The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1909-04-15
BANK COMMISSIONERS REPLY
TO ATTACK ON BANKING LAW

that 10 is only necessary 10 call
your attention to the fact that under
the national and oklahoma state call
of February Eve make calls ON
the same days as nationalist. the ma
tiunal banks held a. per cent re-.
serve. while the state banks held
1913 per cent showing the state
banks to be financially stronger
than the national banks. So FAR as !
have been able 10 find out. there Is
not another state n this union
whose banks can show reserve equal
to this. II this does not show con.
scrvatism In wonderful degree. it
does not show anything
II has been charged frequently by
men who are ignorant of the facts, q.
who wilrully knowingly and prcmcdi-
tatcdly misrcprcscut them that tht
state bankers OF oklahoma in order to
get business were paying oNorbitant
rates ON time deposits. In this con
ucctiun. | want to add that national
banks are converting into state banks
almost daily Examinations show I'm
every instance tcNccpt twoD thdt tho
national banks are paying four to scy.
en- per cent ON time deposits. while
under our guaranty law a state bank
is not permitted TO pay greater rate
of interest than three per cent on de-
posits where left for less length of
time than six months, and four per
cent if left longer am pleased to
say that the state bankers almost
without exception are complying
strictly with the ruling of this depart
mcnt in this respect.
Again ho says that the mania for
starting new banks is not confined to
the towns He says In the little vii
lagc of Harrah. which has about one
hundred and fifty inhabitants. two
banks have been established and their
total dcposIts are less thau fifteen
thousand dollars / have sworn state
mcnts in this Office. by the Harrah
State bank and the state Bank ul
Commerce Wudcr call of February -.
showing deposits of about fifty tho
sand dollars. This is fair sample of
the reckless statements made by Mr..
Webster lie further states that men
of doubtful character are allowed TO
organize banks i'm oklahoma and
states that one of the new banks had
4 Hlt..l lts,.I ttLlH
been released from the state pcni-
tcntiary This statement is so abso
lutoly ridiculous and utterly false that
it does not deserve notice at my
hands and / am quite sure the intclli-
gent readers Of your journal will not
, give il the slightest credit He openly
, charges that saloon keepers and dis.
reputable men generally are permit
ted TO go into the banking business
I'm this state This is another one OF
his reckless statements unsupported
>. by facts
, He refers TO two state bank failures.
There hasn't been a single state bank
failure i'm Oklahoma since this law
! went into operation and the guaranty
II fund has never suffered one dollar.
He refers to the closing Of the Inter
- national Bank of Coalgate and tries TO
L make the public believe that it was
!. done for political purposes. II. II.
a Smock. the bank commissioner AT that
10 time, Is as loyal a republican as can
N be- found anywhere. lie certainly had
a no desire TO do anything that would
"A aid the democratic party. He closed
" were nsolycnt. but because they had
NJ violated the law i'm permitting the
" president and cashier to use the funds
~ Of the bank, notwithstanding he did
Is everything in his power 10 get then
pr TO replace the money and Othcrwis'
n. comply with the law Under our law'
II. active officials of bank can ncithe
H. directly or indirectly use it's funds anO
b. the officer so using said funds is deem
ne ed guilty of larceny The directors o
ne the bank al Coalgatc expressed thcl
If. thanks and gratitude to the ban
d, commissioner for closing the doors q
re this bank 1t was not a matter Of th
", banks condition, but purely one c
ty violating the law that caused the con
lr- missioner to take such radical step
yn | want To say that this VIII be done
be every instance where the bank +,
fuses to comply with this feature {
la. the law
or Again he says that most peopI
IN overlook the fact that eighJy-fiyc
lly ninety per cent Of all bank deposit
as are created by loans. | am real
ay glad that Mr.. Webster made th
of statement It will, at least, show III