Omaha daily bee., 1909-06-27

The governor I'm q recent address de-
clared that the people of the state de-
manded the passage Of this guarantee law
and intimates dire results to whose who
would oppose the will OF the people by
litigation.
II the people really demanded the pas
sage Of a guarantee law which, however,
may Of itself be doubted, the question not
being a direct issue In the last election
It may be safely asserted that the demand
from whoever 1t came was not for a more
make believe guaranty, but for some
thing at least as definite and complete as
the Oklahoma law.
The grounds upon which the legality OF
the law may be attacked seem plainly APP
parent to even the layman-
Doubtless the proposed action Of the
united banks to prevent the law going into
operation, will be prosecuted in the federal
courts. There the simple proposition is
presented, whether under any process Of
law, a bank can be compelled to con-
tribute from its cash resources to the
uses and purposes of another institution.
But the violation Of our state consti-
tuition seem still more apparent.
Take for instance the technical question
Of title.
Our constitution requires that no bill
shall contain more than one subject. and
the same shall be clearly expressed In its
title.
In order to meet this requirement the
title of our present banking law is con.
tained in thirty-six lines-that of the new
law has less than five lines. 1t is con-
densed in the words regulation, supervis-
ion and control of the banking business.
All banking laws are for these purposes
and no one reading this title could gather
therefrom that the bill contained the un.
usual and extraordinary provision for al
enforced mutual guarantee. fund and fol
the levy Of q special tax upon the capita
stock of the banks to maintain the same
The authority for the legislature to levy
taxes for any purpose must be derived
from the constitution.
The constitution authorizes a levy foI
revenue purposes only, and then this levy
If upon property, must be by valuation
in such q manner as to be equal, anC
upon occupations, II must be uniform a!
to the class upon which II operates.
No one will claim that the tax proposed
is for revenue purposes, and IL It was so 1
would be unequal.
The tax is levied upon the capital stock
not by valuation, but in proportion to de
posts. In this manner a bank having
capital of the actual value of $25, 900 ma!
be taxed ten times more than a bank hav
ing ten times it's capital.
The deposits of a bank constitute IL
debts, and this law undertakes to tax no
upon the value Of the banks property, bu
; upon the volume of its debts.
1t was asserted by those having charg
OF the measure in the legislature that abb
, legal talent was engaged In It's preparation
| and that 1t would stand all legal tests. l
| that is 30, then certainly no harm will b
| done by the demonstration of the fact.
E On the other hand, the danger is appar
ent II the law should be permitted to g
e into effect and no contest is made unit
perhaps five or ten years hence, when IN
3 occasion arises for the use OF the guaran
. tee fund.
The action now being taken by the bank
is not only in the furtherance OF their ow
personal interests, but 1t is in the interes
Of the public as we'll, and bank depositor
who will be the main beneficiaries, must |
the end, IL they do not do so now, cor
= daily approve Of the course adopted.
HENRY w. YATES.
OMAHA, June "a, 1909.