The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1909-01-08

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deposits iu the state banks amounted
70 SiN.O32 .2SI9l On May I they had
! jumped TO s2O.3S7.SS7Oj. On July -
the deposits had reached total Of
S2I2lG.5269 9G. and on Sept q they
had jumped to S2i97t.1i7iG. an in.
| crease Of s37jIG2O in two months.
and of $G.93s. .SG2 n seven months
10 has been claimed BY opponents
of The guaranty law that a large
/ part of the Increase in the deposits
Of the state banks has been due'
To The transfer OF the states funds
1 from the national to the state banks.
| but as matter Of fact little OF
the Increase. II any can be attrib-
utcd TO that cause. Although the
state has a school fund of $jOOo.O 600
there is at present only about 5000.
0Oo iu cash OF the fund The remain.
der of the money was uaid out
early in the spring in purchasing
state and county bonds ana farm
mortgages and H. is figured that the
greater part Of this money went out.
side th" state or into the hands of
the national banks which hell war.
rants which were redeemed with the
/ money secured from the sale of the
bonds on Nov. 20 there was s60S. 1872
cash In the school fund and. accord.
ing 10 a statement made by the com.
missioner in charge Of this fund.
$2l3.G61 was on deposit in national
banks and s395.l25 in state banks.
There is at present about 81 900.
00o cash in the state general rev.
enk fund ami, according to the
records in the office of the state
treasurer this is divided about equal.
ly between the state and national
banks.
The greater part of the new banks
which have been established during
IN" past year are located in small
towns. Three new banks have been
started In Oklahoma City and four
| In Muskogee, but the greatest activ.
ity has been shown in the country
districts. II is admitted that this
| has resulted in the establishment of
more banks than are needed in some
/ localities although ~, friends OF the
law claim that this condition does
not prevail TO such an extent as to
! entitlc 1t TO be used as an argument
against the law
The most striking instance of over
crowdlng is found in the little town
Of Prague, which has population
of about 1000 persons There al
ready were three banks in the town
and an application was made to the
secretary of state for a charter for
a fourth Bank Commissioner re-
fused 70 approve the application on
the ground that the town was not
large enough to support four banking
institutions. The applicants appealed
10 the courts. and Judge \. II. Hus.
ton. in the district court. rendered
a decision in their favor. holding
that charter must Dee issued To any
corporation asking for IL, when IN,
papers are properly executed. This
decision has recently been sustained
by the state supreme court. with tho
result that the doors are now thrown
open for the organization of any
number Of banks.
There has been no real test of the
law as far as the payment of losses
' out Of the guaranty fund is concern
ed There has been but one failure
J since the law went into effect and
D, in that case the charge was made
: that the bank was closed for polit.
ical purposes In order To demonstrate
the efficiency of the guaranty law
\ bank at Coalgatc was closed by
the bank commissioner and the de,
positors were Immediately paid in
fun, about $4,000 being taken from
the guaranty fund for that purpose
The bank was found to be good, how
ever. ana when its assets were real.
i2cd upon the money taken from the
guaranty fund was returned As a re.
/ suit mo- additional assessment was
. necessary to rcplenish the fund and
. this su.callod failure could not be- re.
gurlod as furnishing test of the