Daily inter mountain. [volume] (Butte, Mont.) 1881-1901, 1901-02-21
THAT STORE BILL
CULLEN'S MEASURE AS ADOPTED
BY THE SENATE.
BANKERS AND PAWNBR0KERS.
The Bill Authorizing Banks to Make
Loans on Personal Property
Recommended for Passage.

neCOuneuUVu 1OI 6dSSa6Vs
Special Correspondence Inter Mountain.
Henela, Feb. 2O.-Cullen's company
store bill has finally passed the senate
by vote of 16 to 6. There was no
Jack Hoy or johnny Simpson execu-
tion Of Apache war whoOps; no Greek
fire burned, and no band played But
a labor delegates labor delegate for
a. that, and happiness reigns supreme
among the opponents Of how to handy
the hoe and the pick They're gleeful
assemblage of men. for despite the fact
that the bill does not come UP to their
own standard on account of the exemp-
ton clauses relative to ranchers ana
others, they look on substitute as be-
ing better than nothing and unloose
the restless hinge of the jaw in jubila-
ton, while imbibing copiously-only
mineral water.
BANKS AND PAWNBRoKERS.
Senate bill No. 43 almost proved the
bette noir Of the assembly. Mr. Common
of Cascade saw dire affection. ahead IT
it were passed and Representative
Sander declared that it was nothing
less than a move to permit banks and
trust associations to go into business
in opposition to pawnbrokers
The bill was made a special order
in the house for 3 O'Clock this after
noon, and the wordy war it's considera-
ton excited proved a picnic TO the as
semblage of auditors that crowded the
rear of the excuse for hall. Mr.. Lam
Minis antipathy toward the hill was
lIoti he, QStQrdlv
while Mr.. Toole's words of praise
simply strung themselves in an end
less circle la Cicero.
When the bill first came UP for con-
sideration in committee of the Whole.
Representative Dixon rose and asked
permission of Chairman Swindlehurst
to read an explanation of the nature
of the bill which had been handed him
by State Bank Examiner John G. Mo-
rony. He was granted permission and
read the communication in full, which
was as follows:
Office of State Bank Examiner,
Helena, Mont, Feb. 20. 1901.
To the House of Representatives.
Seventh Legislative Assembly
Gentlemen: Senate bill No. 43, is
special order for this afternoon. This
is an amendment to present law des-
lgnated to clearly permit bank and
trust companies to do a general bank
Ing business, and to put them on the
same footing with national and private
banks.
This right was intended to be given
them by the present statute, but owing
to conflict and certain ambiguities
therein there is some question and
doubt. This doubt is sought to be, and
is. removed by senate bill No. 49,
The right to loan on personal Sc
curity is a perfectly proper provision.
The national banking law permits no
other sort of loans except in emergen-
cies arising whereby it becomes neces-
sary to take mortgages on realty to
protect loans already made on personal
or collateral security. The words per-
sonal security mean notes, commercial
paper and other bills discounted and
because of it's susceptibility to ready
conversion into cash is the very best
sort of bank loans.
Private banks, national banks and
other state banks loan on personal Sc
curity to the extent of two thirds O,
more of their loans and this privilege
should not be denied bank and trus,
companies.
tual changes Of section 604 First in line
80. the words 'or personal property wa.
| intended for the purpose of protecting
bank and trust companies where none,
had been loaned upon notes, whether
| Endorsed or not, so that the borrowe
when he was asked for payment coult
not say that the banking house had ex
| oeeded it's authority in loaning him mon
| ey. In subdivision eleven, the words, ST
collect receipt, and hold money on de
posit payable either on time or deman,
with or without interest, as may b.
agreed upon with the depostor." wer
! placed there for the purpose of allowin,
| banking houses formed under this &C
to receive money upon deposit eithe
upon open account or by issuing certifi
| Gates of deposit. The only other pro
| vision in this section which attempted t
| cover that power was the first subdivis
ion of section GOA, as follows: ITO recev
money in trust and operate the same a
! such rate of interest as may be obtaine
/ or agreed upon or along such interest a
may he agreed upon This subdiviso
would probably prohibit banking house
formed under this act from transact
general banking business. 1t was tn
original intention of the trainers of thi
act that these powers should be con
ferred. A careful examination of sectio