Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1914-07-11

dI IIIlOI lioL yOu Illdy "CSli Z
upon request. Very truly yours, Chas.
! M. Sawyer, Bank Commissioner.
Texas Endorsement.
/ Austin, Texas, May q, 1914.-This
| department has received from his ex-
cellency, Governor o. B. Colquitt,
your letter to him under date of the
22d, requesting information with ref
erence to the state bank guaranty
law of this state.
Replying to your request for infor-
nation, l beg to state that this law
was passed and became effective in
this state August 8, 1909. Its opera
| ton so far has been a very decided
success. We have at this time 800
banks operating under the provisions
of this law, and we have total guar
anty fund available at this date of
$973,9S5.S1. This fund will be in
creased from time to time until it
reaches the sum of two million dol
lars, at which figure it will be main
tanned, but no assessments will be
made on contributing banks until the
fund falls short of that amount.
Without reference to the depositors''
guaranty fund, l beg to quote you
from my last annual report made to
the governor, as of August 81, 1918:
1.-THE economic development of the
state of Texas. which has with par
ticular vigor proceeded during recent
years, finds it's expression in the
statistical data relating to the devel-
opment 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, savings, trust money,
etc. intrusted to- the state banks. In
considering this remarkable develop
ment of our state banking system it
will be interesting to observe that
this progress is closely connected with
the enactment of the bank guaranty
| law, providing for the guarantee OF
certain depositors against 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 nation
al banks, into state banks. The very
able manner and method of supervi-
sion pursued by my predecessors has
given impetus and stability to the
, system"
1t appears that during the period
from Sept. 1, 1912, to Aug. 81, 1913.
the total amount of the guaranty fund
increased by s199,5O7.12.
1t is further worth mentioning that
the proportion of the annual payments
to the fund have materially increased
with each year. Part of this growth
is formed by the payments 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 as
sessments based upon the submitted
amounts of average daily deposits
must be contributed so long as the
total fund does not exceed two mil
lion dollars. In this respect the as
sessments show a large and continued
growth, as the number of banks
whose per cent payments at the
time of organization have been ad-
justed 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 were liquid
ated and new ones added, the increase
always larger than the diminutions.
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 approximate
| ly, $55,000, and no unsecured deposit
or has ever lost cent in state
bank in Texas. 1t is true we have had
several failures and suspensions. but
| in no instance has there been any
excitement or uneasiness manifested in
the localities where such failures or
suspensions occurred by the deposit
ors of the failed banks. They have
all felt that they were protected and
hence the result of the failure or sus-
pension was minimized, and other
| tanks operating in. the immediate
vicinity were not in the least embar-
raised. This, to my mind. is a great
argument in favor of the guaranty OF
bank deposits.
At this time we have 500 banks OPP
Grating under the guaranty fund law,
with total resources Of $150.000.O00
in round numbers. AS whole they
are prosperous and condition salts
factory. -,
l 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 ex-
aminations and supervision.
I am taking the liberty of sending
you under separate cover copy OF
the law, digest of 1913, and II l can
be of any further service to you in
this matter, please command me.
Yours very truly. w. w. Collier, Com
missioner.
COlnuitt's Approval.
Austin, Texas. May 25, 1914.-Your
letter of May % is received. l am
sending same to Hon. w. w. Collier,
Commissioner of insurance and bank