Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1910-01-21
OKLAHOMA PLAN ON TRIAL

Tho actual workings OF the bank
g post guaranty plan are now being
zen IN oklahoma as they operate IN
iffme Of need, when banks are failing
"a lepositors are demanding their
Honey. This acid test OF the scheme,
SAWS THE Literary Digest, c%onvinces
most Of the editorial observers that it
s unsound. although rs friends MAIN
ia their confidence In IT. II seems
oant IN September the Columbia Bank
ua Trust company OF oklahoma city
went 10 the wall with liabilities OF
e0ie $1,000. 600. which swallowed up
The entire guaranty fund on hand and
compelled the state to call on the
7 other banks FOR more Ttem two other
banks went down. and the demands
on the guaranty fund became so heavy
iihnt some OF the depositors were
asked to accept paper held by the de-
NIT hanks IN place OF cash, and
othcr dopositors have received moth
ms The salt Lake Tribune say that
he smai local depositors were paid
promptly, while the large depositorS
saH Ubn-resldcnts have not been paid
ef al.' The indictments OF the bank
a~fiiyials are being held up by Cover
nor Haskell, SAYS the same paper,
pending an investigation 10y the stat,
banking board.
The governor is quoted hy the Min
aca oils Journal as saying that the
columbia bank fatlcd because it was
very generous in protecting and aid
ing MS friends IN thc oil business.
and that cit SIS q question whether this
generosity was the result OF bad iudg-
ment only or otherwise" Another
report IN an oklahoma paper is that
"top-heovs loans were ma,lc uion
doubtful security and 'this sort of
business led to the circulation of FREE
duent rumors which provoked ap-
prchension and "thc crash was then
inevitable such statements give
point 60 thc criticism frequently made
That thc guaranty plan places a pre-
mium upon reckless banking. As the
Portland orcsonian puts y,
$40 |WNA HH AUG ANNH.AAa HMfAA ANNf 7
ee drawn 500. az ieAitmasr banA, I
wui iuy Asossmruts o. make up th
shortages caused hv thc wiid-catl
bankers There s ausoiutey no mccn-
ur. for s. d,ros.,or to snow prefer /
enc, for safe banks With sueh i
premium on looss nanbins methods
w~iid-eatters have fock,d o. OKLA
homa and by offering Inducements
Which lcsitlmatc bankers could MOT,
ld would net Otter. haNc drawn iH ,
heat> deposits ths; woull never rtach
thru is the deposifor were obliged 10
protect himself b> placing his money
in thc nHnas VI b legitimate banker
oklahoma cannot prevent SIS
numerous tank failures ir thr midst
ef unparalleled prosperity. h IS Il ccr
taint tha, thcr, win Gee plenty ed
trouble tof that suamnt, fund when
the iae'iuhie pcriod ct hari times al-
peata
fh, Denver Repuniiean makes This
pointed comparison between bank
s%tiiares m oklahoma aud in colo.
1fo
Sncc oklahoma adopted thc state
bank suararte ailio it has N.cn have
ms q l~ecidedil mcrg tim, Of % and
tasy cuc II Noa hasv bss,n fstcu-
ins yeu have BEARD ifs backs eoine
1853 raf.-poof wlth "a regularity o.
urrtst thaf thc bursting MAS pror-
crif tirf1 CD aceor1 wan th accnmn-
huon oi cash m thc s@uarancy tand
in fatt o slrerg hss he,n fht cols-
petition amuas tne banks o. loat one
to the raQi ihtns one mlshi
rt tre nrtnucn 10 a new
plan g. eet ri.l uaIlk
colorado had s. bank failure the
day u u. aot vrrg iarse in-
f-uoa 81 q fep taa eilefs Tor
t er tA.as a-s rsihrr httu dis-
raaeei .a th.s state since tne Ycni-