The Ellensburg dawn. [volume] (Ellensburg, Wash.) 1898-1914, 1909-02-04
MAY MAKE BANKS
COMPLY OR QUIT
Proposed Bank Guarantee Law of Kansas Drastic Propo
stion-Ony Deposits Drawing Less Than 3 Per Cent In
erest nsured-Banks Put Under Bonds Guarantee Fund

TOPEKA Kan. Jan. 30.-The admin
istration bill outlining plan to guar
antee bank deposits made its appear
ance today. 1t has not been introduced
in either house yet, but it was the sub
ject of an all day conference in the
governors Office. At the conference
were Goverdor w II. Stubbs, Speaker
j. N. Dolley, Lieutenant Governor
Fitzgerald members of the banking
committee of the two houses and few
bank ers.
While the bill does not meet the az.
proval of all the bankers present or
some Of the members of the banking
committee, yet Governor Stubbs be-
lieves it is sound, and his friends will
try and push it through 1t was drawn
Ivy William MacFerran, Tepoka
banker.
Senator +. II. Quincy Of Saline is
opposed to it. He told Stubs so. He
declared that its principle was wrong.
and that it would not meet the demands
of the people. He will make a stand
for his own bill.
WHAT PEOPLE WANT IS MONEY.
+. w. Goebel, banker of Kansas
City, Kan, said the feature requiring
banks to put up bonds instead of cash
weakens the measure
"What people want when bank
fails is money!" said he, ''not bonds. >
"The trouble is" said Quincy, 1.-THE
bill takes assets away from the depos-
itor 10 order to create fund to pay
those depositors:"
1.-The bond feature is all right" said
Stubbs. SIT gives soundness and sta
bility to the guaranty proposition. II
the banks don't want to put up bonds,
let them put up cash..
Section | authorizes the directors of
all incorporated banks, by resolution,
to empower the banks to participate in
the kansas Bank DepositOrs' Guaran-
ty Fund.- Before any bank shall be-
come a guaranteed bank it shall file
resolution of the directors with the
state bank commissioner. He then
shall make a rigid examination of the
obeying all the banking laws Of the
state, then he shall issue it a erliiicate
showing that its deposits are gua"an-
teed by the fund.
MUST DEPOSIT BONDS.
Before receiving certificate of ad-
mission, however, each bank must de-
post with the state treasurer to the
order of the bank commissioner APP
proved government, state or municipal
bonds to the amount of $500 for every
800, 600 in deposits or fraction thereof.
No bonds shall be accepted, except
those which it is permissible under the
law for the state school fund to buy.
The bonds shall be charged as asst is
on the banks hooks. This would raise
something over 81, 000,000 for the fund.
Section provides that when bank
becomes insolvent the bank commits.
soner shall proceed to wind up its af-
fairs and issue certificates to deposi
tors, which shall bear ; per cent inter-
est After the bank commissioner or
receiver has realized all he can upon
the banks assets, including liability of
stock holders, he shall call upon the
other banks to put up their share of
amount still due depositors of the fail
ed dank, such share to be based on the
amount of its deposits compared to
other banks.
ONLY 3 PER CENT DEPOSITS
This money must be paid into the
fund within thirty days after notice is
served. The commissioner then shall
check against it to pay the depositors
In full. The total assessments shall not
be more than One-fifth of ! per cent OF
the average deposits ia any one year.
If the limit of assessments in any one
calendar year shall not provide enough
funds to meet the deficiency of failed
ba nks, the depositors shall be paid pro
rata and be required to wait for final
payment until the next assessment is