The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-01-10
OKLAHOMA BANKS
OUT FROM UNDER
Crissinger Report Shows
More Than so Institu-
tions Reorganized
INTO NATIONAL FOLD
Stampede for Conversion Like
Eagerness to Enter When
Law Was First Made


WASHINGTON. Jan. 9.-Within
A few weeks prior Is November 30.
Es state banks in Oklahoma had
applied for conversion or reorganl-
zation as national banks, Comm
troller Of the Currency Crissinger
revealed In his annual report to-
day since that time many other
applications have been received
hut were too late for the annual re-
port.
Although CrissinEer's report deals
with conditions without comment,
his statement forms an account of n
gampede from the national bank
tystem In the state system following
the enactment of the guaranty pro-
vision in 1908 and n stampede n,
the present time 20 get ont of the
state system and back into the ma .
tlonal system. II is a story OF
popularity turned into gross un-
popularity.
Crissinger also reveals that from
NoVember l. 1920, to November 30,
1921, 81 banks in Oklahoma have
been closed. He also reveals that
during the life of the guaranty fund
up TO November 30, 1921, 95 state
banks have failed and that the de-
posits guaranteed amounted to S11,-
100000.
Crissinger's Report.
Crisslnger's report In fun dealing
with the guaranty of bank deposits
In oklahoma follows:
"ln 1908. the year following the
admission of oklahoma into the
union of states, the legislature
passed ana the governor approved
an act for the protection OF depos-
liors in banks of that state through
" guaranty fund created by assess
,aents upon tho Sanas, based upon
their average deposits. The popular
l,y Of this legislation was manifested
in the liquidation and reorganiza
tlon as state banks of 80 national
banking associations in 1908 and 81
In 1909. From 1910 to 1919, inclu-
sive, 81 additional national banks
In oklahoma liquidated for the pur-
pose OF reorganlzlng as state banks
OF the total number of national
banks liquidated for the purpose in
question. SO subsequently re-entered
the national system by conversion or
reorganization. leaving the net loss
TO the national banking system
OF 81.
State Banks In Majority.
In May, 1908, there were, in OPP
NAoAi'H al 1t1 GIdIe
banks with capital of s6,64O,OO0
total deposits of s21,212,oo0 and as
sets amounting to s29,645,O0O. ON
the same date there were 309 ma
tional banks with capital OF s12,-
2l2,O0O, deposits of $44,705,000 and
assets of s70,517,0O0.
"On June 80, 1921, there were
622 state banks with capital of s15,-
$4,000, deposits S146,7S9,0OO and
assets of $1SO.235. 900. The num-
Der OF national banks was 359, CAPT
tai s24, l6S,000, deposits s239,997..
900 and total assets of $319,42S,00
During the existence of the guar.
anty system up to November /. 1921
there have been closed some o;
banks, the capital at the date OF
closing, exclusive of eight, the
amount OF capital of which was moi
reported. aggregated L,935,50O ant
deposits guaranteed, in sum of ap.
proximately $1I,O5O,OOO. II is re,
ported that there has been collected
from assessments on the banks OF tn,
state and placed to the credit of tn,
guaranty fund approximately 49,,
efo,OOO In collections from assets o.
failed banks.
May Issue Certificates.
The law provides that If at an!
ume the depositors guaranty fund
Shall be insufficient to pay the de
posltors of failed banks, the bankinl
ooard shall have authority to issu,
certificates of Indebtedness known
as 'Depositors guaranty fund war
rants OF the state of Oklahoma" II
Sfder to liquidate the liabilities I,
aepositors. The warrants bear 81!
Z per cent interest from the date o
ssue and are a first lien upon uh
vapital surplus, and undivided
protIts OF each and every bank oper
aung under the banking. laws of tn,
s.ate to.the extent of the liabIlitie
= VI any such bank to the deposiIor
guaranty fund,
When bank IS closed the gen
eral policy of the banking depart
neht mas been to provide for the or
sanitation OF a new bank, giving L
J assets of the closed bank though
De eollectible and the deficit pal,
W e the new bank to protect the de
posltors, the banking board en-
aeavoring to realize upon the asset
W turned over to the bank.
.,r, Reasons For Failures.
me closing of AZ OF the 95 bank
Vas due to a decline in the value O
sne assets, poor management, an
siow loans, inability to realize OF
STSahs, sS, inJudicious investments, an
ooihrIhkage In deposits. In "a case
,tsosihg was due to criminal acts o.
ne part Of officers. including EN-
o,I.,ement, y, misappllcations, or us
the banks funds in speculation
or private gain. In 10 cases tn
''use .,s OF closing is not of record here
FROM the incomplete data a
tUniinand 1t would appear that G
sne closed banks some Sc were take.
ter oy other banks, reorganized o
paeea IN solvent condition an
,Sstnoflzed M to continue business, an
thS th 10 banks liquidated or are 4
S PROCESS OF voluntary liquidation
reports have been received 10 IN
aiect That from November /, 1920
.oklsSooesIaao So' 1921. a. banks Il