Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1914-07-08
President of State Bankers
Admits He Opposes Prin-
ciple of Plan.
PROPOSED MEASURE
NOT WHAT is WANTED
Saws States That Have Tried Plan
Have Not Found 1t Aid to Banks and
PeOple-ThOusand OF. Illegal
Names on Initiative Petition.

Little Rock, July 6.-Representative
men from the different walks of life
arc addressing the Sunday afternoon
meetings of the Little Rock Social
lists. This is to enable them to get
the viewpoint of others upon ques-
tons vitality affecting the public well
fare.
Yesterday afternoon George w.
Rogers, cashier of the bank of Com
merce, addressed the local on the
question Of the bank guaranty act,
which has been initiated, and which
will be submitted to the people at
tho September election. The attend
ance, not only of Socialists, but OF
business and professional mel, was
quite large, and the speaker was CIV
eli a most cordial hearing.
Mr.. Rogers said that the bankers
arc opposed to the bank guaranty act
because 1t penalties the good banks
in support of the poorly, mlsmanag-
ed banks. He said that it would be
the same principal as to require the
mechanics union to pay for the poor
workmanship of the individual work
man. The bank that is honestly and
wisely conducted should not be re-
ouired to pay for the shortcomings
Of the bank that is badly managed.
The speaker praised the present
state banking act as law that Is
providing honest and just regulations
for the banking institutions of the
state, and declared that most of the
directors to it are already Out OF the
business, or are going out.
He said that Hon. R. S. Warnock,
of Magnolia, author Of the proposed
guaranty act, had invited him to
Joint discussion of the measure, but
he declined to meet him.
Il concede that you believe in the
theory and principle of the guaran-
tee of bank deposits" Mr.. Rogers
said, in beginning his remarks, land
concede that you are honest In your
stvt,.-r
ION my part am opposed on prin-
tiple to the theory of guarantee OF
bank. deposits. l do not believe II
economically sound or just; AID |
assume that you believe that | am
thoroughly honest in my convictions,
as / assume that you are thorouhgly
honest in yours.
\ several things are proper to DIS
cuss in considering the matter OF
bank guarantees, or the guarantee OF
bank deposits-that is-how has 1t
worked in other states?
Five States Tried Act.
Give states have already tried the
guarantee OF bank deposits.
New York state in 1929 passed van
act which was, at the time, supposed
only to guarantee note holders of IS
sujng banks against loss. But the
courts of the state later held that 1t
guaranteed depositors and all other
creditors of the bank as we'll.
"The state banks operated under
this law for number of years; and
it later proved a disastrous failure.
1.-THE following states are now OPP
Grating under the bank guaranty
act:' Nebraska, Kansas, Texas and
Oklahoma; and / desire briefly to
call your attention to the condition
oe the banks in the states when the
guaranty law went into effect:
"In Nebraska the banks were Old
vell-established institutions, in a
well-settled country. They had been
under the supervision of an efficient
banking department for years. They
operated under conservative bank
inc law and the banks were in excel
lent condition. 1t had been many
years prior to the passage of this
bank guaranty act since there haa
sf,een a failure of bank in the state.
ssIn Kansas it was much the same.
"In Texas state banks had beel
authorized for only a few years. Prior
to that time all banks operating III
Texas were either private banks or
national banks. When the state
banks were authorized to incorporate
they did so under conservative
banking act, and under the supervi-
sion of a most efficient banking de-
partment.
Oklahoma Banks.
"In Oklahoma banks had Operated
urder much the same condition as III
Arkansas, with practically no super
vision or restraint. Their banking
department was largely political, and
ali banks went under the guaranty at
practically the same time. The re-
suit has been most disastrous iall-
ure, and the bank guaranty has lost
more than two millions in this state.
Eat this time l think it proper TO
Z call your attention to the fact that
no state guaranty law can affect ma
.ional banks; and the guaranty. I'M
der state law, refers Only to banks
incorporated under the state laws.
1T is proper to discuss the amount
OF reserve required under the various
banking acts in the state where guar
anty of deposits is effective:
"in Nebraska. in towns of less
than $4,000 population, Is per cent
reserve is required. In cities over
$4,000 poulation, 20 per cent reserve
Is required.
"In Oklahoma, in towns of less
tran $500 population. 20 per cent re-
serve is required In cities siver 3
500 population, % per cent reserve Is