The Donaldsonville chief. [volume] (Donaldsonville, La.) 1871-current, 1914-07-04

cent years, finds its expression in
the statistical data relating to the
development of the state banks in
Texas. It's characteristic signs are
not only the large increase in the
number of banks, but also in the
growth Of their funds deposits. saw
lngs, trust money. etc.) intrusted to
the state banks. In considering this
remarkable development Of our state
banking system it will be interesting
to observe that this progress is close
ly connected with the enactment of
the bank guaranty law, providing for
the guarantee of certain depositors
against a loss. A pure Democratic.
act, there is no doubt that the
sound, fundamental principles of this
system convinced the people; hence
the change Of many private banks,
and even national banks, into state
banks. The very able manner and
method of supervision pursued by my
predecessors has given impetus and
stability to the system
It appears that during the period
from Sept. /, 1912, to Aug. 81, 1913,
the total amount of the guaranty
A1A@A
It is further worth mentioning that
the proportion Of the annual pay
ments to the fund have materially in
creased with each year. Part of
this growth is formed by the pay
ments from newly organized banks.
The greater part, however, results
from the payment of regular, legal
assessments, which each and every
year, according to the law, become
due at the end of the guaranty fund
year Oct. 81. The law provides,
further, that the annual assessments
based upon the submitted amounts
OF average daily deposits must be
contributed so long as the total fund
does not exceed two million dollars.
IN this respect the assessments show
large and continued growth, as the
number of banks whose 3 per cent
nave been adjusted increases year
by year. The number of banks do
not show such proportionate increase.
In analyzing the figures one has to
bear in mind the fact that some
banks We're liquidated and new ones
added, the increase always larger
Tran the dlmunitions
| might also state that the total
cost to the contributing banks in this
state since the adoption of the guar
anty fund plan has been approx
naately $4,000, and no unsecured de-
positor has ever lost a cent in a |
state bank in Texas. It is true we
have had several failures and sus-
pensions, but in no instance has
there been any excitement or un-
easlness manifested in the localities
where such failures or suspensions
occurred by the depositors of the fail
ed Lanks. They have all felt that
they were protected and hence the
result OF the failure or suspension
was minimized, and other banks op-
Grating in the immediate vicinity
were not In the least embarrassed.
This, to my mind, is great argu-
ment in favor Of the guaranty of
bank deposits.
At this time we have 820 banks
operating under the guaranty fund
law, with total resources of $50. .0OO,-
600 in round numbers. As whole
they are prosperous and condition
satisfactory.
desire to say in passing, however,
that the success of the guaranty law
in this state has been brought about
BY a system of frequent and rigid
examinations and supervision.
| am taking the liberty of sending
you under separate cover a copy of
the law, digest of 1913, and if I can
be of any further service to you in |
this matter, please command me.
Yours very truly,
w. w. COLLIER,
Commissioner.
Governors Office,
Austin, Texas, May 25, 1911
Hon. A. F. Barrow, Chairman, Baton |
Rouge, La:
Dear Sir:-Your letter of May 20 is
received I am sending same to Hon I
w. w. Collier, Commissioner of In
surance and Banking, with the re-
quest that he write you fully con-
corning our state banking system and
the guarantee law. He can give you /
more detailed information as to the /
workings Of same.
The success of the guarantee plan,
however, depends largely upon strict |
of the banking laws !
When | became governor appointed
Hon. B. L. Gill, an experienced bank
er of ability, as commissioner of in /
surance and banking, with the under
standing that he was to strictly en-I
force the state banking laws, which I
he did admirably. He resigned to
take the vice presidency of the Sea-
board National Bank of New York at
greatly increased compensation. I
appointed Hon. w. W. Collier, of |
San Antonio. to succeed him, and
have consistently supported his eff |
forts to enforce the state banking /
laws, with the result that the state !,
banks of Texas during my admins
tration have been about as clean
and well looked after as the national T
banks. / think much depends on the
vigorous enforcement of the law
Yours truly,
o. B. COLQUITT,
Governor.
Oklahoma City, Okla, May 26, 1914 T
Senator A. F. Barrow, Baton Rouge,
La:
Dear Sir:-As per your request Of
the 22nd instant, addressed to Hon I
Lee Cruce, governor, which has been
forwarded to this office for attention.
I desire to advise you that the first
few years Of the operation Of our
guaranty law proved very expensive
to our state banks, but since that
time our law has been amended to
s9far an ayfnTf and nnnf5ifions have +