Watertown republican. [volume] (Watertown, Wis.) 1860-1906, 1897-12-29
STATE BANK REPORT.
Improvement in General Business
Noted in Examiner Kidd's
Statistics.

Madison. Wis, Dee. 23.-[Special.] /
The fifth semi-annual report of State
Bank Examiner Kidd, submitted to the
governor today, shows a gratifying in
crease in the business of the banks, which
is an Indication of general increase in
business.
The total number Of state, private and
savings banks in the state November 6
was pa, an increase of three in six
months. Of these 100 are state banks,
10 private banks and only one--at Be
loit-a savings bank. A summary Of the
statements Of all these banks shows the
total resources to be S46, 593, 54O.9S, an
increase of 1851, 4O1 IA; the total loans
and discounts, $27, III, 6O4.77. an increase
of $1,3S7 ,203.4O; capital, 1907 ;3S4.39
posits, $50, 579, 1897 90, an increase of 3d.
All ,2SS.1S; available cash reserve, S13,-
W., O6I.O1, an increase of 5000, S6l.lo.
Cash Reserve Is Very Large.
''The cash reserve the examiner says,
sis the largest reported since the organ
ization of this department, both in ag-
gregate and propOrtionate amount, it be-
ing, Notwithstanding the large increase
in deposits, 1852 per cent of the total
of such deposits. This gratifying increase
in deposits is largely due to the improved
more general employment of all classes
of labor, and the advanced wage scale,
making depOSltOrS of many who until re-
Gently were related to the banks as bOr-
rowers only, or not at ALL The increase
in loans and discounts marks a higher
degree of confidence in business condi-
tons, showing that banks are more dis
posed than heretofore to encourage and
support business enterprises"
Three new state banks were organ
lied during the six months, at Black
River Falls, Mayville and South Milwau-
kee, the latter being q change from a
national to a state bank; five new pri
yate banks were organized, at Evans
vile, Independence, Loyal, Merrill and
WeStby.
Two private banks ceased business, the
Montfort bank, at MontfOrt, sold to the
Montfort State bank, and the Exchange
office of l.. w. Heindel & Son at South
Wing, liquidated. Three state banks were
closed at Amigo, Lodi and Edgerton. The
failures at Amigo and Edgerton were due
in both cases to criminal operations of
the cashiers, both of whom have con-
fessed their crookedness. The closing OF
the bank at Lodi resulted from the fail
ure Of the Edgerton bank.
The Edgerton Failure.
The examiner comments at some length
upon the closing OF the Bank of Edger-
covery Of large losses inflicted upon the
bank through criminal frauds perpetrated
by its cashier, and upon the cause which
led to its ruin, which he has previously
covered in a special report, from which
he makes some extracts. He further
says: This department has constantly
endeavored since its creation to enforce
upon the directors of banks a sense of
their duty to the institutions under their
charge. Where mismanagement occurs
1t too frequently is found that the officers
and boards of directors have placed too
great confidence in and exercised too lit
tie supervision of the banks active Off
Gals. National Comptroller Eckels says
in one of his recent reports: Bank di-
rectors should know whether precautions
airy measures in the verifying of entries
upon ledgers or pass books are taken,
and whether employees, from president to
bOokkeeper, are engaged in speculativ en-
terprises, employing the banks funds thus
endangerlng the safety of those trust
ing the bank. This view of the national
comptroller is in line with that expressed
by me in circular letter forwarded from
this office one year ago to the address of
every bank director Of a state bank in
Wisconsin.
1T is of the utmost Importance that
bank directors and persons owning pri-
waite banks make themselves conyersant
cles of those who have charge of the
bank funds, make careful inspection of
the loans and securities, the amount and
character Of Overdrafts; the best method
of providing for the safe issue of certifi-
Gates of deposits and ascertaining the
amount and number of those outstanding,
and secure proper bonds for bank officials.
In this particular [ desire to call the at
tention of banks and bankers to the very
excellent surety and guaranty companies,
which for a reasonable premium, give
bonds for the fidelity of employees.
Speak OF Responsibility.
'"The above suggestions are in no way
intended to shift the responsibility which
attaches to supervision of banks by this
office, but rather to emphasize the necessi-
ty for the adoption of all practical safe
guards for the protection of the patrons
Of the banking institutions Of the state.
Notwithstanding these suggestions are
deemed by me to call for the most serious
consideration, l feel warranted in con-
graduating the state upon the strong con-
Gition of its banks as a whole 1t is a
Of banks, i'll Wisconsin have been very
small when compared with those result
ing from failures of banks in all our
neighboring states"
A comparative table giving the total
business of these banks for the past two
years shows the depression during the
Bryan boom" and the upward reaction
since on November Is, 1895 the total re-
sources of liabilities were $43, 601, S29.4 Z;
November p. 1896, they had fallen to
$41 ,532, 711.22; November 6, 1897. they
had gone to SAC, 593, 54O.2S, an increase
over two years previous Of more than