The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-12-17
A CnrAr wn0NG ooNrrMrLArrD.

The dopoetors guaranty fund is short some
tnins Ike 80 ooooo ooo We are unable to give
tho exact figure but the above amount has been
mentioned by various ones familiar with tho
natter, That ls Il will require that amount Of
money TO discharge the obligations OF the guar
snty law and provide tho available surplus re-
qolrca to make It effective in the future
where Is the money TO como from with which
10 pay this ana save tho dcpoeltors in tho nu-
ntorous failed banks from loss?
THAT the state bankers OF tho state with few
exceptions, aud tho practical politicians Of tho
major party. also with few exceptions, contem-
plate dIscharging the debt by general taxnton Is
beyond question. That thus is contemplated tho
imposition Of a terrific wrong upon tho people
OF this state. Is likewise beyond question.
There Is precisely as much Justice and reason
in taxing the public Of Oklahoma to restore this
fand and make good the losses OF tho banks
under tho political system which brought on
the epidemic OF failures, as there would be In a
legislative appropriation to repay to a bank the
lofsscs sustained at tho hands OF bank robbera
We say there is much reason and Justice in
the one as the other, which amounts TO saying
there is no reason or Justice In either
Contrary TO tho understanding of many peo-
pic, II not most people, tho state OF oklahoma
never pledged either It's credit or Its honor to
guarantee the deposits of dcpostors in state
banks. Tho state OF oklahoma enacted law
whereby the various state banks ss n part OF
their contract with ana obligation TO the state
pledged themselves 10 create and maintain a
rind for such purpose, Tho state admlnlstra-
tive agents we're charged with the supervision Of
this system.
1T might be said that because the agents OF
tho state were corrupt and inefficient and
other connlved to dsspato this fund illegally or
permitted bankers to do SO. the state itself that
is. the taxpayers OF the state. are responsible
But II such theory bo accepted, then it follows
that tho taxpayers OF tho state could be held
Responsible for murder because the state had
cuacted law forhdding murder; or for the
damage resulting TO any citizen or group OF
,tizons from the commission OF any act which
the state had forbidden by statute
But such an argument les absurd II finds no
support in either law precedent The state
bankers OF the state have been IN control OF the
tate banking department since the law was
lst amended. They have the nominating privi-
lcge in the selection OF the public official who
is charged with tho administration OF the state
banking department. and board OF their
number IN both theory and fact can direct how
that department. shall be conducted. The scan
dals which have made the present admlnistra-
ton notorious throughout the state especially In
respect OF tho banking department wero known
hy the various state bankers to he brewing tor
months before the storm broke
Bat instead of exerting the authority they un-
questionahly possessed instead OF exercising the
discretion the law clearly contemplated they
would exercise, there was a quiet and organzed
deserton OF the state banking system FOR the
sanctuary ot the national banking system. In
other words. rather than too the mark and dis
charge their obligations to themselves ana the
state, every state bank that could do SO left
the crooks free 20 ply their trade and dUckcd
into the national banking system.
There is hut one equitable way 20 restore the
depleted guaranty fund. That Ia hy increasing
the levy against state banks and gradually over
term OF wears and ny rigid supervision and
honest conduct build up q rupd capable OF pay
Ing losses and yoJeemins tho credi,--ot the
state banks, not OK tho state OF oklahoma The
credit az the state Is not involved.
'rha taxpayers OF oklahoma should ress,
every attempt TO fasten upon them this 50 O0o.-
ooo any portion OF 49,