9
THE CHICAGO BANKER
August i, 19081
Splitdorf
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Tension
Ma¿neto
San Francisco	L4	-a 4-f]	Chicag•
20 Van Ness Ave.	V^• l • O JJ11 LU. VJI 1	319 Michiga
Walton Ave. and 138th St., New York. Branch, 1679 Broadway
Simplicity and Efficiency
are the strongest points of any machine. Both these features are prominent in the
The simplest and most serviceable of all Magnetos. With this Magneto on your car you can forget all about ignition apparatus.
The Security National Bank
of Minneapolis
Solicits the business of Banks and Bankers throughout the Northwest
Capital and Surplus -	-	$2,000,000
Deposits -----	12,500,000
PROMPT SERVICE GUARANTEED
Guarantee Title & Trust Co.
Accounts of Banks and Trust Companies Solicited
Correspondence Invited
232 Fourth Avenue
PITTSBURGH
when we must tear down and build anew. It is to be hoped that at no distant date this problem will be seriously approached with the fearlessness and fortitude its importance demands.
bungler in things pertaining to credit, the lifeblood of business?
We have done too much patching to our financial structure. The time is near at hand
fully work out the details of such an organization. Other countries have accomplished this, why cannot this great nation? Why is our country, the leader in so many things, the
First Annual Report of the Newly Created Bank Commission for Colorado—Henry M. Beatty
legislative) committee, the advisability of putting the affairs of a closed bank more directly under the control of the banking department— by giving the commissioner the authority to supervise the receivership and appoint a deputy commissioner as receiver on a salary, to be paid out of the bank’s assets, but not to exceed a regular deputy’s salary.
I submit these suggestions for your consideration and think that they are all practical, and will work toward the end we are striving —the upbuilding of our banking institutions.
In our examinations we have found the most serious faults that we have to correct are the past-due loans, overdrafts, and the neglect of the directors of banks to supervise its affairs as they should.
In conclusion I have this to say, that in the conduct of this department we are going along slowly, but I hope surely, and in the right direction. It is our aim to make this department an aid to all the banks, and as we find some good feature we will incorporate it into our system.
The first new feature I want to inaugurate is to get up a condensed statement of our three annual bank reports, have it published, and mail it to the banks throughout the state. And it is my desire to have the first statement published, as soon as the reports are in, for the call of July 15th.
V»
Bank Merger Probable
A combination of two Philadelphia banking firms is contemplated. The merger, which will probably occur about August xst, involves two of the largest houses on the street.
posits amounting to $22,778,282.65. Capital and surplus, 5,428,441.30, and the amount in cash and due from banks and bankers was
.590-82־939<$9
Our banking laws under section 28 restrict loans to officers and directors, but in the case of private banks, especially where owned by one or two persons, they have no directors, and cannot comply with the provisions of this section in regard to consent. In my opinion an owner of a private bank should not be allowed to borrow from his bank, either directly or indirectly, as it depletes his capital to the extent of the amount he has loaned himself, and certainly ten thousand dollars is small enough capital for any bank, and should be kept intact.
The clause in our laws in reference to banks of discount and deposit not being allowed to hold or purchase the stock of any incorporated company, (with certain exceptions) should also apply to private banks.
There is now no method by wdiich an unincorporated bank can be converted into a state bank without paying in the capital in cash. This could be remedied by allowing your commissioner to accept good assets of the unincorporated bank, worth not less than par, in lieu of cash.
The directors should be required to take an oath of office, and this should be filed with the state bank commissioner. There are several points in our law that apparently conflict, and it would be a very good idea to have our banking laws revised, setting forth the intent of the law more plainly.
As a final suggestion—and it is most important, I would like to present to your (legal, or
I feel that you have given me a great honor in thus permitting me to address you-—an honor that no other person can ever claim— that of being the first banking commissioner of Colorado to address the Colorado Bankers Association.
Owing to the conditions last fall, and to the fact that both the public and the bankers were unused to our new banking law, we deemed it wise not to commence our examinations until about the first of the year. Since that time, we have made examinations of almost all of the banks, and I am glad to say, have beep in almost every instance, very cordially received, the bankers giving us every opportunity to make a thorough examination, and showing a desire to comply with our new laws, and cooperate with the department. The conservative banker has nothing to fear from our banking laws, nor the examination of his institution, while the man that is not honest in the conduct of his business needs the most rigid supervision that our laws permit, and should be either forced to comply with our laws, or discontinue the banking business.
It is not my purpose to give you at this time, any detailed figures regarding the state banks, but I desire to call your attention to the fact, that notwithstanding we have no law compelling banks (with the exception of savings banks) to maintain any reserve, our called report on February 14th showed that these banks had an average of about 40 per cent of their deposit on reserve. On that date there were 57 banks of discount and deposit, 8 savings banks, it trust companies, and 57 private banks, making a total of 133 banks, with de-