New-York tribune., 1878-11-26
sTlTE BANK REPORTS AND IN rESrllEyrS.
INVESTMENTS IN STOCKS OR BONDS LIMITED TC
UNITED STATES OR STATE sECUMTlEs-THE AT
ToRNEY-GRNERAL's OPINION.

INVESTMENTS IN STOCKS OR BONDS LIMITED TO
UNITED STATES OR STATE sECURITlEs-THE At
ToRNEY-GENERATs OPINION.
ALBANY, Nov. 25.-llenry l.. Lamb, acting
superintendent of the Bank Department to-day issued
the following circular to the banks OF the State
The question having been raised respecting the power
Of the superintendent OF tue Bank Departnent In pre-
scrbg the forms for the quarterly reports OF the state
banks, which have been IN use since seDtember 1877
submitted the To the Attorney General His con-
illusions stated IN the opinion which sugo'n From
the examination statutes TO the conclusion
that lt Is not lawful Tor banking associations or Dahks
under the laws Of the state TO puehasc FOR
the purpose OF Investment other stocks on bonds than
those issued by the State OF NewYork OF the United
htHee. This Judgment is sustained by the opinion OF the
Attorney IL VIII, OF course, be the duty OF tue
B9nk superintendent 10 maintain the lawful rule thus
IN regard 10 Investments in stocks or bonds
by banks. long the laws regulating the banks and
banking associations remain they are.
Attorney General Schoonmaker in the opinion re-
ferred TO by superintendent Lamb, that he is OF
opinion that forms for quarterly reports from
banks, banking institutions and ind vidua bankers are
not cnd the puryew OF the statute but that the facts
required be reported may properly be called for by
the superintendent" After reference to the laws
the Attorney General says:
The object these reports ia to furnish the surerin
tcnden VINO the supervising representative Of the
ing the condition Of the bank. The statute requires
true statement in respect To the various items and
ticulars enumerated. Ianiesty, tho superintendent
must determine how full and detailed the statement
must be, TO inform HIM satisfactorily OF the cODdon OF
the bank. Mere general statements can give him no
useful information. The statute cOntemDates com
plee disclosure OF its affairs on the part or the bank
The forms prescribed call for no more than seems
essential 10 n thorough and necessary knowledge Of
the bank. | Think therefore, the superintendent has
not exceeded MS duties powers the pres
cribed for the quarterly reports. This view
is strengthened BY subsequent section which
makes 10 the duty Of the Superintendent,
whenever in his opinion there shall he gOon
cause To suspect that any bank, banking associa-
ton or individual banker has made an incorrect I'M
perfect quarterly return or Is III an uLsOund or unsafe
condition banking business, To cause an examna.
ton 10 be made forthwith into the books, papers and
affairs of the institution, ana to cause report thereof TO
be forthwith published Mt the expense Of the bank
lnanswer TO your second inquiry respecting the In
vestments when may lawfully ba made by state banks,
opinion that they only invest In the stocks,
bonds or other securities, expressly authorized by
statae. aCorporations can only exercise the powers
granted % them by and without grant OF power to
banking Institution To invest in other securities has
no right 10 do Toe only iuvestmenisAow author
zcd Of the United states and State OF
NeW-lOrk.