Show guaranteeing DEPOSITS one of the bills which is very apt to come up at the december session of congress or at least early n the new administration is the stegall bill passed by the house of re representatives p and designed in effect to give the country a guarantee of bank deposits on the face of it the theory of guaranteeing bank deposits sound so bad doubtless it has been revived at this time because of the number of bank closings during the past year or so due to the depression but guaranteeing bank deposits does not work out so well as its sponsors would have us believe the amsterdam new york evening recorder recently made a summary of the experiences of the various states in the matter of the guaranteeing of bank deposits the summary which is convincing is as follows oklahoma enacted in 1907 panic inoperative due to ta fund being practically insolvent rene renewed aled march 31 1923 deficit between seven and eight millions kansas enacted in 1909 a voluntary system not ro rc quiring ciu iring payment in full balance assessed after full liquidation repealed 1929 deficit inoperative since 1926 texas enacted in february 1925 made optional bond system igual sv system stein became practically inoperative in that year replied in 1927 deficit 16 nebraska Ean acted 1911 ali repealed aled march 3 1930 deficit mississippi enacted 1914 march 11 1920 1930 our to deficit of three to faur millions south dakota enacted in in 1915 repealed in 1925 by legislature reinstated bv rr moratorium o in 1926 finally ra re 1 pled aled in 1927 deficit north D dakota kota enacted in 1915 repealed in 1929 deficit ficat washington enacted in 1937 1917 voluntarily cancelled when scandinavian bank in seattle failed wi with th deposits of ond nd then all 0 oc banks in system withdrew warrants issued and not paid inoperative since 1923 1921 the trouble with all laws for the guarantee of bank deposits has been that they are apt to er loose and lent barking bonking bon bor king ond and to make the deio depositors and stockholders of the sound banks and ultimately the public pay for any inefficient or dishonest banking which brings about the closing losier of bankie ban kir institutions what A america in eri ca needs is biot not the guarantee of bank deposits but better banking laws which will niile e the issuing of new bank charters cl more difficult and alid which will not ei encourage courne com i b inking banking to the po A t at which it may mav endanger the welfare of a cormui what we want is not the guarantee of bank boosi oos against losses incurred by reckless banking but the ena of reckless banking itself |