The Guthrie daily leader. [volume] (Guthrie, Okla.) 1893-1996, 1909-10-02
OKLAHOMA BANKING


Two years ago this month. after
ten yeals Of prosperity and when the
average man was operating business
on wide scale. the news flashed over
the wires that banks were refusing to
pay their depositors-in short, there
was not half money enough in the
banks to carry on the tremendous
operations then bargained for.
oklahoma hanks were in a prosper.
gus condition The two territories
had been in the heat OF an election to
choose state officers, the first for the
forty-sixth commonwealth.
The panic was eotJly bad for the
territories. because they we're so soon
to be made state, with oklahoma
Territory coming to the inaugural al
tar with patched up bunch of Ne
braska-territoriai laws: Indian Ter.
ritory having been ruled by depart
ment. with the majority Of ! = cities
chartered under the law of Arkansas
The money eenters refused to allow
country bankers to withdraw their
funds ami in this as in the majority
OF states five or ten dollars was all
the local bankers would allow their
deposiioes % withdraw at one time
Far sixty days developments WAS
stopped Mines were shut down, oil
operations ceased, factories closed
and railway construction work stop
ped, thousands OF honest tollers be-
ing thrown out of work.
If the midst of that panic Gov
ernor Haskell was inaugurated. the
First Legislature convened, and the
greatest product OF that six months
session was the Oklahoma guarantee
OF bank deposits act.
From the day the message of Gov
ernor Haskell, asking the legislature
to pass such law, until the state took
over the Columbia Trust concern at
Oklahoma City this week. the act
and the principle of the law have
been subjected to the most CALLING
fire from the old school bankers, and
Il can be 5 Id tina there were most
unjust assaults made TO hinder The
new law being made 4 success: some
times untruthful statements in the
hope or creating dis,iust
Like all other eif0Ws faihered hy
envy and moiheFed by bad comHfe-
Acnsion ibe assaults made against
the principle OF the law and the az
tempt TO make il lose credit. espec-
tally since the Oklahoma City occur
renee, became the lnstrumentality
which proves to the world the law is
the best In the entire United States
insofar as protection Of the deposi.
0rs is concerned
In a failure at Oklahoma City un'
der tho old system Of finance with
"a similar list Of deposits half dozen
smalier banks would have failed lhg
depotiiais would have had their mon
ey tied an hy an expensive recenei
Tor months bills could not have becr
paid. business interests would have
been lost. and for two years there
would have been distrust and lack
OF faith between man and man Ii
that community; loss of credit BY
that particular community with sur
rounding cities and towns.
Under the guarantee law the : ate
takes charge and opens the doors
of the bank, paying depositors theiI
money. Outside banks holding re
serves in the fallen bank are giyer
their money, their patrons under
stand and there Is the same applica
ion to business No clamor: no un
rest 30 donht 40 rec'imination mol
business suspension among depositori
because OF funds being tied up
Now, candidly and without preiu
dice, which Is the way you would pre-
fer. II it fell to your LOT to be a de
positor in bank that failed?
The Leader has often stated II be
lieyed that In much less than tel
years after the passage Of the Okla
homa law every state in the Unioi
will guarantee deposits, (unless th'
Government makes a National guar
anleel and thai no other kind of |
bank would be recognized by deposit
ors That this view Is correct ther'
Is no longer doubt Human a5ilit,
can pct be made perfect: therefor'
the law may never be perfect. but, OF
the other side, neither win there eve
be time when banks will not fai
nor time when a bank with mil
lions Of deposits not guaranteed cal
fail aud not stagnate business In IL
city for months The state Is power
ful because It is the whole people. |
can give to the corporation the rlgh
of bank charter. taking charge tn
moment hi. charter HI he'rg used y
manner that may work great harm
10 any one or considerable numbe
OF lie people Of that state.
Oklahoma state banking has be
come = commercial safety valve 70