[Volume XXV
THE CHICAGO BANKER
6
This Bank has been in continuous existence since 1810—nearly one hundred years. It has always given effective service to its clients and has never failed in their protection. Conservatively managed banks and persons having business in Pittsburgh are cordially invited to open accounts.
J. M. RUSSELL 1st Assistant Cashier
J.D. AYRES Assistant Cashier
GEO. F. WRIGHT Auditor
The
Rank of Pittsburgh
JL/jNatioiYal JLAssociation w׳
WILSON A. SHAW President
JOSEPH R. PAULL Vice-President
W. F. BICKEL Cashier
“THE BANK THAT HAS GROWN UP WITH PITTSBURGH”
Capital $2,400,000	ESTABLISHED 1810	Surplus $2,900,000
.	.	President
. Vice-President .	.	. Cashier
Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier Assistant Cashier
C. H. HUTTIG .
W. B. WELLS
G.	W. GALBREATH J. R. COOKE
D’A. P. COOKE R. S. HAWES
H.	HAILL .
J. F. FARRELL .
3rd NATIONAL
OF ST. LOUIS BANK
Capital, $2,000,000	Surplus, $2,000,000	Deposits, $31,000,000
ACCOUNTS SOLICITED
The foregoing rulings and opinions are based upon rulings of the attorney-general and the experience of the auditor’s department in supervising the state banks of this state since December 6, !888.
To make certain in the matters referred to, a clearer and better understanding between the department and the supervised banks; to reduce to the minimum any possible friction in their relations; and to encourage and promote the strongest possible co-operation—looking to a higher standard, both in banking and in supervision—is the purpose of this communication.
Respectfully submitted,
J. S. McCullough, Auditor of Public Accounts.
The Council Meeting
Owing to the proximity of the holidays, and the closing up of all kinds of business, Chairman Crabtree’s big dinner at the Union League Club was not attended by all the members of the council. Even John L. Hamilton, almost a fixture in such events, was kept away. About thirty-five responded, including Andrew Russel and O. G. Foreman, with Frank P. Judson, who would have felt lonesome anywhere else. The business for which Mr. Crabtree called the session was to confirm a lot of work Mr. Rinaman and members of special committees had done in fixing up the fidelity and bonding insurance contracts and in deciding upon time lock cleaning proposals. The “paid” secretary’s office has financed itself almost before it is open. New members, new insurance policies, and premiums on those now in force already foot up close to 3,000 dollars. Mr. Rinaman will from the start take rank with the most able of the secretaries, being an expert in the insurance, as in the banking business. He’s the best thing the Illinois Bankers Association has discovered in years.
T>׳»
First National of White Hall
Myron A. Ellis has been elected second assistant cashier of the First National of White Hall, 111.
Transfer of Stock, Oath of Fealty
Certificates of transfers of stock are required by law to be filed not later than ten days after such transfer with the recorder of deeds of the county in which such bank is located. Duplicates of such certificates are desired for the files of this office. The oath of fealty required by law should be executed immediately in case of election of directors. A person having served as director and being re-elected must again file an oath, the same as in case of a new member. Until such oath is taken a director is not qualified to serve. Prompt transmission of such oaths, to this office should not be neglected. Blanks for the purpose enumerated above are furnished to the banks by this office. Report in Response to Call
Promptness in forwarding such reports is highly appreciated. The law fixes the limit of days and penalty for delays. The report required by law to be published in the bank’s city or locality under direction of the auditor must in every detail be an exact copy of the one filed in this office.
MAUSOLEUM
The above mausoleum is one of our simple, well constructed designs which can be erected at a comparatively low cost with six to eight crypts. How much less barbarous this method is than burying in the ground.
Write for free booklet on “Monuments” to
CHAS. G. BLAKE & CO.
The Old and Reliable Makers of Mausoleums and Monuments 782 Woman’s Temple Tel. 115 Main Chicago, 111.
security for its loans, why not all of the bank’s stock? The department rules that the acceptance by a bank of its own stock as collateral security for a loan is technically equivalent to an impairment of the capital. Banks are advised to reject such stock as collateral.
Stock in Other Corporations
As the department understands the rulings of the courts of this state, they are to the effect that a corporation, whether organized under the banking act or the general incorporation act, has no power to invest in stocks of other corporations unless expressly authorized by the act under which it is ■organized or unless it is necessary in order to carry out the purpose of the organization. Investments in stock should therefore be discouraged. Where shares in other corporations originally pledged as security for loans have been acquired, early disposition thereof should be the rule. Borrowed Money
This department cannot consent to have shown as “deposits” in the bank’s reports rendered in response to call, money borrowed from banks or other sources. The reasons must be obvious. Such items should appear upon the bank’s books and reports as “Due to other banks” or “Bills payable.”
Hidden Assets and Contingent Fund in Deposits
Section 7 contains the following provision:
“Any and all persons and associations organized under the provisions of this act, shall make to the auditor a report according to the form which may be prescribed by him, verified by oath or affirmation of the president or cashier of such association, which report shall exhibit in detail and under appropriate heads the resources and liabilities of such bank or association before the commencement of business on the morning of any day he may choose.”
To conceal intentionally some of the bank's resources or to inflate the deposit liability with a reserve or contingent fund (though it may be done as a safety measure to the bank) cannot be justified. It must result in deceiving the public, the stockholders, and the auditor with an incorrect report, which is contrai־}■ to the purpose and spirit of the act last above quoted. The resources of a bank (except real estate carried over five years) should be shown on the bank’s books at a fair valuation, and if a reserve or contingent fund is to be created it should appear on the general ledger of the corporation.