Dewey County advocate. [volume] (Timber Lake, S.D.) 1910-1913, 1913-03-14
BYRNE IN MESSAGE
GOVERNOR IN SPECIAL MESSAGE
URGES ENACTMENT OF BANK
GUARANTY ACT.
OTHER ITEMS OF INTEREST
From the Capitol City, the various
State Institutions and From
Many Different Parts OF
the Sunshine State.

AucSSdSc " lie lcSIctdIuAo ., ooNAAo 49,
the enactment of bank guaranty law
of some class at the present session,
calls attention to his message at the
opening of the session, in which ne
says: II recommend and urge the
enactment of a we'll considered, care
fully prepared bank deposit guaranty
law, by which depositors may be safe
beyond peradventure in depositing
their money in banks chartered by
the state"
He then calls attention to the fact
that as a member of the state finance
board he finds banks over the state
putting up the bond required by the
state before deposits will be made,
the statement being: THE state in
sists on and gets ample and full secur-
ity for every cent it deposits in any
bank, and practically all banks of the
state are earnestly calling for depos-
its of state funds and make no objec-
ton to furnishing the security there
Tor.
II assert that it is your plain duty
to provide for some measure of secur-
ity for the peoples money deposited
in banks chartered and furnished val
liable franchises by the state, as you
now provide full security for the
states money deposited in the same
banks. 1t is not necessary to limit in
exact terms the form of such security
The banks may be allowed wide lati-
tude in the kind of security furnished.
Only establish the principle that de-
posits shall be secured, and insist up
on the security. l would not even in
sist that the security be equal to the
full amount of the deposits, but in
such amount as will, in all human
probability, cover any loss that will
occur"
People Demand It.
Further he says: "The people of
the state demand that deposits in state
banks be guaranteed; that depositors
be absolutely insured against loss;
that the state provide for the deposits
of the people such security as it ex-
acts for its own money. He who
thinks the people are not in earnest
about this measure is mistaken. 1t is
not a blind and unreasoning demand
The average man has figured it out
carefully. He knows that the banks
by forming an association can guar
antee all deposits at a cost so small
as to be infinitesimal. He knows that
the state wisely demands absolute Sc
curity for it's own deposits, and he
expects this legislature and this ad-
ministration to furnish security for
the peoples deposits.
''In answer to this demand for Sc
curity, to propose to submit to the
people proposal to amend the consti-
tuition SO as to allow the legislature
to provide for tax on the public to
guarantee bank deposits is, in my
OPINION little less than an insult to
the public intelligence. Literally and
absolutely it would be giving a stone
in response to the cry for bread"
He declares his willingness to go
as far as anyone in an effort to in
crease the efficiency of examinations
to quiet the fears Of the bankers that
weak banks will take advantage of
the law and oyer high rates of inter
est to attract money, and suggests a
limit which can be paid on deposits
under the guaranty law, and closes
with: 81 recommend this with all the
earnestness l possess, and venture to
express the hope that you will yet en-
act well considered, carefully pre-
nared hank guaranty act