The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1883-10-04
THE BANKS OF THE STATE
Foley's Report of Their
Condition to the State Auditor.
A Generally Satisfactory State of Affairs
List of Banks Now Operating I'm
der the State Laws.

William o. Foley, of Greensburg, was In the
city yesterday. and submitted to the Auditor of
State his annual report as examiner of the Indi-
diana State banks. The report is veil prepared,
and gives a very perspicuous, comprehensive
statement of the banks operating under the State
system, of which comparatively little is known
by the public, although the reports of the exam
liner are published in the regular volume issued
by the Auditor of State.
THE STATE BANKS AND THEIR REVENUES.
There are now twenty-one banks in Indiana
operating under State laws, namely: The Farm
ers' Bank, of Mooresville; the Franklin Bank. of
Franklin; Citizens Bank, Of Noblesville; Farm
ers' Bank, Middletown; Citizens State Bank,
New Castle; Farmers and Merchants Bank
and the Randolph County Bank, of Winchester;
Commercial Bank and Citizens Bank, Union
City; the Ridgeville Bank, Ridgeville; Lake City
Bank and the State Bank, Warsaw; St, Joseph
Valley Bank, Elkhart; Citizens Bank, ROckport;
Citizens State Bank, Petersburg; Citizens
Bank, Hope; Citizens Bank, Hartford City;
Citizens Bank, Portland: Adams County Bank,
Decatur; Farmers Bank, of Frankfort, and PeO-
Piles Bank, Portland. Four of the b~anks-the
one at Franklin; the Farmers. at Middletowu;
the State, at Warsaw, and the Citizens'. at Hone
were examined this year, the first tine since
their organization. The aggregate resources of
"hh IN P"' Wv "S VAN 1""HS
and discounts, So, 832,663 OIL; overdrafts,
1903 3d.; United States bonds and
securities on hand, $4,000; other
stocks, bonds and mortgages, S26, 750;
due from banks and bankers. 10;
banking houses, $so,181.14; ether real estate,
$~77,467.45; furniture and fixtures, 1913, 323.o8;
current expenses, S24,439; taxes paid. $l2.-
191.19; cash, S37O.049 70, making a total of
81, 141, 445.5 50. The aggregate liabilities are AS
follows: Capital stock paid in, $1,l79,900; sGr-
plus fund, $205,o5S.10; interest, $72,6I9.95;
profit and loss, S16,424 % dividends unpaid,
$9,09S. 63; individual deposits, So, 654,l40.62;
due to banks and bankers; total liabilities,
$4,141,445.52
The Farmers Bank, of Frankfort, the exam
iDer reports, "has been very unfortunate in its
business career, and is still in an undesirable
condition, but it has been much worse. The
trouble began under a former management,
Those now running the bank came iuto its cOn-
troll July 5, 1881. Just as they had be-
gun to make gratifying progress, the
failure of the Indiana Banking Com
pany came upon them, and put them very
nearly where they were when they started"
The amount due from the Indiana Banking Com
pany is S12,119.76, and the examiner estimated
that probably % per cent. of this VIII be reoov-
cred. The bank, however, is regarded as in a
safe condition. Its assets are 80 per cent. of its
total Liabilities, and they have a reserve of Sl.78
for every dollar due depositors.
THE GENERAL CoNDITIoNSoF THE BANKA
The examiner reports that hIs-.s:GIestigations
show that all the banks are in good ccnSltiSs,
and there has been a general Improvement in
their business during the year. In several the
deposits have been decreasing during the last
few months, but the general condition has
been growing better. There have
been no serious losses for sew
eral years, with probably a single exception.
The bad paper now carried dates back several
years, and the real estate in their possession WAS
generally taken in satisfaction of such debts.
None of the bankers are heavily encountered
with real estate. This class of property is being
gradually worked off, with the growing demand
for it without causing a serious loss to the
banks. In most cases it has been in possession
of the banks for a longer time than all
neglect is that the increasing value of the lands
Will shortly realize them a better profit than
they could now get for the use of the money.
None of the State banks have balances with
other banks of questionable standing.
Taking the minimum reserve allowed by the
national bank act for national banks as a
standard, all the State banks carry at all
times a very satisfactory reserve TO meet their
liabilities TO their depOsitors.
The majority of the banks have paid 8 per
cent. dividends during the past year, ana this
is perhaps the average dividend declared hv
these banks since their organization, though
some nave earned ana paid as nIgn as 10 ana IL
per cent. right along. The st. Joseph Bank de.
clared It's first dividend the past Year. 1t was 90
per cent. on its capital stock. 1t had been turn
ing all its profits into surplus until it equaled
the capital.
The increase in the capital OF the four newly
organized banks is 1905, 900. The aggregate in
crease in the surplus of the twenty-one banks
amounts TO $257, 276.10. The decrease in real
estate during the last year has amounted to
~$17,475.49. The investment in bank properly
has increased $45, 1881 10. The reserve is now
81 per cent. of the deposits, while last year il
was only 81.
RATE OF INTEREST AND OFFICIAL BONDS.
The average interest received on loans is s
per cent. In some cases a smaller rate ia
charged, put not often. Only a few banks pay
any interest to depositors, although In some
cases as high as a per cent. is paid on time Ger.
titicates due twelve months after date. Three
per cent. is the general rate. New York banks
allow 3 per cent. on balances due from them to
these banks. Indianapolis usually allows 3 per
cent, but in one case A is paid. Cincinnati
never pays to exceed 2is per cent Chicago
paws 21a and 3 per cent.
Three banks allow considerable overdrafts,
These are properly loans, authorized by the
board of directors TO persons desiring TO employ
an uncertain amount OF money in their business
for a short time. Average daily balances are
taken" the examiner states, land interest is
charged on this every month. Where so much
care is taken, these are certainly safe loans"
The expenses of the banks in the matter OF
salaries are not large. The highest price paid q
airy is about 81, 600, and it is sometimes less.
almost every conceivable interpretation"
Mr.. Foley says, sis given TO that provision of
the law providing for the execution of official
bonds. In some cases. perhaps in a majority,
with the Secretary of State but once. That is
when they are first elected to their respective
offices, although the elections are held
annually. Again, new bonds are exc
cuted and filed after each annual cleo
ton; and again the President gives
such Il bond every year, while the cashier gives
but the one bond that he makes when entering
upon the duties of his office. In other banks
this order is reversed. In the bank at Franklin
the only bonds on file or that have been given
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