The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1909-04-15

the Review of Review. State Bank
Commissioner A VI Young nditos
the letter printed below.
1t is not only a mastcrful rcfuta.
tion of the slandcrous article. but
It reflects the spirit of constructive,
progressive, young oklahoma which
challenges blatant error no differ.
oncc from what quartz 30 comes
Guthrie, Okla. April Il. 1903
Journal Of Political Economy. Cm
ago. University, Chicago ILL.,
Dear Sir: My attention has been
called to an article that recently
appeared in your valued journal writ
ten by w G. Wcbst,r and cNtcn.
sively quoted from iu the April
number of the American Review OF
Reviews The statements are SO ab.
solutely erroneous and foreign TO the
facts that ! feel It is my duty as
bank commission that 1t is my duty
bank commissioner OF the state
of Oklahoma to correct them
1t is not my purpose to argue
the merits or dement's of our guar.
antee bank law. l feel quite sure
that it is your desire TO give your
intelligent readers the real facts per
tanning to all business matters. TAX.
ing this view of it, | feel perfectly
justified in addressing this letter
to you.
Taking the charges in the order in
which he mentions them
First beg to say that under our
amended guarantee banking bill an
assessment of one firth yearly Of per
cent Is to be levied ON the aver.
age daily deposits of state ban
with limit any one year not TO oN.
cecd two per cent, which i'm my
judgment removes the most serious
feature of the law. This assessment
is TO continue until guaranty fund
shall have been created equal TO
five per cent of the total deposits
of the state banks: after which only
such assessments will b. made as Is
necessary to keep the guaranty
fund growing in proportion to the
deposits. If. for any reason, the
guaranty fund on hand together
with the two per cent assessment
should prove insufficient TO pay the
depositors of failed banks, the state
banking board is empowered to Is.
sue a six per cent interest bearing
certificate secured by the two per
cent assessment to be made the
following year.
Second-It is true that the attor
ney general of this state rendered
an opinion iu which he said that
the deposits were guaranteed by
the state of Oklahoma, but i'm a
limited way. Acting upon this opin
ion. some few of our banks did ad
yertisc as above, but today, 50 fan
as ( know, there is not ii state bank
in Oklahoma advertising their de
posits as being guaranteed by tn,
state. The recent Legislature passed
law which says "No bank shal
be permitted to advertise its de
posits as guaranteed by the state
of Oklahoma. and any bank or bant
officer or employc, who shall ad
vertise their deposits as guaranteed
by the state of oklahoma. shall be
guilty Of a misdcmeanor and upol
conviction shall be punished by
fine of not exceeding five hundred
dollars or by imprisonment in tn
county Jail for thirty days, or b.
both such fine and Imprisonment
in the discretion Of the trial court.
Third-Hc says that the guarant
fund Is redcpositcd in the bank
and kept loaned by them Fifty p"
cent of these funds have been II
vested in state warrants bearing II
terest al the rate of six per cen
the balance is Kept i'm banks SUI
iect TO check The interest on tn
investments has more than paid IN
expenses Of administering the o
into whose hands these funds ar
entrusted. Under our present law
seventy-fiyc per cont Of the guarant
fund is to bee invested in such s"cu
tiles as the state invests her ow
money twenty-five per cent to J.
kept i'm cash
Fourth-Ho states that the OH
homa law has not closed the doc
of hope against The reckless and d
competent banker, but has actual
opened it much wider than II WI
before, and that the state iod'
seems to be cu,aring upon an era
"Wlld Cat Banking" which If III
checked will ultimately result In
nancial disaster In this connectI'
beg TO say that no man Is pc