The Jersey City news. (Jersey City [N.J.]) 1889-1906, 1891-02-02
NEW STATE DEPARTMENT.
One Result of Growth in Jerseys Bank
ing and Insurance Business.

sreciai TO the JERSEY City Nesos
TRENTON, Feb. 2. 1S91.-Tne banking
and insur ance interests are increasing at
rapid rate In this State and they need
much attention. There Is O movement
on foot to have established State de-
partment to look after these interests
more thoroughly than at present. The
execution of tine insurance laws is now
vested in the Secretary of State, who Is
ex-officio Commissioner of Insurance.
The control Of banks, trust companies
and savings banks is in the hands of the
Board of Bank Commissioners consisting
of the Governor, the Secretary of State
and the Comptroller.
In all the more important States, the
execution of these laws is vested in a
special officer. aud in many States there
are separate departments of insurance
and banking. Men who are acquainted
with financial matters in the State think
this Is good plan. 1t has been rumored
In some quarters that the present Legisla-
ture win be asked to create such de-
partment.
Secretary of State Kelsey has had this
work under his supervision for years aud
knows its needs. He was asked by your
correspondent what he thought of creat-
ing a department of this kind separate
and distinct from the State Depar tment
He safd:-
u *
insurance should be established in this
State under the administration of one
officer who might properly be designated
the Commissioner OF Banking aud In-
surance. His duties should include the
supervision of insurance companies of
whatsoever kind, as also every descrip-
tion of banking, loan. investment, mort
gage, guarantee and safe deposit COM
panies. whether organized under the
laws OF this State or other States.n
"Do you think the business sufficient to
warrant a separate officerf" asked your
correspondent.
ssThese interest are now of such mag
laws concerning them should be vested in
a competent officer expressly charged
with tnat duty No State officer nor
board of officers can act in that capacity.
ex-officio. and give the subject proper at
tention, nor should these important inter-
ests be made mere appendage of any
other State Office. The business of these
corporations. both banking and insur-
ance, including trust. safe deposit, guar
antee, investment, and like companies
has increased very largely during the last
few years. There have been no fewer
than twelve trust companies and fourteen
banks organized in this State since Janu-
ary l. 1885.
There are now twenty-five banking CON-
panies with total capital stock of ST.
$50. 1876 50, surplus and undivided profits
of 1901, $50. 81, and deposits of &c, 460 1873 %.
There are seventeen trust and guarantee
companies with capital stock of 81 ,309,-
215 surplus $341 ,69l.22, and deposits, $4,-
$50. .905.O2 There are twenty-seyen saw
lngs banks with III ,s53 depositors, total
deposits $50 946 SIS. so. total assets $33. $780,
III 25. There are thirty-two insurance
companies reporting to this department,
with total assets of SOS, ,012, ,251.S4 Their
outstanding policies in this State amount
to S141, ,229, ,231 .06 Their premium receipts
in New Jersey in 1889 were 81, GAG, 562. 10, of
which 81, ,6S4, ,633. 40 was received from New
Jersey business by companies of this State.
The total number of fire and other than
life companies is 14S, making in all 246
banking and trust and insurance COM
panies reporting to this department"
do you not think that this work prop
erly belongs to the State Department, Mr..
Kelsey?.
"The administration of these laws has
never properly belonged to the State De-
partment, and in the absence of a separate
officer should have been connected with
the financial branch of the government.
The legitimate work of the State Depart
menU has also increased largely, more
than doubled, during the past ten years,
and the proper execution of the banking
and insurance laws as they now stand
would involve very large expansion of
this department.
There can be no doubt" added Mr..
Kelsey, ''that the public interests would
be advanced by the creation of a separate
department.