The Topeka state journal., 1909-02-20
|LETSlN NEW ONES
Bank Guaranty Law Having
Stormy Course in House.
Limitation on Banks Accepting
Its Provisions Removed.
NOT BE COMPULSORY.
Amendment to Make 1t So LIS
Voted Down.
Speaker DOlley Leads Fight for
Passage of Bill.
NOT BE COMPULSORY.

/ measure
The first material change to De
made in the bill was on the motlon Dy
Edwards of Greenwood, Republican
and chairman of the committee tnat
drafted it, This change wipes out the
voluntary section as it affects ABOUT
| one-third of the banks of the state by
admitting new banks in new towns
and also new banks in old towns to
| join the guaranty association where
the old banks refuse to join The
committee bill required that no bank
could guarantee deposits under the
act that had not been established IN
business for at least one year
The next amendment reduced the
| necessary paid up surplus fund from
| 20 to 10 per cent of the panK capila1
stock.
The third important amendment,
by Watson of Allen, included IN tne
guaranty clause bank deposits In other
banks bearing interest not over
8 per cent a year on daily DalanceS
provided that no deposit shall be OF
greater amount than SO, ,OOo
The Flanagan amendment TO CUT
off all time deposits from the
guaranty clause was contested for an
hour or more and only beaten aIter
a roll call vote 33 to SO. After TINS
fight the house adjourned until today.
Speaker DolIey led the fight for the
passage of the bill In the neat OF
debate the speaker said: II lnis ls.!l paIi
becomes a law there will be n1teen
millions of Missouri money deposited
in the banks of Kansas City, Kan.
'"The gentlemen talk of the Okla
homa guaranty law 1 want TO say
that I regard it as no law at all II
is the illegitimate offspring OF d reai
law" +ha
Davis of Kiowa, speaking on the
amendment to eliminate time GER
tifcates from guaranty, SAID: am
opposed to guaranty OIL TIME 90. 80
tifcates at all. Il You nave no more
right to require the banks TO
guarantee them than you would nave
to require the guaranty of real estate
mortgages on loans
While the bill has been amended TO
considerable, extent and a part OF It's
original purpose changed. yet there mas
been no vital wound inflicted on the
bill. It's effectiveness has not been
The debate. on this bill exceeds any
thing before attempted in this most
taIkative house. After talking for an
hour or more on. an amendnleHt INC
members consume another hour IN eX-
plaining their votes on roll can Ihe
old PoDulist house was an assemDlage OF
deaf mutes compared to the square oeai
house of 1909. Talk, oratory, argunents'
world without end Not one or ten Of
tenders but a legion talk until 1t seems
that only the crack of doom can stop
them or the blast OF Gabr1eTS trumpet
Even the house 1CSeH SelS IlASO oOiAO
times and tries to stop some long
1rinded member and the speaker tries
700 but generally without avail Wnen
the debate began on the guaranty Dill
FRIDAY some one moved the previous
question but the motion was voted
down. Only an earthquake or some
other visitation of providence can
check this house in debate.
Tho sneech of Foley of Rice, in sup
mort of his substitute for the commit
tee bank guaranty bill was the feature
Of the house session Friday. The NIL
noritv leader is one of the ablest mem
bers ON the floor of the house and his
common sense and fairness are sucn
that he always gets close attennon
from both sides of the mouse Wnen ne
takes the floor. Foley always has some
thing to say when he gets up and ne
nuts the matter concisely and with
force. .c- ,4 .,
o,.1arase NC nv gratitude at this time to |
The members of the house for their
courtesy toward my long amendment |
and their attention while 1t was pelng
read I am not an obstructo1n1st Ny |
ohiect in preparing this amendment is |
to give Kansas the best guaranty law
possible 1 have only praise Tor the
banking committee of TINS mouse. us
members worked long ana ia1th1uIly |
on the committee bill and they have !
drafted a good bill, too. l agree with
most of its provisions. But there is
on that L
onestion of whether or not the observ-
ance of the law is to be voluntary or |
compulsory on the part OF the pank-
ers of the state. want the law made |
comnulsory My amendment provides
that the bankers must either quit |
business within six months after the |
passage of this act or join the guar
anty association. Guaranty or de-
nnsits will be a failure if it is not |
made compulsory. There are now |
two classes of banks in the state, ma |
tfonaI and state banks. II voluntary |
guaranty law is enacted 1t VIII create
fhree classes of banks, national and !
state banks within the association |
and banks outside of the association: |
stThe national banks are now and |
always will be bitterly opposed to the
guaranty law. Even the majority OF |
the state banks do not favor It, Not
half of the banks in this state Will |
ioin the association unless compelled |
to. The big banks especially Will be
Inclined to keep out The result will |
be that the association Will be weak,
composed only of smaller banks and |
the object of the bill which is the pro
lection of all of the depositors in the |
defeated by the committee bill.
There is another objection to this |
committee BILL 1t forbids banks from
joining the guaranty association un-
less they have been established Tor one
year. This is unjust. Assuming that |
guaranty of deposits is right in prin- |
force a law upon them that they do |
not want and then deny them the
protection that their deposftors al |
1sUnder the committee bill when a |
bank becomes insolvent there is no |
definite time set for the depositors to |
realize on their money. 1t takes from
three to FIVE years to wind up the |
affairs of a defunct bank under the |
double liability clause My amend |
ment provides that depositors shall be ]