Jasper County Democrat, Volume 11, Number 65, Rensselaer, Jasper County, 16 January 1909 — BANK GUARANTY. [ARTICLE]

BANK GUARANTY.

Democratic Measure Introduced In Senate. PATTERNED AFTER OKLAHOMA IDEA Bill By Senator McCarty Provides For One Per Cent. Assessment of Deposits. A bank deposit guaranty bill was introduced in the state senate Wednesday by Senator McCarthy which is patterned after the Oklahoma lavfr and which the author believes to bd an excellent statute for this state to adopt. The measure provides, that the Governor, thd Secretary of State apd the Treasurer of State shall constitute a State banking board and that this board shall have charge of the raising and maintenance of the bank depositors’ guaranty fund. It

is provided that a guaranty fund shall be raised by levying an assessment of 1 per cent, of the daily deposits for the year preceding the time the law goes into operation, less the deposits of State and United States funds. Each year the guaranty fund would be revised and if there had been a growth in the daily deposits the fund would be inincreased. This tax would be against the capital of all banks and; trust companies except that it would be optional with national banks as to whether or not they should operate under the provisions of the law. Senator McCarthy believes this provision in regard to national banks is an excellent one, as it will offer no excuse for opposition to the measure. The national banks will have an opportunity to place themselves on an equal footing, he says, with all other banks. Whenever under the regulations of the measure the guaranty fund runs down to a point where it is not adequate, the State Banking Board will be empowered to levy a special assessment to meet the emergency, the assessment to be levied against the different banks in proportion to their capital stock. When a new bank is organized after the law has gone into effect, it shall pay into the guaranty fund a sum equal to 3 per cent of the amount of its capital stock. It is provided that any bank which is operating under this law r shall be regarded as being fully qualified to act as a depository for public funds.