The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-11-05
NOTHING HAS OCCURRED
TO Justify DISTRUST
Himself q National Banker, Has
Only Words Of Commentator
Tor Oklahoma Law

Kansas City. Nov. 5.--Senator r. L
Owen. Of Oklahoma. who is stopping
acre. stoutly defends the bank guar
anty law OF 0kahoma, The senator,
IN an interview said
In my judgment nothing has oe.
CURED to justify distrust in the prinei-
pies laid down by the guaranty law OF
Oklahoma.
1T is true thar the Columbia Trust
company failed, but tt IS also true that
bad management or h1rmfW talk
about "A hank may put any Institution
in ligJdatiou.
u DO not pretend to know he cir
CamsJances OF che failure of this state
institution. but / cannot help remark
ing that the American National bank
Of Bartlesyilie, which was a national
bank controlled by Mr. Norton and
nis friends also Went into liquidation,
because Of the same underlying caus-
es.
Shall we denounce the National
bank act. because Mr. Norton's bank
al Bartlesvle, the American Natonai
Went into liQuidltlon?
Believes In System
mot at ALL The National banking
sSstem is one of The finest on carr
and | have been in the National bank
ing business for twenty years and al
my interests now are in the National
banks ana are not m state banks.
Nevertheless, / am firmly convinced
thag the gualanty fund plan is moi
only iudlcious for the state banks, but
should be adopted for the National
banks
The National banks a.e extremely
sale as ii is, taking them as class,
although you occasionally see faii-
ure, due 10 bad management or 10
avoidance Of The safeguards establish
ed By long practice and by statute.
No Reckless Banking
Those who q imOr against the guar
anty fund law, which gives a special
protection TO an ignorant depositur
generally do SO on the ground that il
promotes reckless banking
Nothing Of the kind is true. II does
not promote reckless banking. II pso-
tA1AIn AbAAnEl +titlN bNHhAHE
The Oklahoma law Is conservative
ID this that II forbids bankers pay.
ing over four per cent on time deposits
over three per cent on short time de
posits: forbids bankers taking owe
ZEN per cent fog money; forbids the ai
icers OF a bank, borrowing from the
bank, requires a substantial reserve
To be kept on hand, and has other
safeguards established by law includ-
ng double liability Of the stocknold-
Crs
Jeopardy Not Likely
why should state BANKER VINO
puts up 100000 OF bis own money
and under the double liability is IN
iebted to the depOsltors sl00.000 more
conduct 4 reckless business, and ieu-
pardize the house in which he liyes2
The guaranty fund is limited lia-
biity and is not an unlimited liability.
1T is q very important c0nsidera-
ion because il meets the wholesale
objection, that the conservative man
ought moi TO be entirely responsible
for the losses of the unwise man or
Of the reckless msn The answer 20
this proposition Is he is only rc-
ponslble 10 very small amount
Conflict Bad policy
! think Il very bad policy for a
state to have any hosiiliiies atousad
between the National bankers and
lhe state bankers, although sometimes
conflict Of interest seems 70 be I'M
avoidable. where the y bank has
he guaranty plan an. ,ae National
bank has not.
"The isnof nt. unsuspecting depos
ltor ought ia have this safe guard, 81
as To prevent his having any excite
ment IN times OF financial strngency
lit Is the runs on banks. III times 81
panic, By ignorant oepositors who arc
Heightened that cause the most ter
rible financial disasters
THE fcaf Of ibe deposltor shonld
be prevented by a reasonable guar
anfy fund that will assure him his
money. in ease Of bad management
To prevent panic. Is very important
not only to the depositor, but to ths
siockholders of the banks, whether
state or National. is very important
% the bankers themselves and Is o.
equal importance to the entire com
mercial world which suffers il basl
ness Is paIalyzed. wnen financial pan
ic occurs.
Improvement Suggested
z think The Oklahoma law would
be improved by allowing the contri
lhuting banks 10 elect the state bal.A