Audubon Republican. [volume] (Audubon, Iowa) 1894-1925, 1911-02-02
A GUARANTEE FUND
0abney, Of Davis, Presents Bill
to Insure Beposltors From Loss
RAISE MONEY BY ASSESSMENT
One Per Gent Of Daily Bank Deposits
In State VIII Be Made for the
Establishment and Mainte-
nance of the Fund.

Des Moines.-A new bill Great
Ing q depositors guarantee fund to in
sure depositors against loss when
banks become insolvent was present
ed in the house by Representative
Dabney OF Davis county. According to
the provisions of the bill, the fund
will be raised from levies on deposits
OF banks In Iowa and will protect all
depositors from possible loss at the
expense OF the banking institutions.
One per cent of all the daily bank
deposits In the state will be assess
ed for the establishment and mainte-
nance OF the fund. The power to
levy the tax is placed in the hands
OF the state auditor.
In the event that the fund becomes
depleted in any manner the auditor
is empowered to levy an assessment
OF / per cent OF the total deposits OF
the banks within the state to replen-
ish the depositors' guaranty.
Banks organized after the enact
ment Of the bill will be assessed 8
per cent Of their capital at the time
of commencing business. This money
will be turned into the fund.
National banks may voluntarily
avail their depositors of the protec-
ton Of the fund by paying the one
per cent assessment on the daily de-
posits. All banks that comply with
the regulations will be given certifi.
Gates to be displayed in their places
OF business. Those institutions that
do not comply with the law are liza
BILE to be closed by the order of the
state auditor.
The measure provides that any Off
Ger of bank found by, the state aud
itor, or the bank examiner, to be dis
honest, reckless or incompetent, shall
be removed by the board Of directors
of the bank upon written order from
the auditor of state.
After the insolvency of bank, the
state auditor is empowered by the
provision of the bill to take charge Of
the books and papers of the institu-
ton and wind up the affairs. II he can
not settle with the depositors on the
amount of money at hand, the audi
tor shall be authorized to draw from
the guaranty fund. If the stockhcld-
ers prove to the satisfaction OF the
auditor that they can continue the
business of the solvent bank without
danger to the depositors, the auditor
may allow them to DO so by issuing
written permission.
To Close Saloons at Eight O'clock.
Two bills were introduced in the
senate directly affecting the saloon
interests of the state. Both were by
Senator Allen of Jefferson.
The first provides that all saloons
close at s o'clock instead of at 10
O'Clock at night as at present. This
is adopting one feature of the Neb-
raska law, which has q similar re-
quirement. The hour of opening sal
oons-5 o'clock In the morning-is
left unchanged.
The other bill by Senator Aiken
provides in securing consent petitions
the vote of the last general election
Is to be taken. The law now reads
last preceding election" and this,
Senator Allen says, makes 1t possible
for saloon interests or "drys' to take
advantage OF special election or
even a school election.
Another measure of interest was
bill by Senator Smith of Shelby ex-
empting all soldiers property to the
value of $1,000 from taxation. This
includes veterans of the Mexican and
civil WITS I