Indiana daily times. [volume] (Indianapolis [Ind.]) 1914-1922, 1921-07-26
NEBRASKA WILL
FIGHT AGAINST
VAWP BANKERS
Financial WreckerS Leave
Guarantee Fund to Make
Good to DepOsitOrS.

OMAHA. Neb., July 26ZNetraska
bankers are going to start drive against
vampire" bankers who, In the last few
months, have wrecked a number Of Ne
braska banks and have caused the Ne
braska bank guarantee fund to be called
upon to pay about $1,000, 600 TO depositors
In the failed banks. The good bankers
are getting tired OF putting up money
for the vampire" bankers 20 carry on
speculations and gambling At the an
nual State convention of the bankers held
last week IN Omaha, bankers were called
upon 10 go after" bankers Of the specu-
Ia tive class
A number OF years ago. following the
collapse OF a number Of Nebraska banks,
the State inaugurated a bank guarantee
fund for the benefit of depositors of
failed banks. This fund was made by
assessing all banks IN the State pro rata
according to deposits in the individual
banks There was not a bank failure for
a number OF years and the guarantee fund
grew into a large figure.
SEVERAL BANKS
HAVE FAILED
But lately a number of Nebraska banks
have gone TO the wall. Different reasonG
for the failures have been given--but the
State guarantee fund has been called
upon 10 pay dtUQsALOIh OK many VI LutSc
failed institutions. About $1,000 900 has
already been paid out In this manner.
And still the breaking of banks is go
ing on.
Lets put on n drive to clean out
the financial vampires that infest
Nebraska" urged 7. L. Mathews OF
Fremont. speaking to the bankers con-
vention recently. It's time 10 stop this
sympathy stuff that is so generously ex-
pressed for the managers OF wrecked
banks on the plea that they were over
come by an unselfish desire to help their
customers.
That's all bunk"
al undertake to say that every bank
that failed In Nebraska last year failed
because the manager departed from good
banking practices.
THE guarantee fund is not a pork
barrel, nor charity fund, but a trust
fund for bona fide subscribers"
The day after the close of the State
convention the bank guarantee fund was
called upon to put up S7OO000 for the A.
Castetter bank Of Blair, Neb., which went
to the wall last fall. Notice was given
that the assets of the broken bank would
probably take care Of the extra 100000
for which the guarantee fund was not
called.
ONE OF STRONGEST
IN STATE GOES.
The Castetter bank. named after
Its founder. was thought to he one OF
the strongest banks in the State But
one day the manager Of the institution
walked out Of the brilding and dis
appeared. He wrote n note to his wife
saying he was going away
The State took charge Of the institution
and the State guarantee fund last week
was called upon g. pay out S7OO,o0O of
good, hard moneS contributed by other
Nebraska banks.
Two weeks or so ago the Pioneer State
Bank Of Omaha went to pieces The bank
guaranee fund has been called upon for
about $35O,000 A portion of this will be
recovered.
There was a bank at Decatur. Neb.. of
which a painter and paper hanger Sc
cured control. The bank had not paid in
terest on the stock for a number Of years.
Within two or three months after the new
manager received control It had paid 100
per cent dividend. Afterwards it
busted The State guarantee fund was
called upon to make good-at the expense
OF the other banks.
Sometimes banker gets sent to prison
for violating the banking laws. But that
Is the unusual. not the usual And that
does not help out the State bank guarau-
tee fund.
In the last few months seven banks
bearing the name Of Farmers State
Bank" have gone to the wall They were
located In Allen. Belvidere. Dix Hadar
Hoskins. Page and Pleaston. In practi-
cally each case the good" banks were
forced to pay out good money through
the State guarantee funds.