Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1909-05-28
GUARANTEE LAW HAS
PUT CR|MP IN THE
NATIONAL BANKS
SITUATION IN FOUR
STATES BECOMES ACUTE
Big Surety Companies Of New
York May Come to Relief Of
Banks in Kansas, Oklahoma
Texas and Nebraska,

$3.50
Washington, II c., May -.
That the proposition to have surety
! companies guarantee the deposits Of
national banks In Kansas, oklahoma
Texas and Nebraska In order to meet
the situation presented by the state
guarantee law there. and the rcfusal
OF tho government to permit it's Mt
! tlonal banks to take advantage IF
| hat plan. is to be brought to n speedy
! conclusion. became known today
The national banks in the statei
mentioned are suffering loss because
he state banks are making heavy in
roads into their business and they
| have notified the surety companies
committee in New York that prompt
| action Is absolutely necessary.
As a result, the surety companies OF
New York. including nearly all Of I'll.
big concerns. With a combined capl'
tai or $40. 600. 000J have under con
sideratlon. according to william u
Joyce, president Of the National surety
company of New York. who is one
of the committee working OF the plan,
a proposition to overcome the disad-
7 'antage the national banks are labor
'ng under.
The national anks in the states OF
Kansas. Oklahoma. Nebraska ana
rexas." said Mr.. Joyce today are
laced at a very serious disadvantage
~ reason OF the competition OF tne
tate banks, who are in a position to
,ffer the states guarantee of all de-
! ,osits. The representatives. of the
| various surety companies operating n
! the states affected have had brought
! O their attention the unfortunate pre-
Iicament Of such national banks. ana
many of the company managers l'el
II il their duty 10 the bankers from
whom they receive a large volume %
business to lend their assistance I,
offset the odds under which the pahN
RS are working providing the surety
,ompanies feel that they can handle
he situation without exposing hem
elves to any extra hazard.
oIt viii be remembered that during
octobor 1907. many Of the surety
companies were required to pay out
larre sums of money. the National
surety alone having paid ont
over 100000. every dollar of "hlrhh
however. has been recovered, WIN Ha-
terest.
ct am the chairman of the commit
too to whom the matter is referred.
The committee has not as yet been
lble to for any concrete plan OF pro-
position, but we expect to take up 'n'
matter at an early date. ana II il De
possible for us 70 10 so. we shall al
ford relief to such national banks
wherever II can be done with saiety
to ourselves"
II is a matter Of general comment
the republican senators from
the eastern and middle western states
ana throughout an the states OF the
far west. that some republican s'na
tors from a fcw Of the MISSISSIPPI
Valley states have carried their op-
position to protection to the extent
OF opposing practically every mcroase
In rates. or the retention Of the Ding
ley rates. upon the theory as thty
have announced ". hat the republican
party pledged Itself IN it's last convcn-
ton and in In campaign TO n down
ward revision of the tariff
This attitude is assumed by these
f0n3tors IN the INV OF INV i'i''
platform itself. and tn" frank d"flaf-
by President Taft. in his letter
Of acceptance. that there would be
found instances throughout b sch"d-
ules of the tarin law. when the bus
incss Of revision was undertaken
where there should be substantial I'M
c~reases as well as reductions tn duties
the policy Of protection is 10 be
maintained In the spirit for which the
party stands