Omaha daily bee., 1916-04-02
Nebraska
MUCH CARE NEEDED
HANDLING BANKS
\Secretary Royss Of Banking Board
Says Danger u TmperiIing
Guaranty Fund.
SHOULD RESTRICT EEw Banks

fFr0m a BtaH Ceffaap0hdenfJ
LINCOLN, hpfi 1,s-tsgseiai fiis
banks ~ the state afs well managed,
generally speaking, ana ~ n safe AMI
solvent condition, according ~ seefetsfg
HO1ss " the State isaHkiBK boafd. n d
statement issued NJ connection with llls
ebpHm report wbieh has tBst gone %
Dfess Speaking further III nv matter
mo report n tho secretary u ~ foi
iowss
"Ths bank deposit guarantee Inv, -
for, has pfOVen n success am uitlhat
question hHs strengthened me confluence
N ne people NJ ne ranks BhdAf your
supervision ii1Wevef, there u ~ sis
ment n danger under pfessbt conditions
10 which Il IA veil ~ call goF attfh
tl6r NJ ihis time, There IA no question
DUt tine iha guaranty fuh1 accumulated
n icing ifaDefilGd ~ tfs multiplication
~ hanks ara ~ 6Yaf supply ~ bahk
ea8tal IN ne state, u Il nj ~ much
ths GENERALIZATION, 8s nat n not =
reai menace, but DO 6t6fcapitellzaitDti
by ire multiplication ~ babhs certainty
fOffOdee disaster s06fsef On i8tSE ~
prevent this more DgWsf sfietin BE- eiEfn
yoar honorable b0dI ~ legislative ~ -
dldai aegl1n. a1yifR v6H sGfieisbt ans
tii0rtH ~ protect communities aifea4t
pr0vided with rife and solvent babbs
akaiHst ne Intrusion N spseblat0fs ah1
promoters n babking pfigils9es
FgBd is Danger,
n cannot faDhasize TOO str0Bgf fbs
dangers ~ tah KaafahfH fHnG arising
frofB these eadf6s, especially under TIE
conditions ~ 6asg mGfAg nv pfsfaNiYk.
n IL ~ be boDsG tilf He2f LEGISLATURE #ill
amend me banking laW ~ ~ 10 pfo1ias
m0fo efficient Dfotse ign against thsss
6VEes
~This department fsaiizss that n o
time N noBeY DlstH0fa, Ike me pffffnl5
br6sda hbHe6s mas viii BE- fDll0Wse W
penalties later On whsh CONDITIONS ehahee'
gfh6 accumulation ~ dsD0si0 n ~
banks HHgef g6tf supervision ~ sFldAhtf
N me foufiGeBes tte ps0Dis baVs ~ ~
state banking system, afd sVefg elttzsn
N tho state n entitled 70 hags . pardon
sbis pfiAe IN ne stisH1l1 sa0piBg made
zone feature inst I desire ~ sai -
y06r attention a D. ~ ineonsldffsbf
quantity N fH0Bsy inst II DsiDg 1sDeHlsh0
HI am ioaBeg N 0af state D8bks ~ Err
nfie6tls ~ 1eposit w oitY banks III eh9
outside The state On 6ee1BBt ~ me gaaf
sbtH fund accumulated
what Wight Happen,
"fai1tdd he guaranty fund bse0ms I'M
Dsris1, ~ conditions change, this niohay
v0Bid ~ withdrawn ~ q time when ne
bsnks holding n may ~ iliV prepared ~
Dsy n, THIS department feels tbat u "
necessary ~ osii your attention ~ mis-
element ~ danger, Tie unfortunate f9ll'
urs n the Oklahoma guaranty iaH.
which HaA partly due ~ Tie Df01sies ~
Advertising for sn1 solielbng funds out
side me sfats, siOui1 be q waning ~
the hanks N Nebraska
IN ne msin the banking sct ~ ne
stats IL being very well 0bsergs1 bg he
hanks under y0ur supervision, r. natH'
sliy foii9ws that IN ne Iafgs BpHIter n
banks nou operating un1sr ne stats
Ian, there should b. here am there in
stances ~ reckless eBG Incompetent fdaB-
agemsnt Egefy effort II beibR made ~
iris department W avid disastrous eoHs
sequences III such esses, sn1 10 faF Ne
are entitled 70 congratulate ourselves
that supervision has Ten sufficient ~
protect The guaranty fund ana 1fp9sitprs
~ vii NJ ~ hiss.
White II " generally e0Dceds1 ti}at Ne
fecord ~ Ssbtaska's bsHk supervision
u ssloH1 ~ none, n vii require constant
esfe, rRi1 eODtfoi, 8ba eef8stimas ariHs
nary action On the p0ft n mo sBpergis-
ING authority m ke6p The reputation n
tho banks N no state 10 ~ ne present
STANDARD"