Salt Lake Telegram | 1936-11-02 | Page 24 | Starley Urges New Bank Law

I ST STARLEY ARLEY URGES NEW BANK LAW Discontinuance of double liability of f bank stockholders by support of f the proposed fourth constitutional constitutional lonal amendment in Tuesdays Tuesday's election election elec- elec tion lon I. I Is favored by Rulon S. S Starley tato bank commissioner In a prepared statement Issued Monday fonday Commissioner Starley tarley pointed out that such an amend amend- u ment men win insure insure adequate adequate capital C pU U for or the tho state banking system and will bring the tho state into harmony with the national administration Creation of the Federal Deposit Insurance corporation by congress which Insured the great majority of deposits did away with the necessity for so called double stockholders stockholders' liability according to Commissioner Starley Since President Roosevelt signed the he banking act of 1935 double liar lla- of ot bank stockholders has been done away with in other states but under the laws of ot Utah the state banks could not be affected by this act Until the constitution has been amended so as to do away with the arbitrary imposition of double stockholders' stockholders liability the hands of the he legislature are tied The legislature legislature legis- legis lature cannot amend the laws so asto as asto asto to put state banks on an equality with competing national banks The R. R F F. C. C cannot purchase preferred stoc stock in state tate banks until this amendment has been adopted and the legislature has acted the statement statement statement state state- ment set forth Commissioner Starley asserted It is important to the people of Utah that ad adequate quate capital be as assured assured as- as the state banking system and obviously the imposition of ot a liability upon capital invested Instate in instate instate state banks which does not exist with respect to capital Invested in national banks will operate strongly to prevent the securing of adequate of-adequate capital by state banks