The Boise citizen. (Boise, Idaho) 1906-1910, 1910-09-02

make the banks and hoard money the
banks
In where banks have failed all OF the deposits were i'm
medatey transferred other banks goes hiding
" It has brought from hiding unexpectedly large fund OF
currency by giving confidence This
most important increase in deposits
(3) 1t has fulfilled every expectation under the crucial
( 1t has added greatly the banking resources the State
and therefore to the commercial prestige and power Of the State
(5) 1t has encouraged reckless banking opponents
pophed has had the contrary effect OF promoting sound
banking The bankers Of the drawing
forbid high OF interest be paid for deposits preventing
improper invitation OF deposits.
The law also provided against high loans
thus preventing imprden loans which would hazard the principal
Some OF the large central city banks have carried
propaganda against this system the belief that making the de-
poto Of small banks would take away from the cy de
posts which the city banks would otherwise obtain BY virtue Of their
good reputation for stability and safety
The fact IS the city banks largely the repositories the
plus OF country banks and they have been benefited by the Oklahoma
system for the that the deposits small banks
grown the larger banks naturally become the OF the
smaller banks
The State banks OF Oklahoma had s18OooOoo OF deposits when
the Oklahoma effect February Since
time l63 State banks were chartered including sevetree
versions from National banks to State banks up to the report Of June
The number OF State banks has increased from 40 to &C.,
November 16 1909 and the individual deposits in State banks in
creased from S1S000000 S47775,000.
The National banks February H. 1908 312 in Oklahoma
On June 23 1909 there 2 ninety National banks having
lquidated guaranty effect
The average held for the State banks. November 16
1909 was per substantial held by
the Bank of England
The National banks have not increased in deposits any
stana extent the National banks having had SIS 29s 900 Feb
ary A. 1905 and June 1909 but entitled to
of deposits transferred from the National bank
ing system the State banking system by the conversion OF National
banks
The State Of Oklahoma best banking system the
United States protects the small depotor and gives him
trbued such meaaner that not felt by any OF the contributing
banks after ALL merely mutual insurance plain the insurance
fund being administered by the State.
established the first National bank Oklahoma and presI
years and admire the record Of the National banking
system OF the last as far as the safety to the dePotor
concerned Yet cannot forget the violent disturbance 20 conn
and the injury bank depotors which followed the en-
arassen OF the National Bank OF Commerce OF Kansas City
fine institution with deposits of S25OOOOOO which paid
in cash over 100000 before closing doors This tragedy was
cue to suspicion excited by circular letter OF oil
company advising against taking drafts this bank at the time OF
The Walsh failure in Chicago the Morse Henze failures
A y greatly disturbed the country when there was no suf
6cen reason to Justify it and fund would have
made such catastrophe impossible 1t unfortunate that the en-
mower OF the great central banks should encouraging the
opposition to a and sound the bank deposors
guaranty pa-a mutual insurance plan hundreth part OF one
er cent Of deposits would uce for insurance and the stability
g system of the country would be greatly promoted BY this method
applied both to State and National banks
The banks require give security Tor oar le
State ought require the banks to secure their dePosto VIII
he better for the depoor and better for the banker but what OF
more importance Will be better for the stability OF the commerce
and he business interests Of the people OF the United States
The Postal Saving system but another form OF the guaranty
bank deposits but much farther than the limited aoy o.
guaranty fund contributed TO by the banks IL goes IaheT
mo direct and unlimited liability the nation 1t an unlimited
ty athought thoroughly justified mention this because the
hostility to the bank deposors plan has offered the obJec
that FIRST involves the Government liability and second
tel liability The bank guaranty fund involves the Govern
n neither in limited unlimited liability except for the sate
Guarding of the itself contributed by the bankers engaged m te
insurance plan while the Postal Savings system does Dotl
On February 25 1910 presented this matter some length
~ the Senate together with copy OF the Oklahoma Statute 50
- make available the Oklahoma system that that other States
- a. ;o,. its benefits if they inclined 70 do so
= Bad.ey Mrs McFadden, McBiney Iyer Powers and
D, can now contemplate the method by winch Brady atti
+ - ao1 clean sel-ou Of the dry legislative ticket
w W. - Colonel Sam A[ver charge Of the Brady forces