Semi-weekly herald., 1909-01-14
The original draft Of The IN, /,


The original draft Of the bill wss
prepared by former Gov. C. g Thomas,
after which 1t was submitted to cam
Gus OF the state executive officefs.
They subjected number of changes
and Mr.. Thomas has made a final 70.
vision of his work
A caucus OF the Democratic mem
bers of both houses will be held To
consider the measure and when the
majority's stamp OF approval is af-
bxed the bill viii be started on its
way In the lower house.
The bill provides for the creation of
n state banking board which shall be
composed of the governor, the state
treasurer and The attorney general.
and these shall have supervision and
management OF the state banking fund
and of the depositors' guaranty fund.
The depositors' guaranty fund shall
be raised by an assessment Of l Der
cent on each banks daily average de.
posits, less the deposits OF the United
States, the state. county and municf.
pal funds, providing such funds are
otherwise secured.
| Provision Is made to adjust the
assessments by increasing the amount
II the daily average deposits increase
and to refund the equitable proportion
OF the l per cent assessment IL the
deposits show n decrease.
New banks which may be organized
subsequent to the passage OF the act
shall be required to pay per cent
assessment on their capital stock, and
this shall constitute a credit fund
subject to adjustment upon the basis
of their respective deposits. This 3
per cert assessment on their capital
stock, and this shall constitute cred.
u tund subject to adjustment upon
the basis OF their respective deposits.
This per cent assessment does not
apply to banks reorganizng or to con-
solidations OF existing banks which
have previously complied with the
terms OF the act.
Ample provision is seemingly made
Tor the protection OF depositors In
case OF Insolvency OF any banking cor
poration. The section reads:
when the bank commissioner takes
possession the unsecured depositors
shall be paid in full.
When the cash OF the bank which
can be made Immediately available ia
Insufficient. the state banking board
shall draw from the depositors' guar
anty fund the amount necessary to
make up such deficiency.
The state banking board shall have
n first lien upon all of the assets Of
such bank and upon all liabilities
against the stockholders. officers and
directors OF such bank. and against all
other persons, corporations or firms
Indebted thereto.
The guaranty fund may be deposit.
ed by the state treasurer. subject to
the approval Of the state banking
board. with any bank or banks In the
state. But the amount deposited with
any one bank must not exceed per
cent of Its paid-up capital.
THE depository bank must execute
bonds of indemnity therefor condition
ed as now provided for the deposits
of other state funds. The depository
banks must pay interest on such de-
posits at q rate not less than 2h per
cent per annum, which shall be paid
seni-annually and credited to the prin.
cipal of the guaranty fund"
The measure also provides that not
more than per cent interest shall be
paid by the banks to their depositors.
This is designed as a move towards
safe banking.
The sum OF $4,000 is to be appro
priated to carry out the provisions Of
the act.