Omaha daily bee., 1889-07-02
PRESCRIBING BANK METHODS
Text of tho Bill to Regulate None
tary Institutions.
WHAT WILL NOW BE REQUIRED.
Amount Necessary TO Begin Business
One OF the Most Important
Enactments OF the Last
Legislature.
The New Banking Law.

The new banking law, requiring all cor.
poratlous, firms, ana individuals transacting
q banking business, to make a report TO the
sta.o auditor, and providing for a state bank
examiner, one Of the most important en-
actments Of the late legislature, went into
effect yesterday.
Section provides that II shall be unaw-
full for any corporation, firm or Individual to
transact o banking business by receiving
money on deposit, buying and selling ex
change and the like, unless such corporation,
firm or individual shall have property Of cash
value as follows In cities, villages and COM
munities having population of less than
1000 inhabitants, 5000; In cities and vii
lagos having population of more than 1000
and less than 1900 inhabitants, $4,000; in
cities and villages having population of
less than 1000 and more than 1900 luhabi-
tants, $4,000; In cities having population
of less than 5000 and more than 1000 in.
habitants, $4,000; in cities having popula-
tion of less than 5000 and more than 5000
inhabitants, S25, 900; in cities having u popu-
iatlon of less than 10000 and more than 5000
inha bitants, 100000; in cities having popu-
lation of more than 10, 600 inhabitants, 500, 900.
Section 2 provides that every bank corr
poraton firm or individual, transacting a
banking business, snail, at least ten days be-
fore commencing business, transmit to the
u
character set forth in section of this act.
Section provides that every bank and
every corporation, firm or individual tran
sacting u banking business, shall make to
the auditor of public accounts, not less than
three reports during each year.
Section provides that such report shall
state the amount loaned upon pond and
mortgage, the par value and actual market
value of all stock or bond investments, des-
ignating each particular kind, and the
amount invested in each; the amount loaned
upon notes, bills of exchange, over-drafts,
and other personal securities, with the
actual market value of such securities; the
amount of rediscounts and of commercial
paper past due; the amount invested in real
estate, giving the cost OF the same; the
amount Of cash on hand and on deposit in
banks or trust companies with their names
and the amount deposited in each; the
amount OF oil other assets, not enumerated
above, and such other information to the
auditor of public accounts, state treasurer
and attorney general, or any two OF them,
may require. Provided that commercial
paper not in process of collection, six months
past due, with interest unpaid, shall not be
included III the report OF the assets. Each
report shall state such resources and liablll-
ties at the close of business on any past day
by the auditor of public accounts specified
and shall be transmitted to him within five
days after the receipt of q request or requisi-
tion therefor from him. And a summary of
such report in the form prescribed by the
auditor of public accounts, state treasurer
and attorney general, shall be published in Il
newspaper in the place where SUCH banking
business is transacted, or If there Is no news
paper IN the place, then IN the one published
nearest thereto in the same county, at the
expense of the bank.
Section 5 provides that the auditor of pub
lie accounts, state treasurer and attorney
general, or any two of them, shall have
power to call for special reports from any
particular bank whenever,in their judgment,
the same are necessary, in order to full
"a nafa ftnyy lpItr n N r. to
tion.
Section provides that the auditor of pub
lie accounts, state treasurer and attorney
general, or any two of them, shall appoint
suitable persons, having u practical knowl-
edge of banking, to make an examination OF
the affairs of every bank as often as shall be
deemed necessary and proper and at least
once in every year, but no person shall be
appointed who is an officer, stockholder, men,
ber, partner or clerk i'll any banking institu-
tion of this state.
Section provides that these examiners
shall have power to make thorough exam.
ination into all books, papers and affairs of
the bank, to administer oaths and affrma-
tions and to examine on oath or affirmation
any individual banker and officers, agents,
partners and clerks of such bank, and to
summon, and by attachment compel the at
tendance of any inhabitant of the state, to
testify under oath before him or them in re-
lation to tho affairs of sucn corporation, firm
or individual
Section provides that the bank examn-
ers shall be paid $40 a day. which shall be
paid to him by the bank whose affairs are
examined, provided that the fees paid for
any single examination shall not be less
than $40 nor more than $50.
Section Q provides that every bank which
shall fail to make any report required by the
provisions of this act shall be subject to a
penalty of $50 for each day that 1t delays to
make such report; and every person who
shall wilfully and knowingly make.
cause to be made, any false statement or
false entries in the books of any bank, or
shall knowingly subscribe or exhibit false
papers, with the intent to deceive the ex-
aminer, or shall make, state or publish any
false statement of the amount of the capital
assests, surplus or undivided profits, shall be
guilty of felony, and upon conviction shall
be fined not Q exceeding $4,000, and be i'm
prisoned in the state penitentiary not less
than one nor more than five years.
Section 10 provides that every bank shall,
at all times, have on hand, as reserve, an
amount equal to at least Is per cent of the
aggregate amount of its deposits and i'm
mediate liabilities. That savings banks, do
shall have on hand, at all times, as reserve,
in available funds, an amount equal TO at
least per cent of its deposits and immedi-
ate liabilities. The available funds shall con-
sist of cash on hand and balances due the
corporation, firm or individual, from good,
solvent banks. Immediate liabilities shall
include oil claims against the corporation,
payable on demand. Cash shall include
banks and exchange for any clearing house
association. Whenever the available funds
of any bank shall fall below the reserve re-
quired, such bank shall not increase its LID
bilities by making any new loans or dis
counts, otherwise than by discounting or
purchasing bills of exchange payable at
sight; nor shall such bank make any divi-
dend of its profits until 1T has on hand the
available funds required by this act.
The auditor of public accounts may notify
any such bank, in case It's reserve shall fall
below the amount required, to make good
such reserve without delay, and any failure
for the period Of thirty days TO make good
any deficiency in the amount of deposits re-
quired to be kept on hand shall be cause for
the appointment of a receiver.
Section IL provides that the total liabilities
OF any corporation, firm or indi' idual to any
bank or corporation, firm, or individual
transacting banking business for money
borrowed, including in the liabilities OF a
corporation or firm the liabilities OF the sew
eral members thereof, shall at no time ex-
csed 20 per cent of the capital Of the bank.
and In no case shall the total liabilities of
the stockholders of any bank to said bank
or corporation exceed so per cent. OF tho paid
up capital.
Section fa provides that no bank, corpora
tion, firm or Individual engaged IN the bank
ing, broker, exchange or deposit business,
n tua an