Weekly expositor. (Brockway Centre, Mich.) 1882-1894, 1894-01-19
OUR TWO PENINSULAS.
NEWS GATHERED FROM THE
ENTIRE STATE.
Baax COMMISSIONER Sherwoods Annual
Report Speaks Well of our Laws,
and Financial Institutions.

ana FINANCIAL INSTITUTIONS
Bank Commissioner Sherwood has is
sued his fifth annual report of the
banking business of Michigan. The
report deals in detail with many mat
ters which can only be summarized
here; in substance he says that, con-
eidering the unusual distress and dfsas-
ter TO banking corporations throughout
the United States, the banks of Michi-
gan stand as monuments to intelli-
gence of our citizens, the honesty and
intelligence of bank officers, the hnan-
cial ability of directors and the excel
lency of our state and national bank
ing laws. The panic of 1898 was con-
fined almost exclusively to banks. In
other panics commercial circles suf-
fercd as severely as banking corpora
tions, and where banks were affected
the quality of the currency was prime
factor. In the panic through which
we have just passed no one questioned
the quality of our money, though they
may have doubted its sutiiciency. The
chief anxiety of the public seemed to
have been conferred on the solvency of
the banks where the money was de-
posted.
The splendid result in this state was
due to the adequacy of the state bank
ing law. The showing of but two
state bank failures out of a total of 1872,
was worthy of note. The failed banks
were the Central Michigan, of Lansing,
and the Bank of Crystal Falls. One
state bank and one national bank were
closed for time during the panic-the
Ingham County Savings bank of Lam
sing and the First National bank of
Sturgis-but were soon reopened with
increased capital. OF the nine private
banks closed during the year the state
had no supervision whatever. 1t is re-
commended that they should be under
the care of either the state or national
banking department The failure of
the Central Michigan Savings bank at
Lansing is gone into in detail, and the
examination that led up to the arrest
of Cashier Bradley on charge of max
ing false reports explained. The Crystal
Falls bank was carried down by the
failure Of the Plankington bank of Mil
waukee. Depositors expect to be paid
In full.
MIR. Sherwood gives much praise to
the newspapers of the state for their
noble assistance in allaying the finan-
cial excitement and making the con-
fideuce of the people stronger. Not
only for what the published but for
what sensational financial news from
other cities they suppressed, even at
the cost of decreased sales.
Despite the unfavorable conditions
rs new state banks were incorporated
during the year, with capital of
$05G> 900.
Mr.. Sherwood says that while in the
past he criticized the policy of electing
directors who did not give proper at
tention to the affairs of their banks,
there has been no cause for complaint
since May l. The highest compliments
are paid the bankers of Detroit and
Lansing, especially for standing to-
gether as they did during the summer
and averting a general panic. The
commissioner believes, as a result of
closest observation, that the allowing
of banks to incorporate with both
commercial and saving departments
was an element of strength. Michi-
gan's banking law has all the good
features of the national banking act,
with several amendments adapted to
the varied business interests of the
state, and our citizens can congratulate
themselves that it had been in opera
ton long enough to command the re-
spect of the public before we were com.
PEELED to contest with the unprece-
denied monetary stringency of 1898.
The result of the enforcement OF the
90-day rule in Detroit is evidently
pointed to with pride by the commits.
sioner, as it was at his instigatior the
rule was made operative, and greatly
aided in allaying the excitement at
that time.
tits strongly urged that national in.
vestment and building and loan asso-
cia&ons he under the supervision OF
the states. Such supervision of local
associations he does not consider sc
necessary.
The banks paid during the year for
examination and supervision $7,922. So,
while the expenses of the department
were 50, 1920.