White Pine news. [volume] (East Ely, Nev.) 1920-1923, 1922-04-02
STATE GUARAMTYS OF
DEPOSITS IN BANKS
fgy G. r. BogENAS.)

A few years ago there gas quite a
widespread movement throughout the
nation in favor Of having the state
guarantee the deposits Of state banks.
II Was argued thai this form of prsc-
teal Insurance would rot only offer
an absolute safeguard TO deposIfors
zxzfnzt Jos. but would result IN
careful supervision 81 state banking
Institutions y The authorities, and
The cozt 70 The taxpayers would be
practically all. or 81 most very
light On paper il looked fne and
2 number q states fell for the Eea,
notably Oklahoma. Kansas and NJ
arzskz-
II ssTsaa. although ze had eE-
HYie1zed Some distressing failures
= state banks. re concluded 70 SIT
On the sideiinsx 3 While and watch
tne zzrne Defore getting into II II
va vel that Ee id. Within the last
zlx months there have been forty-aye
state hznk Lq1idalions IN OklahclGa
arr twenty failures Of Oklahoma
bSzks- The result Is that the de-
p1zt guaranty fund - bankrupt
When he year 1922 opened the fund
held $4,000. against which there
were claims q oFer xI.g00,s 900. 1T
tie pre<ent writing there are de-
xzzSE - s4.5B9.49g upon the fund
sxS Oklahoma has Issued sz.509.g9v
q ) Kr ce1t certificates. which she
-zzx eventually par. and Is also pre-
-zFzzg : Ind issue 70 meet the obi
gzss0ns = the fund What the tax
zre going % say about this Il
.cE reported. but they ~IIl probably
70 Nze tail thinking, as il goes
wheat saying that the remaining
s-zte hanks esnnot long stand the
OF The assessments upon them
% Efst these continual Losses. and
.zsz The meek taxpayer EiIl Be asked
e18traste
Tns SeE York TINES says The
guaranty fund was sstsb-
xzs1 = 1885 N the next seven
rszrs there we're demands for ST..
1880 under the guaranty. and all
rere ne
Bat ninstysIx national banks.
rhxh had reorgznized as Oklahoma
stzreD bz1kz % ssve their business.
.bzz11Eed their state charters be- t,
CT The assessments upon them !
: period within which 20 +,
BANK depositor n Okla f.
IONA lost a dollar
Il &ebEaskz there have been og-
Of 100000 TO supply
guaranty fund Deficiencies. In Kan
rs premiums Of 3 20 30 per cent
Tere offered for cash deposits against
Of deposit Of banks which
3Sd no resources 20 meet them. From
some tanks every dollar had been
stolen which the guaranty fund had
In 1917 the then United !
States controller Of the currency, Mr..
Williams. reported that a record of
.wenty years showed that failures of
banks were five times as numer-
Gus as Of national banks. and that the
10 national bank depositors
we're in steadily declining fractions
u t~housandths OF ! per zen OF de-
Thus fadeth another Utopian
which was oil a par with the
'frenzied finance" of the Nonpartisan
League OF North Dakota. likewise in
rs last agonies.
These paternalistic schemes may
bear fruit for a time, but after a few
years Of practical exploitation they
inevitably and invariably meet
with disaster-and the poor taxpayer
bends his back still lower TO carry
the additional burden. Up TO date
Nevada has been singularly free from
the propaganda OF these crack-brain-
ed fanatics; We should make II III
business to keep il free. And here
the reading of the first lesson
Mr. and Mrs. Lon Huron. who have
spent the the past five years in Ely
and Kimberly. will again make their
home In McGill. Mr.. and Mrs. Huron
will occupy the house on Avenue | re-