The Mena weekly star., 1909-03-25
CANNOT PARTICIPATE
KANSAS NATIONAL BANKS uN- ABLE TO TAKE ADVANTAGE
 OF GUARANTY LAW.
NOT lEGsL SAYS COMPTROLLER MURRAY
Federal Official Replies to Letters of inquiry of Kansas 5ankers--De. clsres National Banks Cannot Par ticipate In Fund to be Created by Law Passed by Recent Legislature.

Topeka, Kan, Mar. 1s.--The comp. troller of the currency. Lawrence O. Murray, holds that national banks in Kansas cannot participate in the guar anty fund 10 be created under the law passed by the Kansas legislature. This information is contained in let ter received from Mir Murray by w.. ". Bowman of Topeka, secretary of the Kansas Bankers association This letter Is self-explanatory and reads as follows.
 sir. In reply to your inquiry of the 11th instant. you are advised that this office will hold that national banks cannot lawfully participate in the pro posed guaranty of some bank deposits under the bank depositors' guaranty law of Kansas. approved March 6, 1909."
 It answers in full the letters sent to President Taft and Comptroller Murray Tuesday by State Bank Com missioner Dolley Dolley wrote to these two officials enclosing copies of the Kansas law and asking what ac- ton would be taken with reference 10 the participation of national banks un- der the Kansas law. The reply to a letter from MT. Bowman was written by Comptroller Murray before he re ceived Mr. Dolley's letter. but the sit ratsn will probably remain the same.
 The Kansas guaranty law was t.. nc t,x trx Ia | participation of national banks in case the comptroller of the currency would permit 1t. This permission was re- fused Tn the case of Oklahoma, which also has a guaranty law. but the men who drafted the Kansas law were of the opinion that the Kansas law con tained many features which would recommend 1t to the comptroller over the Oklahoma law. However. guar snty law appears to be guaranty law with the comptroller and his reply to the letter of MT. Bowman leaves no doubt as to his position.
 This action on the part of the comp troller is not surprise to the nation al bankers of the state. It has been more or less expected. but hope had been held out since the agitation for a guaranty law in this state started. bankers as to what action will be talk en. It is thought that many will take the easiest way out and turn in their charters and reorganize as state banks. There is movement on, how ever, to get the national banks of the ssate together under the provisions of the Aldrich- -Vreeland bill passed by congress and 1t is likely that meet ing of the State Bankers association will be held some time soon to take up the matter in some form or other.
 T have no authority to say what ao- banks said Mir. Bowman. secretary of the association, Thursday. 'I am secretary of the association, taking in all the banks and this matter af- fccts just a part of the family No one knows what action will be taken, but I would not be surprised to see the national banks of Kansas take ad- vantage of the benefit offered by the Aldrich-Vreeland measure. This Is not in the nature of guaranty law. but is preventive measure It would not help bank or the depositors of a bank which had failed. but 1t would tend to lessen the danger of failures. l cannot say with authority but would suppose that meeting of the association would be held some time soon to see what action Is to be taken before the guaranty law goes into effect June 30 The Aldrich-Vreeland measure would benefit conditions whether or not there is a guaranty law"