, 1875-01-16

THE BT1TE AHU THE 8AV1Nt3 BANkS.
Tho recommendation Of Gov DEyEn1mtE
for legislation to require quarterly reports
FROM Stato banking associations, aud to pro-
yii1e for examinations of their condition by
n State officer, llns been responded to by tho
presentation by Representative QEonaE W.
Nouur, Of Cook County, Of Il hill admirably
ntnptctl to acliiovo ti.oso onds. This bill pro-
poses to supply the legislation which till now
Inns been lacking to clFcctuato tho provision
Of Art II of tho State Constitution, TINT all
banks shall mako full and accurate quarterly
statements Of their condition. The proposed
law requires tint thcso reports shn1l lo ,ntlo
oil the first AIontlay Of January, April, July,
nnt1 October in each year, a1.t1 that they Ellnll
bo sworn to ly the President, Cashier,
md two Directors. This points Of
information TINT they sllnll give nro
not left to tho discretion of tho
officers Of tho banks, but arc clearly defined.
There mist bo specified: The anonnt Of
capital stock, paid a,ld unpaid; all debts due
10 others ttan regular tlcrository; tile amount
of tino deposits and of call deposits tho
amounts deposited with other bankors; tl,o
| cash Rtld checks Of other banks OIL llnnd;
II list in detail Of tho different kinds Of bonds
held b. the bank; tho amount loaned OH renl
estate security; the rcal and personal prop
| orty Of the association and its undivided
profits. These statements arc to DO pub
lislled in tho newspapers and also filed in
the Auditors office.
| This schedule, it will be seen. covers the
essential features Of banks; nifairE. lii
| addition, tho banks nrc required to submit to
u,sannounccd examinations as often MS four
times year. Tho Examiner il to bo mp
| pointed by tho Steto Auditor, anu is to report
in writing to him. For tho protection of the
public it il further provided that if my ban'S
is reported unsound by tho Examiner, the
! Auditor shall ut once 1nake an abstract Of the
report public.
Attention has already been called by
The Tn1nUsE to tho urgent need of
some such legislation. It is not ncccs-
sary hors to repeat the arguments or
tho facts. Nothing should bo so secure
ns the savings deposit of tho frugnl
poor. Tho failuro of half-a-dozen savings
banks in Chicago nlonc, during tho last three
ycars proves TINT under the present system
they are not secure. Fully llnlf million
dollars Of hard.oarned md carefully-ccono-
mized sayings havo been swallowed up in
those failures. Tho State gayo tho stock
holders of these institutions alinlitcd liability,
and yot failed to protect tho public by my
safeguards. Tho same is true, OF course, of
ali tile State banking associations, bu. it
il the interests Of the savings banlss' de.
positors that we arc most deeply con
corned for. Tho present systom of State
banking is one Of almost complete irrespon
sibility. The voluntary quartorly reports of
the banks are nothing better than advertise.
monts. THO result is obvious. The public
lose faith in institutions which, Of all others,
should be most firmly buttressed by tho con
fidcnco Of the people. On overy sido in thiI
city one hears suppressed expressions of dis
trust in tho savings banks. Tho recent state
nents of the savings banks of Chicag'
showed that thoy had not recovered the lie
, posts they held before tho panic. In Con
, necticut, on tho othor hand, there llas beon Q
: stoady increaso during md after tho panic.
It is perhaps fortunate TINT tho Hon. jon:
l G. IIA1NEs, ono Of the Senators from TIL
Y county, il Chairman of tho Sonata Commit
: tee on Banks and Banking. Wonre infonne
> that he sought this position in preference tt
: 4 moro ambitious post, md must believe tlla
i he did go for tho purpose Of promoting ro
form, which his experience rs President @
tho Fidelity Savings Institution has convince
him is most urgent and salutary. hlr. HA1NE
Il il one Of tbs most reputable Savings Dnn
!. Presidouts in tho Stato, and wo look to hir
n to urgo this most necessary reform with q
/ hoch hna sr4fu