The Boise citizen. (Boise, Idaho) 1906-1910, 1909-10-22
GOV. HASKELL ON BANK GUARANTY LAW


rhtor Wall Street Journal New York City n Y:
s-In your issue of October referring to the closing of the
Columbia and Trust company Of Oklahoma City by our state
hoard extract the following
~Th bank is necessity Of paving its de-
o in full irrespective Of the Indebtedness OF dpostors to
M bank and do necessary upon the other banks
Il Oklahoma do show that alacty in paving up that
Governor Haskell would doubtless like
The above false Deposors are paid only the
balance Of their account deducng their indebtedness to the
hank which the solvent operating bank would do The
state bankers pay assessments promptly sight draft
Again you say:
III has been said that the guaranty Of
hank deposits either premium bad banking humblg In
Oklahoma it premium bad banking The suspended nt
ton actually had deposit onesixth Of the guaranty fund.-
Oklahoma 500 banks Our present banking law
was passed years ago December during which we
had small failure May The creditors were all paid
within oryeght The draft the guaranty fund was re-
placed within weeks and within weeks the stockholders had
S cents on dollar their stock and thus that incident
closed.
The closing Of the Columbia Bank and Trust company took place
on September this year Immediate payment begun and every
claim presented paid the order in which has
presented during the banking days that have ensued and
the Columbia Bank and Trust company under the charge of the
state banking commissioner has been open regular bank
ing hours longer every day and will continue the end
That gives you bank failures in twenty-five months.
Now kindly what theory you claim that the Oklahoma
banking law hnbug and promotes bad banking Have YOU
where else where out OF OUO DdkS you
failure per year, you anazing banking
purpose finding reckless bankers hmbugs beg that
YOU begin by explaining the Walsh failure in Chicago and the
Bgow failure and dozens of Others within the shadow OF your
printing office where failure the street
ng up patrons depression business and widespread
disaster throughout entire sphere Of influence OF failed in
sttuton
The examples which under your present national bank
ing (Which babarsm grown stale with age and
Inefficient by hundred examples certainly not model
that you would the of Oklahoma or any other
nation
Your reference to portion of guaranty fund being onI
deposit bank was either purpose ignoranty unfair and
OF the does editor who takes the ee
dom of discussing question of fact You should have tod YOU
readers truth guaranty fund there on deposit IN
this bank compliance with law had Its legal poecuo "
enabled convert it into cash in SIX hours
Again you
"A dishonest director exercising the power on th
finance committee could discount his worthless note OF hand ma
turing year ahead with his bank credit his deposit account WI"
the suspend bank and receive in full the amount o W
fictitious deposit from the other banks.
Now, Mr. Editor under separate | am sending you
copy of the Oklahoma bank No such condition coud DC accom-
Psfed Under law You have simply been reading the
banking law and have gotten state law mixed IN your u "
comparison
course men can rob guaranteed bank just as they can rob
any other class of property but the Oklahoma law hey I'D,
dot very short notice to get started away WITH the
Your general statement that the Oklahoma law encourages ~
ranking would ask you advise yourself
Ihere has been quarterly report since tie
law was passed show concusvey that the sl
q Oklahoma stronger than other class OF OaNS " I
STATE do say that the other class OF DanS "
sufficiently strong | do to say that the oNano"" ~
parKs are exceptionally strong
There one thing to add Theorize all you VIII ABOUT '
virtue Of the national banking crticise all you IKE aDou.
Eoc Of the Oklahoma banking law, but the tact remain" y
oNahoma banks creditors get their money any @
0anand In failed national bank he cant get ms "o9 ~
where in the union short Of several months and in many instances
several years and then usually in such partial payments as " :
e equivalent only OF ordinary interest per anlum on mo
with No ho,,A. L. .,rincina1