The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1923-02-16


"
BANK GUARANTEE OF DEPOSITS
Following is an article taken from the Montana Banker
official organ for the the State Of Montana and
show bank guarantee Of deposits law needed in
Montana at the present time:
MANY STATE BANKS CLOSE
HeEena-Twenty- three state bankers
closed during the calendar year, 1922 of these
two have been reOpened BUSINESS according to a
statement filed with the of the house of repre-
sentatives by State Superintendent Of Banks, L. O.
SHELTON The statement called for during the
discussion of the Deme bill providing for a state
bank deposit guaranty law
The Montana Banker states in an article in the last issue Of
magazine leading the state fought against
bank guarantee will be remembered that Senator Geenng
took very prominent part in killing this bill And it will also be
interesting readers to know that Senator Greenng is
president of the Hardin State Bank which ordered closed
the state banking department a few days ago.
We understand why that law guaranteeing bank
deposits would not be good thing both the bankers and de-
postors Of would the bankers of the state
tain amount of money But doubt this would be made
increased business the the old sock is increasing
rapidly these days with constant reports of bank failures and such
decisions $3.50 fine for classifying records melted
to G. J. Beseker at Malta not long ago.
But can expect this sort Of legislation long
bankers Senator Greenng and his to the legislature
to represent the people, most Of whom depoors
extent The tried in Sheridan county last fall
but thank goodness the people could be fooled No doubt the
bankers supported Hans Dixon for senator the fall election after
Senator Taylor had defeated Banker Bull if
fated Mr. Taylor there doubt but what the bankers
their following would have supported Bull there
doubt but what the farmers and prOgresves Sheridan
county would have gotten behind Nh. Dixon.
The people will never get anywhere either the protection
Of their interests of the interest of the whole people
they begin to think and their judgment voting for
person who represents them No doubt good many
pOsOrs in the Hardin State of Senator Greenng
vice president and which ordered closed Greenng
for SENATOR and probably do not understand hap
pens that after of saving that they penness No won
der Sen Greenng strong ctorn defeating bank guar
antee law the bankers sincere and wish cooperate
the deposOrs and patrons Of their banks than skin them
at every turn Of the road would suggest they get ogeh
er and make deposos money just safe their own when
they are loaning it out first mortgages
The following article taken from the Billings Searchght
expresses the opinion of that paper regard to the Bank Guar
antee law:
The defeat Of State Senator DemePs bill for guaran-
tee OF bank deposits to be depored there were GER
tam features OF the measure which, because the condi
ton OF a large number of banks would make the
proposed law almost impossible of operation at this time
then the law should be amended in such respects
1here Is no longer of trying dodge the fact
Jnat the criminal conspiracy to debate the farmer has
not alone wrecked the farmer financially but has also
placed every bank holding farmers notes and MORTGAGES
in Jeopardy. And long as the farmer continues to
ceveeSs than cost of production his wheat and other
products the paper evidence of his debts cannot be
realized on.
These frozen credits make it impossible for MANY banks
to comply with the provisions of almost any act ouaran
eelng deposits 1t is also evident that for such law to
De eIectVe large would have to be first collected
70 nave fund on hand to pay depostors for losses To
merely nave the law and no money available to meet obi
CATIONS ouo not help much Looking the present situa
ZION over 1t seems that the best thing to do is tn o low
which would go into effect for the creation f o7,ar+
Iund at once but postpone the other provisions Of the
act Tor period Of time deemed sufficient to enable the
banks to comply with it.
we SuIer now Tor our past error not having such
law IN effect years and find it impossible t ot uic
relet from present chaotic conditions