The Kimball graphic. (Kimball, Brule County, Dakota [S.D.]) 1883-1905, 1900-12-01

such service the active, responsible and
honest business men of The country. The
the safely OF the depositors as will dis
sonsa&e improper leaning to- directors
woa not inturing the depositors by dis
sumption of the duties of rank director
snip by the active and responsible menu
Ioers OF the business community.
safety of Dep0sltors.
Primarily, the law should have In view
should be recognized that their safety is
as much endangered by the passage of a
from the service m by the existence OF
Ia law does not sufficiently restrict
the opportunity of dishonest directors to
It seems plain to the controller that
law upon this subject should make a
dissinct,on IN the nasnre Of the r-estrle.
swnlch Will. not involve as much of a delay
IN the making of loans to them ar in. the
making OF loans. to the executive officers
er opportunity and latitude for improper
methods in the use of trust unds. Z
The controller gives herewith a copy Of
congress by Hon. Marriott Brosius, chair.
man OF the committse on banking and
gress, first session., which has had his
careful consideration. and the passage of
which with some additions he earnestly
recommends. This bill has been drawn
loans to directors and officers with
WHAT'S believed to be a minimum of in
with the safety Of ofe Such fi't transa eens,s.ed II
properly recognizes the distinction in the
relations of directors to q bank and those
1t. viii be noted that the provision
made by this bill for the fixing OF a line
of credit for each director In advance re-
the. greater supervision proposed. After
such. q line of credit has been fixed by
me BOARD Of directors for an individual!
within that limit under the proposed law
than he is Mt present.
Proyisions of the Bill.
The text of this bill is printed in the
report. In substance, it provides that
no national bank shal loan to It's Off
GERS or employees until the proposition
for the loan shall Fave been submitted
In writing to the directors or executive
committee of the bank and approved
by the majority of them. A fne is
fixed for ~infractions of this section. It
provides hat at any regular meeting
the directors of a national bank may
fix by resolution the limit OF credit
which shall be extended to any direct
or. Within the limit of credit thus
fixed the executive officers, in their dis
erection, may loan to directors without
other action by the board. Unless the
limit of credit has been thus fixed an
application for a loan by a director
must be In writing, approved by two
other directors. Such loan may be
made by an executive officer. but must
be brought to the attention OF the
board of directors at its next meeting
for purposes of record. A penalty Is
provided for violation of this section.
The bill also contains the amendment
to section 5000. which, In his two for
mer reports, the controller recon-
mended relative to restriction upon the
general loans of bands,
Salaries for Examiners.
The controller repeats the recon-
mendatton made by his predecessors
that the present law should be SO
amended as to provide fixed salaries
for bank examiners. to be paid from a
fund collected from the banks, to take
the place of the fee system now In
force. The amount allowed an exam
liner Tor the examination of smaller
n Is not sufficient to compensate
him for the time necessary in many
cases for ar extended examination.
The present system encourages, to too
great an extent, superf1ciality in exam.
nations, and iEterferes greatly with
the roper and wise apportionment Of
time of examiners among the different
banks.
Among other recommendations, the
controller strongly urges laws reeu-
lating international and in~tercolontal
banking as distinguished from domestic
banking, II prints in an appendix the
result Of Investigations into banking
condttions in Porto Rico, Hawaii and
the Philippines.