Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1917-02-20
GOVERNOR TELLS
HOUSE BANKS OF
STATE ARE SOUND
Chief Executive in Special Mes
sage Explains Why Examin-
ers Have Been Placed in
Eight Money Institutions.
MUST CONFORM TO LAW
Policy Followed With Success,
He Asserts, and Two Already
Cleaned Up.
VERY SMALL Properties 4
MUST CONFORM TO LAW
VERY SMALL PROPORTJn$
(Fron a Staff Correspo

.
Lincoln, Neb., Feb. f3ecia
Telegram. because OF ysatement.
made on the floor of the house rela
tive to the condition of the state guar
anty fund Governor Neville today SEM
communication to that body denying
that there was no more danger now
than when the law was passed. He
deplored the. fact that information OF
a confidential character had been dis
torted on the floor of the house and
desired the members to understand
that. if present conditions continue
there is no danger that the doors OF
any bank will be closed
Assertions made by Representative
Murty of Cass county on the floor OF
the house that the governor had said
there were eight or ten banks now on
the verge of suspension caused the
controversy. 1t came up during a de-
bate when the member from Cass
was attempting to'have some of the
provisions Of a bill he had introduced
and which had been defeated EN-
bodied in another banking bill then
under consideration.
Condition of State Banks
The governors communication was
as follows:
Gentlemen: Inasmuch as informa-
ton of confidential nature pertain
ing to the banking department has
been considerably distorted and mis-
used in debate on the floor of the
house, and has also appeared in the
press of the state, | deem it advisable
for the purpose of correcting any
misapprehension that may have been
created as result to acquaint your
honorable body with the true condi-
ton of the state banks.
six weeks ago there, were eight
banks Cess than | per cent Of the
total number in the state). operating
with more or less disregard for the
provisions of the banking laws, the
recommendations of the examiners
and the orders of the secretary of the
banking board
Examiners Installed.
''The board has adopted the policy
of, placing examiners in charge OF
such institutions for such period Of
time as may be necessary to cause
them TO conform to the laws of the
state and TO the requirements of sound
banking. This policy has proven very
successful and two banks have already
been thoroughly cleaned up, and in one
instance change of management ef-
fected, without the necessity of clos
ing their doors.
THE department. under normal con-
ditions, Is in need OF an additional ex-
aminer and the Inauguration of the
policy above mentioned has had the
effect of greatly retarding the routine
work Of examination by the depart
ment.
Extra Man Needed.
The committee on finance, ways
and means has made provision for an
extra examiner, and as a result, the
board expects to be able ts- place and
maintain every institution in good con-
dition. There is reason to hope, il
present conditions continue, that this
can be accomplished without closing
the doors of single bank.
"The guaranty fund is in no greater
danger now than it has been since the
of the guaranty system,
and unless the number of banks be in
creased beyond reasonable limit, 'or
some unforeseen condition of financial
stringency arises, no great demand
will be made upon it.
Should | at any time desire to pre-
sent to you, as a body, information
pertaining to the various departments
that would in my Judgment facilitate
he discharge of your official duties, it
will be presented by special message,
As provided by the state constitution"