits allowed I'M
der our state law. When the depart
ment of Justice decided that the ma
tjonal institutions could not partici-
pate in the guarantee feature, owing
to the way in which the state law was
drawn, we began to remedy the law.
and are here now to see whether our
present law will stand the test" said
Governor Stubs.
I'VE have tried to avoid any detail
that would keep the national banks
out and our law will be made public
rgifh fadaral Of
ficials. Under this new legislation the
national banks will be partners in a
mutual insurance proposition. A mil