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Show auty plan a mutual Insurance plan one hundredth part of one per cent of the deposits would suffice for Insurance Insur-ance and the stability of the coirt-merce coirt-merce of the country as well as the stability of the banking sjstem of the country would be greatly promoted promot-ed by this method applied both to state and national banks. The banks require customers to give security, for a loan. The state ought to require the hanks to secure their deposits. It will be better for the depositor and belter for the bank cr, but what Is of more Importance, it will be better for the stability of the commerce and the business interests inter-ests of the people of the United States. i" s. Senator R. I.. Owen In Norman E. Mack s National Monthly for September. THE OKLAHOMA BANK GUARANTY GUAR-ANTY LAW. The state banks of Oklahoma had $lS.tKMi,ooii of deposits when the Oklahoma Ok-lahoma law went into effect February 11. l'JUS. Since that time. K.H state banks were chartered, including seventy-three conversions from National banks to state banks up lo the report of June 2.1. 1!u;i. Tho number of state bank's has in-ci in-ci eased from 47f' to (",02 to November 10. 1J. and the Individual deposits in state banks iucreased from IS,000,. CPU to .4f,77o.ouO. The national banks. February U, 1!HS, were 212 in OHahoma On June 23. r.'Oli, there weie 222. ninety I national banks having converted and liquidated since the tuatanty law j went Into effect. i The average reserve held for the state banks, November 10, 1'jo'j, was 49.7 per cent, about as substantial a reserve as is held by the Bank of Eng land. The national banks have not Increased In-creased In deposits to any substantial extent, the national banks having had SiJS'.iv.tioo, February 14, lOuS, and J'JS.lll.uu.i, June 21!. H'U'.i, but are entitled en-titled to credit fop S7.u0rj.0oo of deposits depos-its transferred fiom the national banking system to the state banking system by the conversion of national banks. The stale of Oklahoma has the best banking system In the United States It protects the small depositor and vlves him confidence and when there Is loss clue ;o mismanagement the loss is distributed In such a manner that it Is not felt by any of the contributing con-tributing banks. It Is alter all, merely mere-ly a' mutual Insurance dun, the Insur-a:u Insur-a:u e fund being administered by the state. I established the !irsl national bank in Oklahoma find was president of it leu years, ami I admire the recoul of the national brjnklng system of the last ten years as far as the safety to the depositor is concerned Yet. one cannot llrget the violent disturbance to commerce and the Injury to batik depositors which followed the embarrassment em-barrassment of the National Bank of Commerce of Kansas titv, In 1007, a line Institution with deposits of ouo.onu, which paid In cash over S17.-nou.u.io S17.-nou.u.io before closing its dooes. This tragedy was due to a suspicion and a run. excited by a circular letter of an oil company, advising against taking tak-ing drafts on this bank at the time of the oanie The YY'alsh failure, in Chicago, and the Morse-lleinze failures In New York, creally disturbed the country whe-n there was no sufficient reason to justify It and when an Insurance fund would have made such a catastrophe catastro-phe Impossible. It Is unfortunate that the enormous power of the grent central cen-tral banks should be encouraging the opposition to a system so wise and scj sound as the bank depositors' guar- |
