The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1897-02-26

proposition. to have private banks ex
amined by the state bank examiner
finally deciding against the proposition
and, should the house agree, the Owner
of a private bank can sit behind nj:
desk and give all inquirers the merry
ha ha.
1t came before the senate on the
proposition to insert the word ''corpor-
ate in the code. the committee having
so decided. Mr.. Nebeker of Tooele
chairman of the committee. declared
that although the committee had de-
clared in favor of the amendment, per-
sonaly he was opposed to it, as it eX-
empted private banking institutions
from the scrutiny of the state officia
whose duty it was to investigate. The
line read in the report of the code COM
mission. who shall examine into the
affairs of every bank" BY inserting
the word corporate" between the
words every and bank" private
banks We're excluded.
Harbour opposed the motion to in
sert because he wanted laws for the
protection Of the depositors in banks
ana to exclude private banks was
surely not in the interest of depositors.
Mr. Harbour believed that the public
was entitled to know how the affairs of
private banks stood. They were quasi
public institutions and their affairs
should be more or less public.
Mr.. Smoot favored the amendment.
It was not right to compel the inspec-
tion of private banks and make known
the amounts depositors had on deposit.
Grave injustice might he done by bust
ness competitions when rivals bust
ness standing WAS made known.
Mr.. Nebeker interpolated a remark
here that il was not proposed to have
the assessor or the examiner take the
individual deposits and make a list of
the same for publication; on the con-
tTary, such action was forbidden by
law.
Continuing. Mr.. Smoot asserted that
in Utah private banks were safest. or
had been in the past, and were more
secure than corporate institutions
formed for a similar purpose.
Like Bacons bank for instance" in
terjected Harbour.
Il call attention to the fact that the
trouble which caused the suspension of
the bank the senator alludes to began
when it was a corporate institution, ="
answered Senator Smoot.
Mr.. Snow argued in favor of bank
examiner with power to examine the
affairs of private banks. The public is
entitled to know how matters are go
ing II is a custom in other states and
in some the legislatures have gone so
far as to prohibit private banking. The
object of bank examination is not to
expose the deposits as intimated but TO
ascertain the condition of the bank and
make a statement for the benefit of
the public.
Mr.. Evans believed that it was not
Democratic TO have private banks ex-
amined, as proposed. The law might
just as Well provide for the examina-
ton of store or other place of bust
ness. Mention has been made of safe
guards. No man is compelled to de-
post in a private bank. He Will not
unless he believes it to be safe. If
the private bank fails. it is a matter
between 10 banker and the depositor.
The legislature might just as we'll leg
iSlate TO investigate the security on
proposed mortgage.
Mr.. Harbour called attention to the
fact that citizens of Weber. Davis and
Utah counties had, through him, pc
titioned fer laws protecting deposit
ors. Now it was proposed to take
away the last safeguard. The prOpo-
sition was entirely wrong.
Mr.. Hamer believed bank examiners
were like the fifth wheel on a wagon
useless. About the only thing they
EOull 90 MOulQ De 10 COUNT the CASH.
He did not believe in bank inspectors.
VIII the senator yield for a ques-
tion?" asked Harbour.
With pleasure" replied Hamer
"A Few daS-s ago the senator voted
for a bee inspector. VIII he explain
why he votes against a bank inspect
orr"
Because there is a difference be-
tween honey and money" was the re-
ply.
But if YOU want honey, you must
have money" retOrted Harbour, and
there the incident closed
, Mr.. Game favored the amendment
and so did Mrs. Cannon, the grounds
taken being about the same as those
advanced by preceding speakers.
Snow made a last appeal for the re-
lection OF the amendment.
I am informed, Mr.. President" said
Snow, ION what I consider reliable au-
thority, that not long ago the cashier
of a private bank was preparing to
show that the institution was solvent
when the reverse was the condition
The appearance of the bank examiner
caused a change. Many depositors were
saved who would have otherwise have
lost. This is but one instance. There
are others no doubt. The law should
not be amended and these banks out
beyond reach.
Harbour demanded a roll call and the
amendment prevailed-ayes, 10: nays,
6; absent .. Harbour, Snow, Johnson.
Whitaker, Nebeker and the president
voted 70.
Some debate was occasioned on the
report of the committee amending. the
law relating to interpretations. The
law provided that not less than one
third of the incorporators must be
residents oe Utah. The committee
struck ont that portion of the codes I,
report After some debate Mr.. s'aine |
submitted an amendment by which one
incorpora tOr must be a resident of the |
state, which was agreed to.
Banks in cities of $4,000 or more
must have an amount equal
to &c per cent of their savings deposits I
and immediate liabilities on hand at 1
all times in conformity with an amend
ment made 20 the law governing cor /
porations. This is double the amount /!
provided for by the code. The schedule I
for private banks was fixed as fol-
lows:
In cities of 5000 and not more than
10. COO population. $4,000; 10000 to 10000, |
s25 OG0. over 20.c00. $4,000.
This completed the important amend !
nents TO the code
CONSTITUTIONAL AMENDMENTS.
Three amendments 10 the constitu-
ton were proposed by the judiciary
committee in the form of joint resolu-
tons.
Senate joint resolution No pro-
poses to amend section %, article 6, to
-ead: THE enacting clause of every