Omaha daily bee., 1909-02-01
LETTING DOWN BARS, o BANKS
Wilson Bill Less stringent Than the
Present Regulations.
(From a start Correspondent.

(From a staff Co-rrespondent)
LINCOLN. Jan. H.-(Special.)LThh
fact that the democratic party has prom
Used n law which will guaranty bank de-
posits has inspired the bankers TO appeal
for less stringent banking laws. as fore
told by the republican leaders in the last
campaign.
Should the Wilson bill, which is now
being amended by Governor Shallenberger
and Mr.. Bryan, be enacted into law, the
first step toward wildcat banking will be
the reduction in the reserve which is re-
quired to be kept in the vaults of the
banks At the present time the law re-
qulres a reserve of Is per cent of the to-
tai deposits, of which two-fifths, or 40
per cent, shall be kept in the vaults In
awful money. The Wilson bill provides
for a reserve of IS per cent of the total
deposits of which 6 per cent shall be
kept in the vaults of the banks in law
full money and the remainder of the re-
serve of said banks shall be kept subject
to demand in other banks or trust COM
panies approved by the superintendent of
banks In both the present law and the
Wilson bill in cities of over rs. 900 the re-
serve shall be 20 per cent Of the de-
posits.
The section. which Is 70 worded that 1t
will be possible for the banks to reduce
their reserve of lawful money to prac-
tically one-seventh of what 1t is at the
present time, reads as follows:
Sec. 33. Commercial banks and CONNER
cial and savings banks shall keep as a re-
serve at least 15 per cent of their total
deposits. of which at least 6 per cent
shall be kept in the vaults OF the bank
the reserve of said banks shall be kept,
subject to demand, In other banks OF trust
of banks, provided, that in cities having
a population of more than twenty-five
(25.o00) thousand such reserve shall be 70
per cent of the total amount of deposits.
Thu present law says:
Every bank shall at all times have on
bend as a reserve In available funds an
amount equal TO at least 10 per cent of the
aggregate amount of its deposits. Two
the vaults of the bank providing that In
cities having a population of more than
5000 said reserve shall be 20 per cent OF the
aggregate amount OF the deposits; provided
further, that savings banks shall have on
hand all all times as a reserve in available
funds an amount equal TO at least s per
cent of their aggregate deposits.
The present statute caves no doubt OF
its meaning. but says plainly two-tifths of
the reserve shall be kept in the vaults.
The Wilson bill makes possible the inter
probation the cash on hand need be but Z
PNl NchN VI Nv ~ PCT NSih AC5CN
Under the old law a bank with deposits
of 100000 would be required to keep in
their vaults $500 which is two-fifths OF
the reserve. Under the Wilson bill the
bank with deposits Of 100000 would be re-
quired to rave I'm their vaults only 5000, OF
6 per cent OF the 10 per cent reserve.
Another section OF the bill which will
revolutionize matters of banking is that
which requires the superintendent of bank
ing to designate reserve agents or deposit
tories In which banks may deposit their
reserve. Under the present law the banks
may deposit their reserve In any solvent
bank. No state superintendent can deslg.
nate a national bank as a depository be-
cause he will not rave any authority "a
examine a national bank. This will require
the state banks TO remove from national
banks their reserve deposits or the super.
~intendent will have to endorse a bank
about which he has no first hand informa-
ton.
The amendments which have been acted
upon are those formerly mentioned in Tit
Bee as having been endorsed by the gov.
ernor and Mr.. Bryan.