The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1924-05-30
FARMER LABOR PAR
.TY SENDS OUT new
BANK Law PETITION
WOULD SUBMIT INITIATIVE
MEASURE TO VOTERS CALL
ING FOR GUARANTEE FUND
FOR DEPOSITORS; MAY COME
UP FOR BALLOT NOV. 4th.

Petitions for an initiative measure
tic. be known as a bank depositor's
guarantee law, prepared by the Direct
Legislation Club of Montana, was dis.
tributed by the farmer-labOr party
here Saturday. More than 1,20O pc
titions were sent to all parts of the
state. Representatives of the party
by the petition ask that the proposed
law shall be submitted to the legal
voters cf Montana at the regular
election to be held Nov. 4, 1924.
1t is an act providing for the secur-
ity of deposits in the banks organized
or existing under the laws of Mon
tana, creating the bank depOsitors'
guarantee fund eff Montana, and pro-
viding therefore. and penalties for
violation thereof.
The proposal bill provides that on
or before the first day of June and
December of each year, commencing
Dec. 1926, every banking institution
shall file a statement with the super
intendent of banks, verified by the
president or other qualified official
showing the average daily deposits
and capital stock and surplus in its
bank for the proceeding six months.
Under the bills provisions, on the
first day of July and January of each
year, commencing Jan. 1927 the
superintendent of banks shall levy an
assessment of One-fifth of per cent
of the average guarantee deposits
less the paid up capital and surplus
as shown by statements as required
to be made and filed next preceding
such assessment for the purpose of
creating a depositOr's guarantee fund,
the minimum assessment in any case
1 to be $50, until the cash fund accumu-
! lated and placed to- the credit Of the
! guarantee fund shall amount to 2 per
/ cent of the average guaranteed depOs-
4 its, computed upon the last proceed
/ ing statements of average deposits,
over and above all certificates Of de
posits and other obligations chargable
| against the same, and cash deposited
/ in lieu of bonds, when the superin-
! tendent Of banks shall discontinue
/ such assessments.
As soon as the easements are lev
/ led against the bank, the act provides
! they shall be kept in a fund payable
to the superintendent Of banks, and
from time to time the bank will be re-
quired to send certificates of deposit
to the superintendent and the fund
shall be at all times subject to check
or order by the superintendent of
banks.
Each bank will be provided with a
certificate showing that the institu-
ticn has complied with the provisions
of the act, and before the issuance
of such certificate, shall deposit with
the state treasurer as security Of all
its liabilities to the fund, bonds OF
warrants to be approved by the sup
erintendent of banks and attorney
general, in an amount equal to not
less than 1 per cent of its average
daily deposits.
Under the proposed act, banks may
advertise the fact that depositors are
protected by the fund, but not by the
state of Montana Fines and impris-
onment for false advertising in this
matter are provided for in the bill
Penalty is also provided for in case
banks do not remit the assessments.
Claims for deposits guaranteed IN
der this act shall have priority ever
all other claims except federal, state
county and municipal taxes and. Sub
ject to such taxes, shall at the time
of the closing Of the bank be first