Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1896-12-31


is IN some respects detective, think
II may be safely sand that the work of
supervision has had at least something
20 DO IN keeping them In good condi-
ton and inspiring confidence In their
anl1ily to meet all demands which
may nave been made upon them.
The bank examiner believes that a
new banking law should be passed and
NHommends the following as some OF
the most Important provisions that
should be embodied in an enactment
on the question;
First Authort1tng the incorporation
OF hanks in towns cities or villages
having 4 population OF 500 Inhabitants
or lesS with minimim capital stock
Of not less than 81. 0O0 with Il gradu-
atd increase In the amount OF capital
stock required, based upon the popu-
latton OF tho town, city or village in
which tho hank is located.
Second That at least 30 per centrum
OF the amount of capital subscribed
shall he paid in pro rata before bank
tho balance TO be paid IN at stated
periods until the total amount sub
sorthed is paid in.
Third That n certain percentage OF
the GROSS earnings of all banks shall
be carried to a surplus account before
amy dividend is declared until It's sur
plus fund shall amount To - per cent.
of tts capital stock.
Fourth That NO dividend shall DO
declared greater than the net profits:
deducting thorctrom all LOSSES and bad
debts.
Fifth That u minimum sum below
which n bank shall not allow its avail
ahlo cash to be reduced shall be re-
auired.
Sixth That the Stockholders OF
every bank shall be individually liable
for the henetts of dopositors to the
amount Of their stock, in addition to
the liability on nid stock,
Seventh That directors shall hold in
their own right AT least ten aharos Of
banks capital stock before being
qualified to hold that office. that II
shall bo their duty To make, at stated
periods. u thorough examination OF
the banks affairs report of their
findings to he made n part OF the rec
ords Of the bank
Eighth That no executive officer,
director or employee Of II bank shall be
permitted to borrow any OF its funds
except upon ample security, and thon
only upon tho approval of the board
of directors, their action thereon to
appear of record upon the books Of
the bauk.
Ninth That banks shall be pro-
hibited from loaniug their funds on
their own stock or from investing their
funds In the stock of any othor hank
or corporation, or employing their
money In any other business than that
of banking
Tcnth That tho total amount of
loans on real estate security, and tho
amount which may be loaned to any
one individual, firm or corporation
should be limited to u certain percent
age of their capital stock.
Eleventh That provision be made
for tho increase or decrease OF capital
stock upon application to the legally
constituted authority. with certain re-
srlotiuns and limitations looking to
tho protection OF depositors and stock
holders.
Twelfth That any individual or
firm doing business az IA private bank
shall designate u name for such bank;
and all property owned by suoh bank
shall be held In the name of tho bank
and not in the name Of the individual
or firm. The note or Dotea OF any
individual or firm doing II banking
business shall NOT be carried ~ part
Of It's capitol or assets.
Thirteenth That provision shall De
made for the establishment of sepa-
rate bureau which shall have charge of
the execution Of all laws relating to
banks formed ana tTansacting business
under the laws OF the state.
Fourteenth That IN case bank
becamcs insolyent or fails to make
good any impairment Of It's capital
after duo notice the officials having In
charge tho supervision OF banks shall
be empowered to take charge OF such
bank. until such time as a receiver
shall be appointed by due process of
law