Jasper County Democrat, Volume 10, Number 39, Rensselaer, Jasper County, 28 December 1907 — THE OKLAHOMA IDEA. [ARTICLE]

THE OKLAHOMA IDEA.

Washington, D. C., Dec. 21. Oklahoma got into the scramble for financial legislation in the Senate to-day by presenting a bill calling upon the Secretary of the treasury to maintain at all times a reserve fund of $100,000,000 in short-term treasury notes. This bill was introduced by Senator Culberson, minority leader ,on behalf of Senator Owen of Oklahoma, who was absent. It provides that banks may obtain these notes at any time by submitting government bonds or other bonds accepted by the treasury department, and may exchange the bonds for treasury notes up to 90 per cent of the par value of securities offered. The banks sre to pay interest on the notes at the ralb of 6 per cent for the first four months and 8 per cent for the next eight months.

The notes are not to remain outstanding more than one year from the date of issue. As fast as notes are issued from the original SIOO,000,000 the amount is to be withdrawn, always maintaining the original figure. The bill next provides that all national banks in the country shall pay a tax, which shall be turned over to the Comptroller of the currency and held as a reserve fund to guarantee depositors against loss. This section has been demanded by the national banks of Oklahoma.

Under the constitution of the new stjte all banks are required to establish a fund of this kind to protect tbeix depositors against loss. As a result of this depositors in Oklahoma have shifted their- accounts to the state banks in order to obtain advantage of the protective funds. As a result the national banka of Oklahoma have recently appealed to Comptroller Ridgely asking him to establish a similar fund for them in order that they might obtain their share of the banking business in that state. After looking into the question Comptroller Ridgely decided that he could not do this, as there was no section of the national banking act to cover the creation of a fund of this The Oklahoma national banks have now turned their attention to Congress and will amke an earnest effort to have this section of tbe Owen Bill passed. They say they will be’forced to go out of business through lack of deposits if they are not placed on the same footing with the state banks of their section.