Aberdeen herald. [volume] (Aberdeen, Chehalis County, W.T.) 1886-1917, 1911-02-02
Rep. Straub Of Hoquiam In
PRODUCES Bill to Cuaran-
tee Deposits.
BANKS TO BE ASSESSED
For Fund to Pay Depositors
in Case Any State Bank
Becomes Insolvent.

Representative Fred Straub of Ho-
in the legislature, which is attracting
much attention and which is being
considered by the committee on banks
and banking this week.
Mr.. Straub's bill provides that for
! the purpose of providing guaran-
ty fund for the protection of deposi
tors, every bank in the state, except
national banks, shall be subject to
assessment. Within 80 days after the
act becomes law and on December
l, 1911, and on the first of June and
December of each year thereafter,
banking corporations shall file with
the state banking board, created by
this act and consisting of the gov
ernor, state auditor and attorney gen
eral sworn statement showing the
average daily deposits in its banks
for the preceding six months, eXclu-
cured The state banking board then
levies assessment against the capital
stock of the banking corporations as
follows:
What Law Provides
Within so days after the law goes
into effect, one-half of the per cent
of the average daily deposits reuuir-
ed to be made and filed; on January
/. 1912, one-fourth of one per cent
of the average daily deposits as
shown by the statement filed on De-
cember |, 1911; on July /, 1912, one
fourth of one per cent of the average
daily deposits as shown by the state
ment required to be filed on Jane | g.
1912; on January /. 1913, and on the
first days of January thereafter one.
twentieth of one per cent of the aver
age daily deposits as shown by the
the required statements. Banks or
ganized subsequent to the passage
of the act shall pay into the depos-
tors guaranty fund per cent of the
amount of its capital stock and the
banking board is empowered to make
other assessments. If the depositors'
guaranty fund shall from any cause
be depleted or reduced to an amount
less than one per cent of the daily
average deposits as shown by the last
semi-annual statements. the state
banking board shall levy special
assessment against the banking cor
porations.
Board Determines Solvency.
When the state banking board de
termines that an institution is in an
insolvent or unsafe condition it shall
notify the attorney-general who shall
apply to the superior courts of the
county in which such bank is located
for receiver. If the cash that comes
into the hands of the receiver be in
sufficient to pay the claims of the de-
positors, the court in which the re-
ceivership is pending shall determine
the amount required to supply the de-
ticiency and cause the sum to be GER
which shall draw against the deposi-
tors guaranty fund in the amount re-
quired to supply the deficiency and
send the money to the receiver to be
applied on the claims of depositors
Such drafts against the depositors
guaranty fund shall be prO-rated
among the several solvent banks.
The secretary of the banking board
shall be paid a salary of $1,000 and
will be in effect the chief bank exam
iner. He may appoint assistants who
shall draw $500 a year and travel
ing expenses.
Representative Straub declares that
under the law the depositor is abso-
lutely guaranteed against loss in deal
ing with state banking institutions.