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Show KANSAS BANK LAW WILL BE TESTED Washington, Ausr. 5. One of the first questions on which the supreme court of the United Slates will pass after it convenes In October will be tho application for It to review the litigation in the federal courts In Kansas Kan-sas over the constitutionality of the Kansas bank dpos.tory guaranty law. John Lfo Webst.-r, ex-Senator Cheater Chea-ter I. long and several other lawyers, representing the Abilene National bank and others, filed the application for a writ of certiorari in the ca.-e. The United States circuit court for the district of Kansas, in an opinion handed down by Judge Pollock, ruled that the law was unconstitutional as being In violation of the fourteenth amendment and as unlawfully discriminating discrim-inating against national banks and destroying de-stroying tbelr efficiency. However, the United States circuit court of ai-peals ai-peals for the Eighth circuit reversed the lower court and held the law to be constitutional. "If our contentions are sound, and we believe them to be," counsel for the national banks say in their brief, "the Kansas bank guaranty law will operate to despoil national banks of their deposits by inducing people to believe that depositors in the state banks are guaranteed and that depositors de-positors In national banks are nDt. and cannot be guaranteed. 'Such process of spoliation win result re-sult ultimately In the liquidation of National banks and increasing the number of state banks; or, we may say, the destruction of one and the upbuilding of the otber. as has' been demonstrated In the State of Oklahoma Oklaho-ma "It Is claimed that congress will never authorize the national banks to accept the provisions of the statute for their reorganization as state banks, thus procuring the benefits of the act, because, to do so, vvojld, for all practical purposes, deprive the federal flovertment of control over such hanks ani make said banks subject sub-ject to the control of the state of Kansas, or in other words, to all Intents In-tents and purposes, make them state banks." |