The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-05-26
A PURELY LEGAL QUESTION

Tho executive committee Of tho state Bank
crs association hna raised purely legal qucs-
ton In insisting that state banks which con-
vcrtcd themselves into national banks after the
guaranty fund had become insolvent shall be
sued In the state courts TO force them 20 bear
thor proportionato share Of the losses caused by
the political Vaccinations which wrecked the
guaranty fund.
This question has been W before in Okla
hono. That there is some legal mer, In tho
contention seems certain. But one In left to
speculate widely ns to where the limo shall be
drawn II the point raised is sustained Would a
state bank converting itself TO tho national
status be required to pay only It's proporlionate
nsscssmcnt required to make the guaranty fund
solvent at the time II was converted, or would
It be held for It's propo-tlonate share of the
losses at the timo OF tho suit?
II tho latter. then those state banks chang
Ing recently would be called on to pay vastly
greater amounts than those which changed sev-
eral months ago; while II tho latter. the state
banks converting saved themselves nothing at
all by tho process.
As a matter Of simple logic. It would appear
that state bank changing to the national sys-
tom should In justice he required TO discharge
all of It's then existing obligations to the state
banking system and nothing more Obligations
against member banks Of tho state system
matcrlallzIng or maturing after tho date OF such
change, should not fan against those banks
which had Withdrawn from the system
In all of this maneuverIng by the state bank
Ing board and the state banks It Is not at all
difficult to detect carefully planned scheme
TO pass the losses Of tho guaranty fund either
on to the people through legislative enactment,
or force the national banks OF the state to bear
a part OF tho loss In both money and prestige.
We think the scheme should not only be caro-
fully watched by the public. but should be de-
fented at all costs. There is nothing more cer-
tain than that the next legislature will be Inn
portuned to enact a law forcing the state to pay
all losses OF tho state banks. thus collecting
from the whole body OF taxpayers the losses
directly attributable to crooked officials and
crooked bankers.
IT, In the meantime. some of the national
banks be forced to ray portion of the
losses. the sum to be collected from the tax
payers will he reduced that much; but In either
or both events the men directly responsible for
the wrecking of the guaranty fund will escape
further losses and be released from all re-
sponsibiliy.
We are fearful that before this guaranty
fiasco IL settled the people OF the state will be
called on to say once for all whether they and
their state are pawns for bankers not. Never
was there a time when eternal vigilance
was 10 necessary the part Of the voter, never
a time when his own interests required such
keen, discriminating attention. The man who
comes now beating the tom toms OF partisan
| nj annealnp n the iudicps of
| men. should not only be looked on with the
! utmost suspicion but should be vigorously OPP
posed on general principles.