The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1917-09-11
$41.,674T0F FORM
BANK IN SURANCE
FOR D(P'|O)S|TORS
one-T Twentieth of One Per. Cent
Of $50, s4e,o 600 Becomes Avail
able January
FUND OF $50, 4s0 WILL
ULTIMATELY BE ACQUIRED
State Examiner J. r. Waters Con-
siders New Act Cheap Form
Of Mutual Protection

~ tt&.JE :.tSi, f.-fttsl,.
North Dakota's4 first guaranty de-
post fund, which is expected, 10 be.
come available Jan. l, will total $41,.
G74.5O, according to an estimate made
by State Examiner j. r. Waters to-
day. That amount, it is believed, will
be sufficient to meet any demand
which will be made on the fund for
the reimbursement of deposit0rs in
any one year. II it should prove in
sufficient, the state guaranty board
has authority, under an act passed
by the last legislature, to call up to
$S33.490. .'4
The guaranty fund is based upon
the average daily deposits Of the $50
banks and four trust companies which
are the beneiciaries. Such average
daily deposits, reports in the ONCE of
the state examiner show, are $S3,349,-
OO0 The law authorizes the state
board to levy for the guaranty fund
one twentieth OF one per cent Of these
deposits, which is equivalent to SAL
GS4, the amount which the board will
have at it's disposal July /.
Remains on Deposit.
This guaranty fund is not removed
from the state banks which set It
aside, until there is a demand for
funds with which to reimburse depOsi.
tors who have lost through the failure
of some state bank OF. for some other
reason which the act covers. Then
only such percentage is called as may
be actually needed Each year a sum
equivalent to one-twentieth Of one per
cent is added until the fund amounts
TO one per cent Of the average daily
deposits. At the end of 20 years this
fund may be expected to have swelled
to not less than million dollars.
When the fund shall have become
equivalent TO one per cent of the aver,
age daily deposits no further slevies
are to be made upon the state banks
until the fund. through the payment of
lesses, falls below shat standard
Likes the Act. i
"The more familiar become with
this guaranty act, the better l like it,"
~oid State Examiner Waters today.
'It seems to absolutely safeguard the
interests of the depositOrs, and at the
same time it places no burden to
speak of on the banks. They continue
to have the use of their money; it is
not removed from circulation, but
merely set aside as reserve on the
books of the institution. subject to
draft from the guaranty board. We
have had a very satisfactory expert
ence in this state so far as state banks
are concerned. There have been no
disastrous failures, and il we may
base our Judgment on the past 1t will
be safe to say that no heavy calls
need be anticipated on this fund. The
fund is there. however, if it should be
needed, and it constitutes. an absolute
guaranty to depositors. y
"The state guaranty law is nothing
more than an economical form of mu- ,
tual insurance. State banks now prob
ably pay an average Of at least $50
yearly for surety bonds. They cannot
become repositories for public funds
of any description unless provided
witt, such sureties Under the state
act the average assessment
will be little greater; the money is
not removed from the bank until it is
needed, and at the end of 20 years
the fund should have attained such
proportions that further levies will be,
for years to come" [
Effective January I. I
Reports from all of the state banks I
and trust companies have reached the
state examiners Office, and definite
groundwork now is being laid for the !
placing of the act in operation Jan. l. !
Every bank in the state has signified
it's intention to comply with. the pro-
visions of thesnct; and the sitght ou-
position encountered at first is said to
have died away. - - /