90d1e8b9None
Click image to open full size in new tab
(By United Press.) OKLAHOMA CITY, Okla., Sept. 30.-The entire state of Oklahoma is today watching the first practical working of the bank guarantee, when 400 depositors of the suspended Columbia bank were paid the amount of their deposits from the funds of the state banking board.
Click image to open full size in new tab
# BANK GUARANTEE # LAW IN PRACTICE [UNITED PRESS LEASED WIRE.] Oklahoma City, Okla., Sept. 30.- The entire state of Oklahoma is today watching the first practical working of the bank guarantee, when 400 depositors of the suspended Columbia bank were paid the amount of their deposits from funds of the state banking board. So confident were the depositors that the board would make good their deposits that the customers of the institution have made no demonstration of any sort, and there has not been a semblance of a run. The exact state of affairs of the Columbia bank is not known at this time. Bank Examiner Young refuses to talk since his statement of yesterday.
Click image to open full size in new tab
board Tuesday night as the condition upon which the bank would be permitted to re-open. Mr. Young was asked concerning the truth of this rumor He refused either to affirm or deny it. where is much dispute between bankers in eastern Oklahoma and bankers in western Oklahoma over the actual value of this oil paper. Eastern Oklahoma bankers laugh at the fear of the bank commissioner as indicated by his laying aside this oil paper as undersirable assets. They say that this paper, when the property is fairly valued, is just as good as the offering of wheat or corn to back up a loan. The country bankers whose reserves represent about three-fifths of the bank's deposits laugh at their predicament. It is probable that they may be required to come to Oklahoma City to certify to their claims. If they should do this it might happen that the home folks would get to talking about the trip, and start the story that the bank was hardpressed if the owner is compelled to go to Oklahoma City after money. This might result in a foolish run on the bank. Mr. Young yesterday had a special fund for the accomodation of small bauks that might be in need of immediate funds to carry out pending contracts. Governor Haskell assumed a threatening attitude yesterday toward sev. eral national bankers. Friends of the guaranty system still say that the enmity of national bankers. rather than anything that may have been done by its officers, was the cause of the Columbia bank's suspension. Damaging stories that shut off the bank's credit in several of the larger cities in the north and east weer circulated they say. Governor Haskell sent three or four men out today to engage national bank officers in conversation about the guaranty syste and the probable outcome of the present liquidation. Some of these national bankers did not drop rose leaves in the hands of the governor's emissaries. The emissaries returned to Governor Has. kell and made affidavits as to what the national bankers said. Governor Haskell at once called up one of these bankers and informed him that as governor he would call a grand jury in every county if necessary to stop such talk, He also threatened to withdraw deposits of state funds from certain national banks. President Norton says he has in OK lahoma oil properties, Industrial stock and bonds, a gross property of about a million dollars, though his liabilities are reported to be heavy. He listened willingly to the proposal of friends that he give a deed of trust upon his property after which these friends would raise sufficient money to enable him to regain control of the bank and meet all its obligations. The state officers, however, would not listen to this proposal. Norton still Insisted
Click image to open full size in new tab
TEST FOR BANK GUARANTEE LAW OKLAHOMA CITY, Oct. 1.The bank guarantee law was given a severe test here yesterday when thousands of dollars were paid out to the depositors of the suspended Columbia bank from funds of the state banking board, and financiers today are declaring that the measure has already proved its worth. Today the directors of the institution submitted a proposition to the state board looking towards the reopening of the bank. Although considerably over $150000 was paid out by the banking board yesterday it. was stated today that sufficient funds were still on hand to pay every demand that might be made against the Columbia bank.
Click image to open full size in new tab
HASKELL ORDERS BANK PAYMENTS INSOLVENT INSTITUTION IGNORES INJUNCTION COMMISSION MAY BE HELD IN CONTEMPT President of Failed Firm Offers Banking Board $800,000 to Resume Business and May Get Consent [By Associated Press.] OKLAHOMA CITY, Okla., Oct. 4.Notwithstanding the restraining order issued by the federal court at Guthrie, Bank Commissioner Young, under direction of Governor C. N. Haskell, continued payments to the depositors of the failed Columbia bank through the day. Judge Cotteral will come to Oklahoma City tomorrow and hold court to ascertain if the bank commissioner is in contempt. President North of the bank and his associates have offered $800,000 to the state banking board for a return of the bank to their hands, and the banking board members said tonight that the bank probably would be transferred to its original officers tomorrow. Attorneys for the state today offered Judge Cotteral certified checks for the amounts claimed by the petitioners for a receiver, but asked that the checks remain with the court until it can be shown that the bank has offsets against the deposits. Commissioner Young and the other members of the state banking board declared tonight that the restraining order does not apply to them, because, they assert, it enjoins them from preferring one creditor above another, which they deny doing or having done.
Click image to open full size in new tab
NO ATTENTION PAID TO ORDER Oklahoma Bank Commissioner Disobeys Injunction of Federal Court. Oklahoma City, Okla., Oct. 4.-Notwithstanding the restraining order issued by the federal court at Guthrie, Bank Commissioner Young, under direction of Governor C. N. Haskell, continued payments to the depositors of the failed Columbia bank throughout the day. Judge Cotteral will come to Oklahoma City tomorrow and hold court to ascertain if the bank commissioner is in contempt. President Norton of the bank and his associates have offered $800,000 to the state banking board for a return of the bank to their hands, and the banking board members said tonight that the bank probably will be transferred to its original officers tomorrow. Attorneys for the state today offered Judge Cotteral certified checks for the amounts claimed by the petitioners for a receiver, but asked that the checks remain with the court until it can be shown that the bank has offsets against deposits. Commissioner Young and the other members of the state banking board declared tonight that the restraining order does not apply to them because, they assert, it enjoins them from preferring one creditor above another, which they deny doing or having done.
Click image to open full size in new tab
THE DEPOSITORS PAID In Full Under Oklahoma's Banking Law. Oklahoma City, Oct. 2.-A steady stream of depositors is making its way to the paying teller's window of the Columbia bank, which suspended. Depositors are being paid from funds furnished by the state banking board under the new guarantee law, and from cash on hand when the bank closed. This is the first demonstration of Oklahoma's bank guarantee plan, and there is general satisfaction.
Click image to open full size in new tab
BANK GUARANRY LAW JUSTIFIED There was a $3,000,000 bank failure in Oklahoma within the last two days and all the organs of plutocracy got ready to rejoice over the failure of the bank guarantee law. The Statesman cawed a feeble pipe and the Oregonian gave a number of quotations from eastern journals, but there was no excitement in Oklahoma. The failure caused a ripple for a single day and then the after was practically an incident that was closed. Do you read anything about this in your daily paper? Not much. The big news combines are not in the business to exploit information that is of benefit to the people. Just think of it. A three million dollar bank failure and not a depositor loses a dollar or is in anywise inconvenienced. The bank's doors are never closed. only a change from the bank officials to the officials of the state. Truly it was a great demonstration of the justice an dbenefit of the new law. The following editorial comment upon the case we take from the Oklahoman, of Oklahoma City While the public interest in Columbia bank suspension waned after the first day when the depositors found that they could get their money, and died altogether on Thursday when depositors ceased to apply, discussion has continued unabated among the bankers and business men. The general feeling is one of surprise that conditions in financial circles did not show at least some signs of uneasiness and disturbance. As a rule the suspension of so large a bank would mean a run on country banks which deposited with it, and consequent embarrassment on their part. There was none of this, everyone appearing to wait to see first what would be done with the Columbia depositors. Of course a certain amount of excitement was allayed by the presence of Governor Haskell who, as the head of the banking board, was in charge of affairs. Some of the antagonists of the state banking law point out that the governor could not be in charge if a number of banks were involved in different cities, but in the future cases the quick settlement of the Columbia's affairs will stand as a precedent to prevent undue alarm being felt, and the state bankers do not consider that the future holds any fear of panic for them under the existing system. The cry has been raised in certain quarters that the other bankers must pay for the business delinquencies of a fellow banker. This does not appear, however, as the state bankers do not consider that the regular assessments to maintain the state nuaranty fund are more than a legitimate tax upon their business. In the case of the Columbia the banking board members are inclined to think that the fund will not be impaired as the bank will be able to make good its shortage. It is admited by all bankers that sometimes poor loans will be made. and that poor crop and business conditions will sometimes seriously depreciate the value of what were good loans when made. and it is admitted that a bank's loans are rather more important than the deposits, inasmuch as the loans must return the deposits with interest, but in the ordinary course of business the provisions of the law for undivided profits, reserve and surplus and capital stock liability are protection. It is when all these fail, however, and the bank is undeniably "short" that protection is needed and it is this that the guaranty fund has shown it will provide in Oklahoma. Indiscretion on the part of a single banker might, it is true. compel the other bankers of the state to pay a small price for quiet and the security of their own banks. But the price while paid by the bankers is borne by the people. for it is the public that supports the banks, and the bank guaranty fund is the only way the public has of securing itself against misfortune and its own hysteria. The consensus of opiion of all the bankers but the national bankers, is in favor of the system as tried out by the Columbia's suspension, and many of the national bankers are ready for conversion to the state plan which the state bankers now predict will shortly become general. Opposition to the state banking plan is being curbed in a measure by a very general impression among Oklahoma business men, an impression that is the spectre that stalks ever at the elbow of the national banker. It is that any continued panic among Oklahoma banks would result in the establishment of a postal banking system. The experience through which the Columbia has passed will prove a benefit to many Oklahoma bankers, however, for it has not been without its lesson. Generally when misfortune or disacter assail us they leave us chastened. It is so with banks. Sometimes bankers forget training they have received. Sometimes they have not had the proper training. In such cases experience is the teacher, and this instructor spares not the rod. Bankers of long experience and proven capacity declare that a bank should not be conducted for any one set of men or class of trade: that a bank should have no politics; that it should not know east, west north or south: that it should favor no particular religious organization or denomination: A bank should so unite the business interests of a community that all may contribute to its success and prosperity. It should never extend such a large credit to any one person or firm that the failure of such a party or parties would imperil or embarrass the institution. Jim Brady's mania for public functions and dress parades has led him to issue a call to assemble all of the county commiss-
Click image to open full size in new tab
# THE DEPOSIT GUARANTEE LAW. While the public interest in the Columbia bank suspension waned after the first day when the depositors found that they could get their money, and died altogether on Thursday when depositors ceased to apply, discussion has continued unabated among the bankers and business men. The general feeling is one of surprise that conditions in financial circles did not show at least some signs of uneasiness and disturbance. As a rule, the suspension of so large a bank would mean a run on country banks which deposited with it, and consequent embarrassment, on their part. There was none of this, everyone appearing to wait to see first what would be done with the Columbia depositors. -The Oklahoman (ind. dem.)
Click image to open full size in new tab
# SEEN IN A NEW LIGHT. While it is reasonably certain that every state bank that contributed its quota to meet the demand created by the Columbia bank failure will be reimbursed, we are inclined to adopt the opinion of a prominent Oklahoma City banker, that if the assessments of these banks had never been repaid they would not have lost anything. The banker referred to asserts that the then new bank guaranty law was the prime salvation of Oklahoma, financially, when the panic of November, 1907, swept over the entire country. No one who carefully studied the situation at that time and during the