The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1929-01-19
GUARANTY FUND LAW
LEGISLATION PLANS
THOUGHT CERTAINTY
Proposals Are Expected Even
Though the Commission May
Make No Rscommsndatio

Although It II unlikely that the
state guaranty fund commission Will
make any recommendations - TO the
future Of the guaranty fund Law, 1t
Is considered certain that seme leg
islation affecting It will be proposed
ct this session Of the legislature.
The Job Of the guaranty fund com.
missioners d to pass on claims
against the fund. It's members have
their own ideas as to what should be
done with the present law but they
are not expected to express them
formally or - q unit.
The situation g It exists, however.
Is m open book to them. They estt-
mate, for instance, that the total ob.
legations Of the fund will total about
"a. 000. 900. They kIl6v also that the
last creditor Of the fund Will not be
paid in full along about the year
1000 or even after that. Everyone
else who Is interested knows the same
thing. The question Is what to do
about 1t.
Retards Bank Buelness
State banks which are now paying
assessments into the fund see Moth
ing ahead Of them but . constant
drain and annoyance unless some
thing q done to relieve them Of their
present burden. They contend that
this drain on their resources Il re-
tarding. in some degree. the business
Of state banks.
One suggestion which may be in.
corporated In . bill Is that 4 one mill
tax levy he made to enable the guar.
anty fund commission to pay Ill Of
its creditors 10 Per cent of their
claims. When this VA done the fund
would be closed out and become =
matter Of history. Sponsors Of this
idea would be willing to offer . bill
to close out the deal ct oree but they
are afraid such 4 bill would MT ret
much support. And thsse = Z r0a-
son for this attitude.
As It stands now the guarauty fund
has paid Z 10 pr cant dividend to
many Of IT. cyodttprs. the dividends
ltotaling about 4lkOo,Ooo. i has
labout 100000 cash on hand. Il u
were to be closed out now the d.
lposttors Of some banks would have
received 10 pr cent On THAR clsiuas'
while depositors in other banks would
receive nothing. They fear mani
would object to IN immediate close
out on the ground that II would b
unfair and that ~ dopooitogs should
|be treated alike.
Hence the one.lail levy idea. It
would raise more than 100000 O.
enough 10 enable the guaranty fund
to finish paying 10 pr cent Al 3D.
vooated before quitting business.
Another proposal which Il bolna
discussed doesn't meot with much
! enthusiasm from anyone. Il q "a
|pass . law providing that when each
deposition has received 10 pr cent
. under the present system the bust
! ness would Be closed down and the
, remaining 80 per cent would - can
celed BY law.
ii The boys with sharp pencils figure
/ that it will take about l< years d
j complete the first round Of 20 pel
; lcent. And they figure that j. yearl
Is 4 long, long time. In lo27 the
D guaranty funds income was ro@lghly
s 4l68yO00. In 1923 It wa4 only tl3o000
y Il costs $4,000 : year = opeyete thu
fund. Estimating that the income d
{ the fund will continue to decrease
advocates Of IN early cloge.out ~ O.
! ltudslinite extension Of the tina When
their object viii - reached.
: They want eetiQn. The Qveotico 4
how 10 got Il