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Story
November 5, 1909
Devils Lake Inter Ocean
Devils Lake, Ramsey County, North Dakota
What is this article about?
Two federal judges in Lincoln declare Nebraska's bank deposit guaranty law unconstitutional, arguing it infringes on inherent business rights and unfairly burdens safe bankers. Similar laws in Kansas and Oklahoma face challenges.
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GUARANTY LAW VOID
A decision rendered by two federal judges in Lincoln has knocked out the Nebraska state law for the guaranty of bank deposits, declaring it unconstitutional and void.
The decision goes at the root of the law, since it insists that the right to do ordinary business is a personal and inherent right and not a franchise to be pleaded for and to be voted after long discussion and careful examination of possible consequences.
A bank is an institution conducted for profit, differing the court says only in degree from the grocery or the dry goods store. If bank deposits are to be guaranteed by a system of fining safe and sane bankers to make up the losses brought about by those who play the dangerous game of wild finance, then it is right and just that grocery owners and dry goods merchants should support the credit of such grocery and dry goods stores so bankrupt.
The guaranty law of Kansas is now undergoing a test in the courts. That of Oklahoma—the mother of all such statutes—has recently been attacked following a failure. It would be an excellent thing for the community if deposits were assured absolute safety, but another system than that of enforced guaranty must be devised.
A decision rendered by two federal judges in Lincoln has knocked out the Nebraska state law for the guaranty of bank deposits, declaring it unconstitutional and void.
The decision goes at the root of the law, since it insists that the right to do ordinary business is a personal and inherent right and not a franchise to be pleaded for and to be voted after long discussion and careful examination of possible consequences.
A bank is an institution conducted for profit, differing the court says only in degree from the grocery or the dry goods store. If bank deposits are to be guaranteed by a system of fining safe and sane bankers to make up the losses brought about by those who play the dangerous game of wild finance, then it is right and just that grocery owners and dry goods merchants should support the credit of such grocery and dry goods stores so bankrupt.
The guaranty law of Kansas is now undergoing a test in the courts. That of Oklahoma—the mother of all such statutes—has recently been attacked following a failure. It would be an excellent thing for the community if deposits were assured absolute safety, but another system than that of enforced guaranty must be devised.
What sub-type of article is it?
Historical Event
What themes does it cover?
Justice
What keywords are associated?
Bank Guaranty Law
Unconstitutional Ruling
Nebraska Decision
Federal Judges
Lincoln Court
Kansas Law
Oklahoma Statute
What entities or persons were involved?
Two Federal Judges
Where did it happen?
Lincoln
Story Details
Key Persons
Two Federal Judges
Location
Lincoln
Story Details
Federal judges in Lincoln rule Nebraska's bank deposit guaranty law unconstitutional, equating banks to ordinary businesses and criticizing the system of fining safe bankers for risky ones' failures. Similar laws in Kansas and Oklahoma are challenged.