The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1912-11-22

iSlature of Oklahoma, an attempt 10
amend the Bank Guardanty Law.
Anent this, the Bank Deposit Guaran-
tee Journal of Vinita, Okla, the only
publication supporting the Guarantee
Law, in the current issue says:
If any of the opporents OF the Guar
anty Law have any hopes of the re-
peal of the Oklahoma law by the next
legislature they might as we'll dispel
that hope, for the people of this state
know, by actual experience, that this
law does protect them fgrom any pos
sibility of loss through the failure of
bank. According to the last report
made to the bank commissioner there
were 621 state banks in oklahoma
The majority of which are small banks
so that it is not Likely that the aver
age number of persons financially in
terested in a bank in Oklahoma is
more than twenty This would make
the total number of bank owners in
Oklahoma, except national bankers,
1880. There are approximately
10000 people in the state who are
affected by a bank failure OF this
number approximately one-fifth or S67,-
900 are voters. 1t is reasonable to
suppose the voters of this state are
going to permit the repeal of law
that absolutely protects them, even
If every banker in the state demanded
the repeal of the law? They certainly
will not. Besides this. majority of
the state bankers of Oklahoma would
not vote to repeal this law. 1t has
been burdensome, it is true as it has
been administered, but it has never
ltheless proven that the state guaranty
Of bank deposits is the only preventa-
tive of depositors' panics and that
lit is a principle come to stay Every
bank failure in Oklahoma has only
emphasized the necessity of such a
law.
Now that this law has proven an
absolute success from the depositors'
standpoint, the proper course to pur-
sue is to make it practical from the
bankers standpoint The money paid
into the Guaranty Fund in the past
would be absolute loss to the banker
| if the law were to be thrown aside
now. For the first time since the
failure of the Columbia Bank and
/ Trust Company, which will foeveT
stand as a blight upon the admins.
tration of the banking department OF
this state, the guaranty fund is able
to care for all outstanding indebted.
mess, or viii be when the last assess.
ment is all collected. Now is the time
to go forward According to the law
of average one-fifth of one per cent
of the average deposits per year would
be three times the amount necessary
to pay all losses if the same precau.
tions are taken to prevent failures
that are used I'M the administration of
the national banking law. Amend the
Guaranty Law SO that the maximum
assessment for any one year, cannot
be more than. one-fifth of one per cent
of the average deposits. If a deficiency
occurs let this be advanced out of the
general taxes derived from state banks
This will give the tax payer direct
interest in the enforcement of the
law, as he is now interested in the
law prohibiting murder and horse steal.
ing. AS another preventative meas.
use secure the enactment of a law
that vii lcause the Imprisonment OF
the officers of failed bank that vio-
lates the regulations of the state bank.
ing department. for so long time
that he will not dare take the risk
that some bankers have in the past.
In addition to this compel every stock
holder in state bank 10 give surety
bond to pay the double liability I'M
posed by the Law npon his stock. Then
make it felony with pezalty OF
from FIVE to twenty years for any Off
Ger OF the state banking department
to permit bank. known to be in an
linsolvent condition or TO be violating
the provisions OF the Guaranty Law,
to continue in business.
When such laws as this are placed
on the statute books of Oklahoma, you,
Mr.. Banker. will not End the burden
Of guaranteed deposits heavy. but viii
find it fhe most beneficial law ever
enacted. The people are protected
now and viii help protect you. unless
you attempt to take away their pro
lection.