Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1914-07-14
So Declares f. o. Warnock,
Framer of Bill, in Little
Rock Speech.
ANSWER TO BANKERS
Mr.. Warnock Replies to George w.
Rogers of Bankers Association,
Quoting Texas and Oklahoma Or
ficiaIs in Support Of Principle.


mock, who framed the proposed bank
guaranty law, yesterday answered
the attacks made on the principle
and the bill by George w. Rogers,
president of the Arkansas Bankers
association, during an address here
on Sunday, July 3. Like Mr.. Rogers,
Mr.. Warnock spoke under the aus
pices of the Arkansas Federation OF
Labor, which is having the proposed
measures discussed at meetings
every Sunday afternoon in the Moose
hall here.
Mr.. Warnock explained how the
proposed law would benefit deposit
tors, and produced evidence from
states where such laws are in opera
ton to substantiate his argument and
refute statements made by Mr..
Rogers. |
"Mr. Rogers told you last Sunday, y,
said Mr.. Warnock, that the law was
unsound, and referred many times to
different states, where, he said, the
law had done for his state. In part
states mentioned was Oklahoma. In
his speech he told you that the law
Hdu DSSI uloootiouS l"iAoAN " oAAN
that the bank guaranty had lost more
than two millions in that state.
Conditions in Oklahoma.
"Undoubtedly Mr.. Rogers meant
well in his heart, but was not aware
of actual conditions, for letter to|
me from j. d. Landlord, bank COM
missioner of Oklahoma, says it would
take voluminous letter tell of all
the good things which the bank guar
anty law had done for his state. ln|
part the letter reads: 1T has avert
! ed several panics, has prevented
runs on banks in the time of a bank
failure, has absolutely protected every
deposit which was not otherwise
secured in failed state banks. When
ever a state bank of this state has
been taken charge of by this de-
partment, all deposits in such bank
protected by the depositors' guaran
tee fund, have been paid in full in
cash as soon as their accounts were
recohciled, and the liability to the
| fund ascertained in connection there
with. We feel that the citizens of
our state have derived more actual
benefit from the depositors guaranty
law than from any other law On our
statute books
4 Surely this letter is not in accord
ance with Mr. Rogers statement
Honesty Not Everything.
"You have been told also that the
j proposed law would not guarantee
section two of the bill plainly states
that any incorporated state bank,
trust company OR savings bank snail
come under the provisions of the
law.
Honesty is mighty good trait,
and one to be emulated, but not in
the manner that your previous speak
er meant. ! do not believe that the
mere reputation for honesty and in
tegrity of the officers of a bank
should be sufficient guarantee of it's
FUNDS. On such principle, they
would not thrive for long Do you
suppose if farmer were to enter a
bank and ask to borrow money simp-
ly because he was honest, and had
no other security, he would be con-
sldered? Not at all. The bank would
ask more security than the mere fact
that he was an honest man.
why, even the bankers have no
confidence in eacch other, and yet
, they would have you be confident of
! their honesty If a Little Rock bank
, were to borrow money from one in
st. Louis do You suppose for mo-
ment that the ST. Luis bank wuld
i lend the money because the bank Of
| tlcers were honest men? Indeed not.
, That bank would require 25 per cent
more security than the amount Dor
rowed. If the bankers have not con-
fdence in eacch other how cana they
expect the people to have confidence
A in them?
+ Evidence in Rebuttal.
n 'Nlr. Rogers has told you that when
the state OF New York tried the guar
S antee law it was failure, but that
: failure was due to decision handed
h down by a court, which said that from
f the guarantee deposit fund all debts
of every kind, should be paid Until
o that decision the law had been entire
p ly successful.
"A letter from j. n polley, Kansas
@ bank commissioner. also lauds tn,
O law, Mr.. Dolley says, 1.-The guarant
law went into effect July l, 1909.
has worked out splendidly. The bank
ers are very much pleased with it, a
# we'll as is the depositing public an,
: cur deposits in. state banks have in
creased $14,0O0,000 since the lay
9 went into effect. Some of the bank
q who were opposed to the law at frs
Il are now in favor of it, for it is a
: good law for the banks as it is TO
r. the people, and has done more to es
n taablish confidence with the peopl
~ than any other thing has DONE
II 81 also quote a letter from B.
N Gill, bank commissioner of Texas, VIII
If says: 4 desire to say that the stat
banking law was passed in 1905, an
the guaranty fund law became effect
>, i've in August, 1909. At the time TeXa
: had 2SS banks and 81 trust comps
MES in operation, with total deposit
L of about $1S,0oo,Q90. At the call {