The Washington herald., 1909-03-30
KANSAS OFFICIALS
URGE BANK REFORM
Gov. Stubbs to Recommend
Guaranty Plan.
WILL CONFER WITH PRESIDENT
Change Is Sought to Allow National
Banks in SunfIOwer State to Guar
antee Depcsits-Governor Outlines
scope of Proposed LeEfsIatiOn-Says
IL VIII Insure Stable Conditions.

Gov Stubbs, OF Kansas. accompanied
by several State officials. arrived in
Washington yesterday prepared 10 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 vltaHy I'm
portant in the Sunfower State. as the
governor explained and when the dele
cation calls upon Secretary Wiekersham
voluminous reasons why the statutes
should be changed viii be submitted
According to the State laws. the banks
Incorporated under its regulations may
guarantee deposits after July I. and are
said TO be able 20 put out OF business the
national banks which cannot do so. The
officials Of the national institutions IN
Kansas are Up in arms. and are demand
ing that some means be foune whereby
their banks shall participate in the profits
that are falling 10 the independent con-
Germs.
Banks May DenatiOnaliEe.
There Is a persistent rumor throughout
the West 10 the effect thar unless some
provision is made TO remedy this defect
the national banks will denationalize.
This sentiment is responsible for the
presence OF Gov. Stubbs IN Washington
He has been intimately associated with
banking Institutions in his State. and
resigned from the presidency % the na-
tional bank in his home town in Janu-
ary 20 become governor.
When seen az the Hotel Raleigh last
night. the governor was enthusiastic
over the prospects OF framing law
which viii take national banks into the
same fold with the State banks.
Accompanying Gov. Stubbs are Attorney
General W s. Jackson. William Allen
White, and J. y. Dolley. bank commits
sioner. and speaker OF the Kansas
house OF delegates.
Every one in the party is optimistic
over the outcome OF the conference
which is TO be held with President Taft
ana other Federal officials this week.
May Unload Government Bonds.
One OF the principal arguments ad-
vanced by the Kansans IS that the effect
Of the guarantee deposit feature win be
70 draw business away from the national
banks. They contend that II this situa-
tion continues the Federal institutions.
protected by Federal authority. VIII de-
nationalize. thereby unloading millions
OF dollars worth OF government bonds
on the market.
The national banks have legal right
tc enjoy the benefits allowed under our
state law. When the Department OF
Justice decided that the national institu-
tions could not participate IN the guar
antee feature, owing 10 the way In which
the State law was drawn. we began 10
remedy the law. and are here now 20 see
whether our present law will stand the
test" said Gov. Stubbs
We have tried to avoid any detan that
would keep the national banks out. and
our law viii be made public after confer
ence with the Federal officials Under
this new legislation the national banks
viii be partners In a mutual insurance
proposition. A million dollars viii have
20 be deposited with the State treasurer.
either in State or national securities. 10
guarantee the payment OF deposits and
the dues or insurance premiums viii be
only One-twentieth OF 1 per cent
The plan IS not only considered a great
undertaking. but our people are anxious
for its enforcement all over the State. II
is the fruit Of years Of experience and
study on the part OF our leading business
men, and viii be appreciated by other
States after II is put I'm practice. The
banks in Oklahoma. Texas Nebraska
and Iowa already have a State law SINH
lar 10 ours, and the national banks are