The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1912-05-03
GUARANTEE OF BANK
DEPOSITS IS GREAT
BLESSING TO STATE
FIRST COMMISSIONER OF BANKS
OF OKLAHOMA TELLS
OF LAW.
HAS INCREASED The DEPOSITS
Hon. A. M. Young, Former Tennes-
sean. and Until Recently Head Of
the Banking System Of New State,
Is a Visitor to Maury County.

Tic D0uNsu9 SyoeSu W ~" Ss~sS
Is a Visitor to Maury County.
Hon. A. M. Young, the first commits
} sioncr of banks of Oklahoma, is Wis
itor 20 Maury county. Mr.. Young IL
here to attend the big hunt of the
Middle Tennessee Fox Hunters Asso
) citation which Is in progress at vii
Transport. He left Friday afternoon
for that place and will remain there
for about week.
Mr.. Young 10 former Tennes
sean, having been banker at Man
chester and at Wartrace. He is one
of the numerous Tennesseans who
have gone to the West and made
good When the new state of Okla
noma was admitted to the Union he
became the first commissioners OF
banks.
Mr.. Young is an enthusiastic adyo-
cate of the guarantee of bank depos-
its. The law guaranteeing state bank
deposits was put into operation by
Mr.. Young and the benefits have Deen
vast.
There is no doubt about the bene-
fetal effects Of the bank guarantee
law" said Mr.. Young with emphasis.
There may be some bankers in Ok
lahoma who do not approve the law
because it has cost them something
but there is no question about the at
titude of the people. 1t has been a
blessing to them and one that they
appreciate and no political party
would dare favor the repeal of the
law.
"And the law has actually been Of
inestimabie advantage to the banks,
although there are some of the bank
ers who will not agree to this state
ment However, it is easily suscepti-
ole Of proof. Within eighteen months
after the bank guarantee law went
into effect in Oklahoma, the deposits
OF the banks had doubled. When the
law went into effect the bank deposits
were $17,000,000. Now they are more
than s4O,00U,O0O. This of itself is the
best argument that can be given for
the law. The enactment of this meas
lure literally brought millions of dol
lars from hiding places. A banks
reputation is just as delicate as wo-
mans character. Confidence is the
structure upon which our whole LUIS
mess edifice is erected. Once the
people have absolute and implicit
confidence and faith in their banks
panics become practically impossi-
BILE.
"Nct only did the law bring mil
lions of hidden money into the banks
but it brought millions Of dollars
from other states where the people
did not have a bank guarantee law.
The banks have been blessed by the
law. They have prospered as they
could not have prospered without a
guarantee law.
What has the law cost the banks
of the state during the four years
that it has been in operation. About
three percent of the amount of the
deposits. But figuring the deposits
at what they were when the law was
enacted and the cost has been but lit
tie more than one per cent. OF
course the cost will never be so high
again for when the territory was ad-
mitted into the union there we're
scores of weak banks, some of them
of the wild cat order. These have
been weeded out. Then better inspec-
ticn and more rigid examinations
have rendered the banks much safer
so that in the future the losses be-
cause of failed banks will be but
fraction of per cent of the total of
the deposits.
mo depositor in the state of Okla
homa has ever lost cent by reason
of the failure of an Oklahoma bank
since this law went into operation.
Naturally such a measure is hess
ing 10 the people and there is small
wonder that they are opposed to it's
repeal.
And not only have the people rev.
er suffered cent of loss by reason
of the failure of the banks, but they
nave suffered no inconvenience or de-
lay whatever in getting their money.
When the commissioner takes charge
of failed bank the doors are not
even closed but the depositora are
paid lust as soon as their mako do