The Topeka state journal., 1909-03-24
Governor Will Go to Washington
About Guaranty Law.
Attorney General Jackson and
Mr.. DOIley Accompany Him.
HEARS FROM TAFT.
President Agrees to the Con-
ference Suggested.
VIII See U. S. Attorney General
and Comptroller.

1t VIII be remembered that some
few days ago word was received in
Topeka to the effect that the comp
troller of the currency would not al
low the national banks of the state to
participate in the plan of guaranty OF
deposits, which is to say that no ma
tional bank could enter the guaranty
association without forfeiting its ma
tional charter from the government.
This ruling made the application OF
the new Kansas guaranty law most
unjust to the national banks of the
state, and Governor Stubbs imme-
dlately took the matter up direct with
president Taft, asking for a hearing
IN the matter before the comptrol-
lers ruling was allowed to stand as
final. Gov. Stubbs also wired to sew
eral members of the Kansas delega-
ton in Washington asking them to
take the matter up with President
Taft. AS a result of the governors
efforts the president has granted the
state a hearing in the matter and in
few days Gov Stubbs, Attorney
General Jackson and Bank Commits
sioner Dolley will go to Washington
and lay the states case before the at
torney general and comptroller of the
treasury with hopes of n reversal OF
the latter's ruling as regards national
banks.
The Kansas guaranty law makes the
matter of Joining the guaranty associa-
ton voluntary on. the part of the
banks and is an entirely different law
from the one adopted in Oklahoma.
President Taft, on the stump last fail
expressed himself favorably as to this
plan of bank guaranty and the state
desires a least a fair hearing before
the national banks are barred by a
member of the administration from
taking part in the plan.
How Il Stands.
The following statement, of the case
was given out by the governors office
today:
1.-The announcement that the federal
government had refused to permit the
national banks of Kansas to partici-
pate in the new Kansas banlx-guaranty
law was pEeQlature and incorrect. The
press dispatches stated that on March
10, representative of the Kansas Ma
tional bankers residing in Topeka re-
ceiNed q, letter from the comptroller of
the currency saying that the Kansas
national banks could not participate
This letter was in response to an
inquiry mailed from Topeka enclosing
a copy of the new law on March II. As
il takes about IS hours for a letter to
go to Washington and be delivered and
the same time to return. almost the en-
time time between March IL and March
Is. was consumed in the transmission
of the communications and the comp
troller of the currency had no time for
due consideration of so important a
subject.
Acting on thaL assumption Governor
Stubbs and Bank Commissioner Dolley
wrote and wired the president OF the
Importance of the subject to the Kan
sas banking interests and called atten-
ton to the fact that the basis of the
Kansas bank guaranty law is analogous
to that practised by the national gov
ernment to secure its deposits in banks.
that it extended to banks the right and
privilege to secure individual deposits in
practically the same way that the ma
tional banking law permits national
banks to secure national. state and
municipal deposits They insisted that
the conclusions of the comptroller as TO
the Oklahoma law were of no conse-
quence when applied to the Kansas law
because of the radical difference be-
tween the Kansas and Oklahoma laws.
Governor Stubbs wired Senator
Bristow urging him to see all the Kan
sas congressman who are favorable TO
the law to arrange for them to go in a
body and request the president to give
the state an opportunity to be heard
on this very important question before
finally determining not to permit n@~
tional banks to participate in the law.
Governor Stubbs also wired PreSi-
dent Taft asking that before a final
decision was reached on this subject
that the state might have an oppor-
tunity to present it's case to himself
States. The president has wired Gov
ernor Stubbs that he has directed the
attorney general to give the matter his
most careful attention and to give Gov
ernor StuDbs. Bank Commissioner Dol
lev and Attorney General Jackson a full
hearing on this subject. Attorney Cen
eral jackson is preparing a brief and
the three Kansas state officers viii go
70 washington within a few days"
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