The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1926-08-27

has been no disturbance in this state
nor has there been one single case
where a state bank has lost denosits
on account Of a run, but all the ma
tional banks that have failed as
result of withdrawal of deposits. The
facts are that there are MANY peo-
pie, and intelligent people, over here
who believe the deposits in national
banks are guaranteed. l wouldn't run
a national bank on bet in this state
outside of the cities because of the
lack of the guarantee of deposits"
fMr. Stephens has run national
banks.) Owe think our state is fl
nanciallv in much better condition
than anv of the neighboring states
We have no disturbance Whatever
here financially. When a bank is
closed, everybody knows that every
depositor will get his money in full
and it causes no more disturbance
than of you closed a grocery store,
and not half as much. It stabilized
national banks as well, although YOU
couldn't get a national banker to ac-
knowledge it.
Banks Apply for Admission
Robert l.. Goethe, vice-president of
an Omaha firm that buys and sells
| banks and bank stock says, eff the
bankers of Iowa but knew the bene-
/ fits that accrue to a workable guar
antee law SUCH as Nebraska has thew
would not oppose it but instead would
urge its enactment. 4. Upon a recent
visit to the state house at Lincoln
the writer was informed that the ap-
plication for admission of a certain)
national bank with the guarantee sys-
tenn was the twenty second applica-
ton filed with the state banking de-
partment within the last few weeks
soliciting the permission to convert
from a national into a state bank
and enjoy the benefits of the guaran-
tee fund. The interest of the state
bankers is so well guarded and the
qualifications for admission to the
guarantee fund so rigid that but two
applicants could qualify. It is but
natural that the national bankers of
Nebraska who had to compete with
banks operating under the guarantee
law have been the worst enemies cf
the law and would be the last to adj
nit of its benefits, but when they
come soliciting the privilege of con
version, they can no longer consist.
emily deny its advantages" Mr.. Go
ethe was a banker under the ole
guarantee law over ten years ago.
"People through this crisis have
never become panicly in Nebraska
even though the entire community
knew their banks were insolvent, bu
: they had Just enough confidence il
the guarantee law that business wa!
carried on just the same as in norma
times. 1t has cost US a lot of none!
to pay the other fellows losses bu-
am convinced it is the cheapes
money we have ever spent. j. B
Gibson, president Nebraska Statt
Bank, Norfolk.
Sound State Credit
I am firmly of the opinion that hac
Nebraska not had this guarantee Law
on its books cur banking system
would have been completely destroy
ed and many communities have beer
injured for many years to come. Ev
cry dollar of less has been paid t.
the depositors and the guarantee fun,
is now firmly on its feet."-Dale S
Boyles, cashier, Farmers add Mer
chants State Bank, McCoOk.
H. H. Waite, cashier, Beatrice Stat
Bank, says, eve think we have save,
many communities a good deal of dis
tress by having our law in operation
and / think that it has been a grea
benefit to the entire banking inter
ests of this state"
"This bank" writes L. c. Barbour
president of the Brunswick Stat
Bank, "has been a state bank sine
1916. Previous to that time we wer
a national bank. I have never regret
ted the change, though it has beer
quite a burden the last six years
. Without question it has been won
derful thing so far as 95 percent o
the people of the state are concerned.
eve feel that the desirable feature
of this guarantee law have beel
shown in the past few years in tina
there has been a confidence prcmOt
ed among the depositors so that tn
! national and state banks have beel
benefited thereby. We have expert
enced no bank runs on the state bank
of this state for a number of years.
! L. E. Mehlmann, assistant cashier
} Platte Valley State Bank, Mort
7 Platte.
: "While the assessments made t
5 maintain the guarantee fund hav
: been very heavy at times, we fee
: that it has prevented many bank
: from being closed by runs. All class
2 es of depositors have felt secure an
= have left their funds in Nebrask
r banks. This feeling, in my opinion
| has helped the national banks a
much as the state banks j. F. Nj
Dermott, cashier, Greedy State Bank.
]. J. Novak of the Saline Stat
/, Bank says, 'SThe public has not pal
f any attention to the fact that bank
were failing all around us. The pee
e ple had implicit confidence in til