City of Jackson v. Deposit Guaranty Bank & Trust Co.

The experience under the State Bank Guaranty Law, originally enacted in 1914 (Laws 1914, c. 124) and amended in 1922 (Laws 1922, c. 172) an'd in 1926 (Laws 1926, c. 251), was such that when the Legislature convened in 1930 it was found that there was a deficit in the depositors’ guaranty fund of between three and four million dollars. The gathering’ clouds of financial depression and distress were clearly seen and the apprehension of further and numerous bank failures to occur in the years 1930 .and 1931 was definitely felt. It was foreseen, as an inevitable future consequence, that, if the…