The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1913-11-29
DoNALDsoNy11LE LA SATURDAY. NOVEMBER 80 1918
PROTECTION FOR 0EPOsIT0Rs

| .
Bank Guarantee Law Should be En-
| acted to Safeguard Peoples In.
terest-Depositors Take All the
Chances and Have No Security
| Against Loss.
(By Charles E. sehWing, in Plaque
mine Champion.)
| A subject which is and should be
of more than passing interest to the
people of louisiana is that of the
guarantee OF bank deposits by the
state. OF courses lu is We'll under
stood that in certain circles 1t IS
akin to a sacrilege 10 even mentlon
a matter Of such large public con-
cern. From the point OF view OF this
corerie the masses need NO protec-
ton. To them, according to their
calculations, the depositors should
take all the chances. Through their
influence and control the masses OF
! depositors doing business with the
hanks of Louisiana are denied Ihe
protection they are thoroughly en-
RL1tlea to under a guarantee law. AS
conditions are at the present time,
a person going to q bank to borrow
a thousand dollars must put up Sc
/ curly. The bank must be Well Sc
cured against loss. Yet this same
| person, when he goes to deposit a
thousand dollars gess only pass
hoo:- in return. The depositor IS
! given no security at all, no guarantee
that he will get his money back IN
case OF bank failure.
/ r stands to reason as matter OF
clear common sense that even as
the bank is protected against loss by
recurring security IN the shape OF
mortgages, endorsements, and the
like, lust SO should the depositors be
projected. And that protection should
be in the shape OF an endorsement
by the state, a guarantee by the state
to the depositor that when ne puts
his money in bank he will be per-
tectly safe and sure of its return
even though the bank should go to
rhe wall. The people Of the state
ItWho have thought at all about this
matter are convinced of its import
ance. but to enact such legislation
will probably require a campaign OF
euucatlon and a fight to accomplish
the desired ends.
At the last regular session Of the
legislature a bank guarantee law.
based on the identical lines of the
Kansas law on the subject, was in
troduced It was referred to a com
, mittee of banks and banking. The
speaker of the house is the .president
OF a bank in Shreveport. The chair.
man of the committee was the pres.
ident of. bank insNeW Roads. i
required some exercise OF energy te
even get the commiIsee to take VI
!. the mattel. and ~ Ii was 1us1
abont as had as talklng 10 q lot %
dead, ducks. OF course, the com
mlttee reported the bill unfavorably
and during the absence of its in
troducer the speaker received the
report and the bill was Indefinitely
postponed without an opportunity o1
: discussing its merits. Two members
: of the committee to whom the Dill
was referred voted for a favorable
report, Mr.. Johnston Of Caddo and
/. Mr.. Ferguson, a banker, of Claiborne
!, Mr.. Ferguson stated that he had
been elected to the legislature tc
!, represent the people Of his parish
not to represent his bank, and he
J.. therefore voted for a favorable re
/. port il3asmuch as over nine out o1
, ten men in his parish wanted a bank
: the adjournment of the legislature
the adjournment of the legislature
. the bank at New Roads, whose pres
!, ident was chairman of the commit
!, tee on banks and banking, closed it:
J, DOORS This was about one yea
ago. And since April of last yea
i, the following banks in Louisiana hav9
J. been closed and are being Iquidatet
!, by the state banking department:
!, Teutonia Bank and Trust Com
pany. New Orleans, April Is, 1912.
r, Commercial Bank, Bogalusa, Ma.
!. 90, 1913.
|. Mount Herrnon Bank, Mount Her
J. mon, May %, 1918,
Bank of Angie, Angie, May 20, 1915
:, Feliciana Bank and Trust Com
J. pany, st. FrancisVille, Aug. 28, 1913.
I. Union Bank, Franklinton, septen
J. Der 20, 1913
DdAh E1SlA0ASA5IALyiilCs ASSfNAAcS
r, %, 1918.
Thus it is seen that eight bank
l. have closed in eighteen months, tha
:, is from April Is, 1912, when th
[. crash of the Teutonia seriously a
). fected and distressed it's depositor'
to the closing of the Bank Of Donalt
sonville. No person can calculate u
:. erringly on the character or th
!. causes Of losses, but depositors ca
e be and should be protected again.
r, losses in this state as well as the
:. are in Texas, in Oklahoma, in Kal
\. sas, in Nebraska, and others.
Bank officials may be ever SO ho
G. est and scrupulous in their dealir
=. with others, but their institution
e might be caught In disastrous loss
r, not Of their own making. How NAL
L. banks were caught by Smith Brc
J. --------
]. Continued on page four