Oxford eagle., 1914-02-05
WEEKLY LETTER FROM SENATOR
RUSSELL.
EDITOR EAGLE:

twenty committees
n each house-and from there
hey are returned back into each
house for passage or rejection.
Therefore il takes n long time to
,arefully consider 8ll bills-there
are several hundred Of them each
session and some OF them very
and many contain diff
cult legal propositions to be work.
ed out. II is also very difficult
to get all the committees TO work
Systematically Necessarily one
man has to belong to several
committees, and most of the COM
mittee work is done about the
same hours--in the afternoons (;
hence 1t is hard to get enough to-
gether TO do good work. In many
instances it is almost impossible
to get some committees together
for several days. And, after one
house haa finished this work il
has to go through the same rou.
tine in the other house.
The Senate finished the Kyle
Banking Bill last week; that is
it passed it and sent it over fol
the consideration of the house
Many amendments will be ma1t
there likely. and so it will have
to come back and these amend
menls again gone over and adopt
cd or rejected by the senate. ST
it is lang ways off from fin
ished state. However, it look:
like n good banking bill will be 9
certainty within the next few
days. This bill alone took VI
over five days of the senate's
time; the house will take almost
as long. So you see with hun
dreds of bills to consider what q
Job VIC have. Possibly you
would like TO know just what the
Kyle Banking bill means. | will
explain the main points: First,
il provides for a system of in
spection of all state banks by
three examiners. These eXami-
ners must visit and carefully in
spect and report upon each bank
at least tHice each year. Ii they
are not run in a business like
way, il everything they do is not
in strict conformity with good
banking principles, then such a
bank must rearrange is system
entirely or 20 ont Of business a;
once. These examiners have full
and complete power Of inspecting
ali loans, every security for same
may summon witnesses etc.
Second. this bill provides that
there shall be guai antee by
each bank Of all monies placed
In It's hands by it, depositors; il
other words they must Cuarante,
to each depositor that he will &c
his money, and by this il mean
that each bank puts aside a Ger
tain part of its funds so that whe
any bank breaks, this fund pay
every depositor. The banks d
not like this for the reason tina
the strong banks say they mus
guarantee all other banks in thl
state-the strong banks guaran
Z teeing the weak banks etc. fo
see, bank that Is solvent, has
record Of doing u sound bankin
business, does not care u put u
a fund to be used by the fir
bank that fails; il meant thu
each bank in the state is as sour
"a the other, under this LAY
However. Il large majority OF Il
, Legislature seem TO think that
4, guarantee will bring out mul
=, money not now deposited, a
the small amount that each ba
G must set aside as a fund to pr
6 tect all depositors will be me
e than repaid by the use OF Il
10 additional lot of money VIII
they are sure to get. Then ag'
III even a strong bank can say to
" depositors that it not only has
d., own resources behind it but ev'
- other bank in the state
only this but alter the examin
have Weeded out the banks I
De are careless and unsouud, tn
l. will be very few banks to bre
w possibly none at all There
- no use for bank to break
properly conducted, unless sc
- great public calamity sho
er happen. The great trouble v
ms banks, as with all business,
.er that it takes risks thar il ou
.. not to take bad securities. Til
:. examiners will give every ba
- er that wants 70 aid a frien,
Ok good excuse TO turn him do
toi unless he has gilt edge secur
ne When a bank knows that at
M, spector i likely to drop in
~ minute and put it out II BUSH
i'S if each loan Is not amply secu
ar that means this bank will be '
Ike careful. Now, this law, a
he passed the senate, allows
=, banks one year 10 get ready I
under this new system; afte
'"s time they are forced under il
nee else they have the right,
his course, 10 escape this by e
r il under the national banking
GO and thus becoming what is ku
as a national bank and ther,
e's' subject to rigid inspection.
and main difference between the
.old OF business that a national
- may transact, and the ordi
bank is-that a national
cannot lend money on real -
They usually evade this.
said, by letting others take
aeN security and letting these p;
~" so secured, secure the 4
'ue Several states have the .sua
at tee deposit law and trey lih
Il -