The Independent. (Cashion, Okla.), Vol. 5, No. 46, Ed. 1 Thursday, March 20, 1913 Page: 1 of 8
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TKe Independent
VOL. V.
"KEEPING EVERLASTINGLY AT IT IS BOUND TO BRING SUCCESS.
CASHION, KINGFISHER COUNTY, OKLAHOMA, THURSDAY, MARCH 20, 1913.
NO. 46
The New Banking Law
The new banking law passed
by the legislature of Oklahoma is
the most comprehensive measure
of the kind on the statute books
of any of the states of the Union
today, and reflects great credit
upon the study and patiiotism of
the legislators who were instru
mental in its passage. No other
law <jives the banker and deposi-
tor such protection as does the
new Oklahoma lavv. It is based
upon the more than four years of
experience with the Guaranty
Law, an experience which few, if
any, of the other states have ever l
full management of the Guaranty
Fund. As this board is practic-
ally selected by the state bankers,
it tfives them the management of
this fund and as the state bankers
pay the assessments wLL'h make
up this fund, it is but proper ihat
they should have a voice in the
control of it. The new law goes
further and gives the governor
the right to remove the members
of the bauking board or the bank
commissioner, for cause, and the
1 recommendation of two-thirds of
1 the state banks shall be authority
; for such removal. Except dur-
ing the nex} three years, when a
had, and with this experience in
hand and with the co operation
of the bankers of the state and
other students of finance, a law
special assessment of one-fifth of
I one per cent may be levied, no
1 more than one-fifth of one per
j cent of the average daily depos-
its, based on the preceding year,
was worked out that is marvelous. . . ,
, ... i may be levied against the banks
in its completeness No other I J , ,
.. . , * in any one year. In case of a de-
law so circumscribes the banker! J . J T> ,
. . „ , . r ficiency in the Guaranty bund,
in the conduit of the affairs of | J , . , ,
the banking board may issue
the bank nor the banking depart
ment in the conduit ot the offic-
ial duties. It has all of the pro-
tection for the depositor under
the teems of the first Guaranty
Law, under which no depositor of
a state bank ever lost one cent
through a bank failure, and at
the same, time so, protects the
banker that such conditions as
made the former law such a bur-
den to the Jianks cannot recur.
The essential features of the new
law are the manner of creating
the banking board, the appoint-
ment of the bank commissioner,
placing a maximum on the
amount of assessments for the |
Guaranty Fund, providing for
Guaranty Fund Warrants to pay
the depositors. These warrants
are amply secured and bear six
per cent interest and will be legal
Lender as security for public
funds. It is in .the provisions
with reference to the conduct of
the affairs iff' the bails and pen li-
lies for the violation of the terms 1
of the act, however, that the new
law is at its best. Under the
terms of this act wild cat bank-
ing in Oklahoma is at an end.
Its definition of the duties of the
bank officer and the things he is
prohibited from doing are set
i forth in terms found in no other
banking law. One of the weak-
nesses of the former law was in
the issuance of Guaranty Fund. „ , „ ,
, , a . I the regulation of the officers ot a
warrants in case of a deficiency] , . ,
in the fund from regular assess-
ments and providing ample se-
eurity for same, clearly defining
the duties of bank officers, prohi-
bitions in the conduit of the bus-
iness of the banks and fixing the
penalties for the violation of the
provisions of this aft. Under
the new law each bank may select
one of its officers as a representa-
tive and these officers so chosen
shall compose the State Bankers
Association, who shall elect an
executive council for the purpose
of sele6ting nine men from whom
the governor shall appoint the!
bank in lending money to com
panies in which the officer him-
self was interested. Under the
new law the only way such a loan
can be made is with the written
authority of a majority of the
board of directors, and any bank-
er who makes such loan without
this authority is subje6t to a fine
not to exceed five thousand dol-
lars and a penitentiary sentence
not to exceed fifty ) ears. No
other law attempts to prevent the
assignment of stock to escape the
double liability as does this stat-
ute. It provides that no assign-
ment of stock shall release the
three members of the banking, . . f
, . j original owner of the stock from
board and thjee men from whom'
■ „ thiJ the double liability until a year
the governor shall appoint the 1
K . . ,p, shall have elapsed or the transfer
bank commissioner. 1 he mem-, , , •
bera of the banking board shall ; is approved by the banking de-
tne s partment. In the history of bank-
servt without pay, except that 1 i __ . _ „
mg in the United States only
about ten per cent of the total in-
their actual expenses in the per-
formance of their duties shall be
paid out of the general funds of I volved through the double liabil-
the state. This board is to have ity provision, has been colledted
A Farmers' Institution:
Mr. Farmer: Do you do business through this
Bank? If not, why don't you? There was a time
when the bank was considered beneficial only to the
capitalist. The present day sees it of equal benefit
to all and a necessity for the practical farmer. There
are farmers who have not yet learned the conven-
ience, safety, and profit that a bank account affords,
but those now using it are accepted at once as up-
to-date, thrifty, and business-like. Not alone as a
safe and convenient place to leave his money, but as
an ever-ready resort in case of necessity of financial
assistance does the average farmer view his bank.
This Bank is especially interested in the affairs of
the farmer and it ever looks to their welfare and
necessities.
We are not only willing—we are also equipped
to promote the interests of our customers.
The First National BanK
of Cashion, Oklahoma.
The Original Farmers'
BanKing' Institution
for
Cashion and Vicinity
IS
The Farmers' State BanK \
I Most of you who live in Cashion, trade in Cash- >
| ion, or live in the vicinity, patronize this Bank. s
| To the few who do not we extend a courteous f
\ invitation, and if you need reference we refer you to
| any person who ever had business dealing with us.
The proof that we are a Farmers' Institution
and that our operations tend toward the betterment
of conditions and the welfare of the farmers is, that
we strive each day for a better market for higher
Live Stock, Grain, Cotton and Produce Prices. We
\ believe in competition for ourselves and others, and
S have, up-to-date, accomplished a great deal toward
I giving the farmers an opportunity for a competitive
i bid on any farm products orlive stock offered for sale.
WVWWVWWW\'W%WWVW\%VWVW«i
in the settlement of the affairs of
failed banks. The Oklahoma law
thwarts any movement to escape
this provision and makes the
double liability really effective.
Its provisions with regard to
statements with intent to deceive
are just as stringent and also cir-
cumscribes the bank commission-
er and his assistants in the con-
duct of examinations and the en-
forcement of the law and regula-
tions of the banking board in
equally stringent terms. Here a
neat compliment was paid to Bank
Commissioner Lankford, by the
framers of the law, when they in-
serted a provision that nothing
(continued on page 5)
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Barnard, W. F. The Independent. (Cashion, Okla.), Vol. 5, No. 46, Ed. 1 Thursday, March 20, 1913, newspaper, March 20, 1913; (https://gateway.okhistory.org/ark:/67531/metadc107745/m1/1/: accessed April 23, 2024), The Gateway to Oklahoma History, https://gateway.okhistory.org; crediting Oklahoma Historical Society.