The morning news. [volume] (Savannah, Ga.) 1887-1900, 1897-05-08
SAVANNAH BANKS ARE SOLID.
HIGH COMPLIMENT PAID THEM BY
THE STATE TREASURER.

Certain Institutions in Other Parts
of the state Reported Grossly Mis-
managed-TOO Large a Percentage
of Their Capital Loaned to Direc-
tors and Omcers-Thefr Valuations
on Their Assets Too High-TreaS-
urer Speer to See That Reform Is
Instituted at Once.
Atlanta, Ga, May 7.-State Treasurer
W J. speer, who has just returned from
a months trip over the state making his
annual examination of the banks, gave
out an interview to-day which is likely
to cause commotion in financial circles in
certain sections of the state
Treasurer Speer wants to bring the sit
uation to the attention of the public in
order to bring a few delinquent banks to
time before it is too late to prevent loss
70 their creditors and as he expressed it
this morning, 'he intends to do this If he
gets the proper backing from the press
and the public in his reformation of the
system"
Just here 1t may be reassurtng to Savan-
nah to qoute Treasurer Speer in reference
recently examined. Savannah" he said
has the finest banking system that
have ever seen and the banks there are
all in magnificent condition. Their never
has been a bank failure in that city to
my knowledge, and if the directors and
officers of the banks in other
parts of the state would give
the same attention to their duties that
is given by these officials in Savannah,
our state would be in much better condi-
ton to-day than it is. In Savannah, the
directors of the banks attend the meet
ings, they are paid for 1t. and the ten
dollar gold pieces that are laid around the
directors tables at each meeting are the
best investment that any bank could
make"
Treasurer Speer has visited fifty-seven
of the 124 state banks. which he is re-
quired by law to examine every year. A
majority of these fifty-seven, he says, are
in good condition. but he found a good
many which he characterizes as in bad
condition. He will not at present give the
names of the institutions which he thinks
are doing business on wrong principles
for obvious reasons. He has served no
tice upon some that they must make an
immediate change in their statements of
their liabilities and assets for the prOtec-
ton of depositors. If they do not com
ply he says that he will give the public
explicit notice"
II will soon make another visit to
these" said Mr.. Speer, Ito see what they
have done toward complying with my no.
tice before taking any further action. l
want to give them all ample opportunity,
but at the same time my official duty com
| pes me to see to it that creditors and
depostors are protected so far as the
laws apply. The laws are not
| nearly so stringent as they
should be, and expect
| to bring the whole system before the leg
! islature to have it remodeled and per-
! fected. One of the troubles is that many
/ banks are making large loans to directors
and officers upon their stocks as collater-
| ais. l have found where such loans as
! these have been running as long as five
! years, without the borrowers paying any
! interest at all. In one particular instance,
| 40 per cent. of the banks capital was loan
| ed to officers in this way. Another trou-
BILE is that there is too much padding of
assets and Misrepresentation of the value
| of collaterals and of real estate. In one
| bank found that 30 per cent. of the loans
| and discount were utterly bad and an
| other item was where real estate counted
| as assets was worth only one-third of the
| estimate. The banks do not all show their
actual condition in their published state
| ments. In order to protect those at inter-
! est, / wish to say that I will be glad to
/ give any depositors or creditors the bene-
! fit of the information 1 have obtained by
my examinations as to the business meth
! DDS of banks their condition and the sala-
! ries which they pay to officers, upon per-
/ sonal application to me-"