The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1914-02-12
KYLE BANKING BILL
CONTINUED from Page One.)


such banks to be privileged to guar
antee its deposits.
BY Mr.. Notwithstanding savings
banks from the provisions requiring
that no bank can receive continuously
for six months deposits in excess of
ten times the paid up capital stock
and surplus of the institution.
BY Mr.. Brame-To allow any man
who has been business manager of any
enterprise which has failed, but liqui-
dated its debts at par, to become eligi-
BILE for a bank examiner.
The feature of the afternoon ses-
sion of the house was the statement
of Mr.. Smith, when he offered an
amendment to strike out section 65,
that the section had not been adopted
in the senate. He could not explain
how the provision came to be in the
bill, but it was there. After a number
of the members had considered the
section they thought it best to allow
it to remain, and by decided majority
the amendment of Mr.. Smith was tabl-
ed. The section referred to affects
banks in only the cities. 1t prohibits
banking institutions from agreeing
along themselves what exchange
rates shall prevail, leaving the de-
termination of this matter to each in
stitution. The section also provides
that every clearing house association
must be incorporated, and forbids
banks so associated to agree upon ex-
change rates.
Before the motion to table was put
Speaker Quin ruled that the question
as to whether the senate had actually
voted on the section was not one for
the house to consider, that the bill
came from the upper body with the
section engrossed in it, and it there
fore was part of the measure as
adopted by the senate.
Franklin Amendment Defeated.
| The house refused to adopt an
amendment offered by Mr.. Franklin
to amend one section by adding para
graph that would require all candidates
for bank examiners to file with the
secretary of state sworn statements
of their campaign expenses, with lists
of names of those who contributed to
their campaign funds. He said he be-
lieved this to be the only method
whereby it could be ascertained wheth-
er any bank contributed to the cam
paign expenses of candidate The
Franklin amendment, however. was
not received with favor, upon the plea
of house leaders that too many amend.
ments would so cucumber the bill that
1t might get chung up" and this they
were anxious to avoid. A motion to
table the amendment offered by Mr..
Franklin prevailed.
In speaking of perhaps the most i'm.
portant amendment of the house, that
relating to deposits under the guar
anty clause. Mr.. Smith today said;
This is a safeguard around the
guaranty system 1t prevents the bank
from obtaining money on the credit of
the guaranty fund In order to tide over
an embarrassing financial situation.
No bank deposit Under this system
that draws more than per cent inter-
est will be protected, An insolvent
bank in need of, say $4,000, without
this provision might be able to induce
some depositor to deposit a large sum
in the bank to draw interest at high
er rate. say per cent upon the as.
surance that the depositor would be
protected in case of failure by the
guaranty fund. whereas If the bank
was forced to borrow this money upon
its own resources, being insolvent, 1t
would be unable to secure the loan"
One of the most vital points in the
guarantee system Is that the bank ex-
aminers are the ones who fix the rate
Of interest that the banks in different