The Washington herald., 1909-01-18

Raleigh, y. c., Jan. I7.-whne the mem
bers Of the general assembly appear. for
the most part. to be awaiting more light
on the subject Of State guarantee Of bank
deposits before committing themselves on
the Oklahoma doctrine. still. the chances
for the passage OF any bill ennbodying the
idea are not bright
There is an undercurrent OF strong op-
position among the Democrats. while the
Republican minority VIII be lined UP
solidly against the proposition when It
comes up.
It may be safely said that the general
impression Is that there is no need for
the measure The State banks are re-
garded as the safest institutions in the
Commonwealth, no one having lost any
thing through one Of them in many years
No state Bank Failures.
Representative r A Doughton, Of Al
leghany, one OF the mountain counties. a
member who has been q leader. and a
strong one. for many years. a former
lieutenant governor CT the State. presi-
dent OF a hank himself, has this to say
OF the proposition:
7 an informed that a bill VIII be in
trodueed by Senator Kluttz embodying
the pian- As for me, an opposed TO
II, unless some new arguments should be
brought out stronger than the ones 7
have seen. There is no need for it Who
has lost anything by one Of our State
banks in recent years2 There is more
money in State banks than IN national
banks. A State guarantee would make
ali Just alike 4 man might be years and
years building up a reputation and credit
as a banker, and under the proposed
Law he would set 10 benefit from il"
When asked If he thought the bin
you'd be passed. Nr DOughton replied
that he had no idea Il would
Representative II n Rarshaw. or
Caldwell County, the leader OF the nj
nority by about twenty-eight votes. a
former solicitor OF his judicial district.
in the western part Of the STATE. pledges
the solid Republican vote in opposition 10
any bin OF the kind
why guarantee bank deposits. mere
credit accounts, any more than store
aCcOUnts?" ne asks Our State banks
are the safest institutions We have"
George L Morton, Of Wilmington. long
one OF the conservative leaders in the
house, has this 70 say.
7 am not favorabiy inclined TO the
proposition I cannot feel that II would
be wise 10 take up new things. enter IN
tried fields in the financial world. espe-
cially just after e panic Ike the one We
have gone through. Then, too, fear
il might stir UP a controversy between
the State and national banks that would
shake the faith OF the people in banks IN
general"
Representative T. J. Murphy. Of Gull
ford, former mayor OF Greensboro, a new
member, but a prospective leader said
he had not given the matter much
thought, but was inclined 70 think there
was no need for IT,
The State banks, said he. are really
better of than the national banks. for
the former are allowed 70 invest il real
estate MORTGAGES. than which there IS no
safer secUity in the world while. OF
course, the national banks cannot touch
such security"
Currier FavOrs It.
The senior member from Cumberland
Fayettevine's county. J. h Currie. is
inclined 10 favor the Law, but would limit
its application to those banks whose cap
ital stock IS az least S25.0
Senator Whitehead KIutz OF Salisbury,
who Is president pro TEN OF the senate.
says: I viii support g bill for State
bank deposit guarantee If one is offered
that VIII enbody the salient features OF
~F-o T-F 7----
heiencies that have been shown 70 be
embraced in it left out I NAY introduce
a bill myself"
Senator J. A LOckhart. OF Wadesboro
one OF the younger senators. Is outspoken
IN his opposition 10 a bank guarantee at
this session, and VIII oppose such q bill
although advocated by the majority OF
his party associates on the Democratic
side Of the house.
I Go not believe any bin for State
bank guarantee can be Grsfted.r saws
Senator Locklart, that viii appeal to
me any stronger than the Oklahoma act.
and I would not support a bill ike that
under any consideration. There would
arise sharp competition between State
and national banks for deposits. resu1t-
ing, most probably. in the shaking of
confidence in both among a large class
OF citizens and causing them 10 keen
their money out Of the banks entirely"
Republicans Oppose It.
Senator J. J. Britt, Of Asheville. mi
nority leader on the floor Of the senate.
and Senator Storbuck. Of Winston-Saiem.
one Of the ablest Republican members.
while not caring to give personal state
ments. are outspoken in opposition 10
any bank deposit guarantee legislation.
So there IS little chance for Democrats
who advocate such a law 70 draw anv
votes from the minority 10 make I'd for
the great number Of Democratic members
who viii oppose it.