Omaha daily bee., 1909-01-16
twenty-five Per Cent Given Depos-
itors in Sixty Gays.
FEATURES BESIDES GUARANTY
Bill Regulates Practically Entire
Business Of Bank.
NO ovERDRAFTs BY OFFICERS
Bank CommissiOner TO Have Author
ity TO FIX the Rate OF Interest
Which Banks May Pay
for Deposits.
CFrom a Staff Correspondent }

AiENNOl%IN, jan l0-tSpecial )-NtctOr Will
sons banking bill for a guaranty fund to
pay losses complete In one year after fall
ure was introduced in the house today.
The measure represents the ideas of a
number of the more conservative men
among the majority in the legislature and
is In the main a duplication OF the bill
Mr.. Wilson suggested when, before the
Legislature met, a conference was held for
the purpose Of arriving at some agree
ment on the guaranty question. Mr.. Will
son, who Ia a member of the house from
Polk county. Is one of the banking COM
mittee and chairman of the judiciary COM
mittee. having defeated Representative
Shoemaker Of Douglas for the latter honor
after a hard fight.
The bill provides in brief for a guaranty
fund that shall equal eventually PEI
cent Of the average daily deposits Of tn,
banks OF the state. The money shall b,
raised by semi-annual assessment OF ono
fourth OF per cent for eighteen month
and then with assessments of one-twentleth
of 1 per cent during the same intervals
until the sum designated shall have bet
raised. The fund shall be redeposited by
the superintendent of banking in tie
banks making the payment and they shall
give securities to provide for the safety
of the fund. A dividend of Is per O. ut
Is paid to holders of receivers certificat ss
in failed banks within sixty days of the
failure, the difference between the amount
OF the assets and the dividend being ma ie
up out of the guaranty fund. The balance
of the banks indebtedness is provided from
the guaranty fund and assets within ons
year of the date of failure.
The governor is made chief superln-
| tendelt of banks and he is given power
to appoint a deputy superintendent at o. coo
year. and also he is given power TO
appoint banking commission Of three
members at $40 q day and expenses when
| employed.
The bill contains a number OF amend
ments of tho general banking law besides
the specific provisions relative TO bank
guaranty.
Conditions Imposed on Banks.
It regulates the business OF banking de-
claring II to be a quasi-public business and
subject to the control of the state In de-
filming the term bank Mr.. Wilson has
provided for a commercial savings bank
which shall in addition to the exercise of
other powers follow the practice OF repay
ing deposits and making loans both as .
commercial bank and as a savings bank
1t is provided the name of such bank
shall not contain the words guaranty" OF
Insurance or fund"
The entire capital stock OF a state bank
shall be subscribed and at least 30 per cent
paid In before IL shall be authorized to
begin business. but before beginning bust
ness the paid-in capital stock shall be not
less than $4,000 In villages having less than
800 inhabitants: not less than $4,000 for
places of less than 1000; SIS 900 up TO 200
population; $4,000 up to 1000; $4,000 up TO
5000; $4,000 up to 10000; $4,000 up to
$1,000; 10000 in places of over 5000 pop
ulation National state or municipal bonds
shall not constitute in the aggregate mere
than one-half of the psid-up capital stock
and the bank building and lots on which
the same is situated shall not constitute
more than one-third of the paid-in stock
and in no case shall the furniture and fix
lures constitute more than 10 per oent.
Each bank before beginning business shall
pay into the depostors' guaranty fund an
amount equal to / per cent of its paid-ln
capital stock subject to redeposit by the
superintendent of banks. Assessments
against the capital stock OF banks by the
superintendent shall constitute a credit
fund subject to adjustment on the basis OF
its deposits at the end of the sem annual
period in which such bank commences
business. Such 1 per cent payment shall
not be required OF new banks formed by
the reorganization or consolidation OF banks
that have previously compiled with the
provisions Of the act.
Each bank shall deposit g bond equal to
one-third OF Its paid in capital stock in
favor OF the bank for the faithful perform
ance OF its officers.
Charter May he WithhsId.
Before any bank begins business the su-
perintendent must make an examination
into the affairs OF the institution and he
may withhold a charter whenever he has
reason to believe the stockholders OF the
bank are not persons generally recognized
as persons Of financial integrity and re-
sponsibility. A fee of S25 is required for
the issuance OF a charter certificate.
On the failure of any stockholder to pay
the installments on his stock when II is re-
qulred the directors may take It up and
sell 1t. Banks must keep posted In a public
place in the bank complete lists OF stock
holders, their residences and the amount
OF stock held by them. A penalty OF a fine
of from $50 to 500 is imposed for failure to
comply.
Every director must be the owner of at
least 1900 of paid up capital STOCK, un.n-
numbered, and two-thirds OF the directors
must be residents Of the county In which
the bank is located
Each director must, under penalty OF per-
jury, subscribe to an oath that he will per-
form his duties under the law and that he
is the owner in good faith OF the stock IN
this name.
Officers Of the bank must give a bond to
the superintendent Of banks to the amount
of 25 per cent OF the average legal reserve.
Explicit provisions are made against
overdrafts. Officers and employees are
made personally responsible under heavy
penalties against overdrafts.
The superintendent Of banks is given au-
thority to limit the rate OF interes, banhs
may pay on deposits the rates TO be unl.
form within any one congressional district.
but different rates are allowed to be fixed
for commercial deposits and for deposits u
due on time and demand and for savings