The farmer and mechanic. [volume] (Raleigh, N.C.) 18??-19??, 1909-01-26

ter. There should be some way of
regulating the number of banks that
nay be established in a certain COM
munity, but the Legislature can be
relied upon to supply this deficiency.
There is nothing, to my min
in the argument that there might be
an epidemic of banking failures which
would require the leVylng OF Such
heavy assessments as would cripple
the remaining banks. OF course,
there is a possibility of such a con-
dition, but this possibility is so re-
mote that it need not be seriously
considered. All business is
upon the law of probabilities and
possibilities. 1t is not to be supposed
h a an insurance company would IN
sure the lives or property OF a com
munity if it expected that
ty to be swept by an epidemic or a
conflagration. If they had to take
such a possibility into consideration
they could not write any insurance.
The same rule Will apply to almost
every kind of business, and there is
no reason why it should not apply IN.
the insurance of bank deposits
Mr.. Eastman declares that the
popularity of the guarantee law
among depositors is shown by the
fact that the Oklahoma banks are
receiving hundreds of thousands OF
dollars in deposits from other states.
He declares hat his bank alone mas
deposits ag~gregating $4,000 from
other States. The books of the bank
show deposits made by residents OF
Nebraska, Iowa, Texas, Illinois, Wis
consin, Michigan and other States as
far distant as California. THESE de-
posts have been obtained without any
advertising on the part of the bank
outside of Oklahoma, but the BAN
has undoubtedly benefited from the
aGunrfiSino 6nno nv other banks.
Many Oklahoma banks have been
conducting an advertising campaign
in other States. The greater part OF
the deposits are coming from adj
joining States, as the advertising has
been placed chiefly in nearby States.
but that the deposits are not confined
to those States is shown by the books
Of the Oklahoma State Bank.
One of the most notable successes
from those banks that have advertis-
Cd for deposits is the Trust
Company, Of Muskogee. President j.
B.. Jones is responsible for the plan
which secured for them deposits
from over twenty-five States in less
than thirty days after the plan was
~inaugurated.
There is no doubt out that the
guarantee law is popular with a large
majority of the depositors. Many of
the large depCSitOrS have no faith in
the system and regard their money
as more secure when deposited in the
National banks than in h State
banks which are subject to the pro-
vision of the guarantee law, but the
idea of having their deposits guar
antced appeals to the depOsitOrs as a
class. DR.. N. F. Jackson, president
of the Muskogee Drug Company. of
Muskogee, may be taken as typical
of the average depositor. DR.. Jack
son is a bitter political enemy of
Governor Haskell, n consequently
his views can not be regarded as be-
ing colored by political prejudice.
From the viewpoint of the de-
positor,' DR.. Jackson declared, I do
not see how there can be any oppo-
sition to the deposit guarantee sys-
tenn. 1t gives the depositor a pro-
lection which has been badly need
ed. 1t protects the depositor against
the WrOng-dOing or Incompetence of
bank. officials, over whom he has no
control, ana makes it certain that
when he puts his money in a bank
he Will get it back. Without such
protection the depositor must rely
entirely upon the honesty and ability
OF the men to whom he entrustS his
money. There is no doubt but that
the law has injured the National
banks, but it is a question of the
greatest good to the greatest number,
and the fact that a few people must
Suffer is not a sufficient reason for de-
priVing the great body of depositors
of the projections which this law af-
fofds them. With proper supervision
over the banks, l do not see any dan
ger in the system
Governor Haskell the father of
the guarantee law, says: The assail- !
ants of the law have grossly misrep-
resented the situation In a recent
talk he said: Here is an instance
of the way they have lied about this
matter. Here is a newspaper article
published during the recent campaign,
in which the statement is made that
n bank has been Offering to pay s
per cent interest on deposits. This
story has been told a thousand times
by those who have attempted to dis
credit the law, but not once has it
been told that this occurred soon af- |
ter the law went into effect and thai
the bank was forced to withdraw the
offer as 500 as it came to the atten-
ton of the bank commissioner. The
statement hat the State administra-s
ton has swelled the deposits in the
State banks by depositing all the
State funds and the honey in the
school fun in the State banks is also
a lie. The statement has been made
tim4after time when an investigation
No have shown it was not true. AS
te 51to of fact hschool fund early
ring and most of it went out
W lie state. There is now only
100000 in the sch Dol fund ant
lat amount more than $500, 600 is
in National Banks. The
cash in the general revenue fund is
divided about equally between the Ma
and State banks.
1.-The facts regarding the number
of new banks established since the
guarantee law went into effect are
grossly misrepresented. The
number of new banks is not larger
than might be expected in a new
State during the first year of state
hood. The population of Kansas is
probably only about 10 per cent larger
than Oklahoma, yet that State has so
per cent. more State banks than Ok
lahOlna. This would indicate that
Oklahoma has not an excessive num-
her of such institutions. When the
number Of new banks is mentioned it
is not taken into consideration that
tWenty-tOur old private banks and
individual bankers in Indian Territory
became State banks after Oklahoma