Omaha daily bee., 1902-03-25

This class Of paper sometimes, and too
often, becomes a menace to the bank when
the officers have outside interests. and are
unable to resist the temptation to use the
banks funds for their private purposes, in
stead Of for the bank's beneht and best
interests.
Abuse Hard to Control.
Another abuse, and one perhaps hard to
control by the legislature, is a practice,
now prevalent to some extent. l regret to
say. Of avoiding rediscounts by the officers
OF banks conducting a brokerage business,
instead Of rediscounting paper in the usual
manner. / am Of the opinion that when a
bank gets or participates in the profits of
these transactions that II annot escape LA
bility, and the department is using every
effort to prevent this unwise and unsafe
practice.
1T is a dificult matter, the department
finds, to prevent excess loans. The reasons
given for the violation Of this section Of
the banking act are various, but every effort
is being made to have the banks keep within
the provision OF the law, as there Is no
question as to the wisdom Of this r%estric-
tion.
1T is a too common practice to carry less
than the legal cash reserve. While the de-
partment recognizes the danger from burg
larry, to which the banks in the smaller
towns particularly are subject, and It rea-
Lies the fact that currency can readily be
obtained on short notice from nearby re-
serve agents, yet It believes that the re-
quirement is not unreasonable as a rule.
"with the legal reserve, however, 1t is
different. The present requirement is too
low, and in my opinion should be increased.
/ do not believe a rs per cent reserve
would be excessive.
'I would further suggest consideration Of
a provision requiring the approval by the
state banking board Of reserve agents for
state banks, for at least a portion Of their
legal reserve"
Tracy Brothers Incorporate.
Articles OF Incorporation Of the Tracy
Bros. company Of omaha were recorded in
the secretary OF states office today. The
institution is capitalized for 5000, the
stock being held by Charles A. Tracy,
Thomas H. Tracy and E. Y. Tracy.
Adjutant General Colby has accepted the
resignation OF First Lieutenant Wilhelm
sen Of Company B, Second regiment, st.
Paul, and has ordered an election to fill
vacancy, the vote to be taken at the next
regular meeting Of the company. Change
Of residence prompted the resignation.
Two socialists OF Lincoln today began
mandamus proceedings In the district
court to compel City Clerk Pratt to place
the names of their nominees for city Of
fees on the official ballot for the forthcom-
ing election. They insist their candidates
were regularly chosen and that the city
clerk had no good reason sustaining the OBJ
~jections offered against them by the re-
publicans and fusionists. Hearing of the
case will be tomorrow morning.
Cameron Claims Coal discovery.
Unoficial notice has been received at
the governors office OF the discovery of
coal at Jackson, Neb., by ]. Cameron, a
farmer. 1t is said the deposit was found at
a depth OF seventy feet.
Next Tuesday evening the State Univer-
sity Young Mems Christian association
committeeman will hold a banquet in the
armory. New officers Of the association
have been chosen as follows: President.
]. d. Ringer; vice president, F. I. Will
liams; recording secretary, Robert Hill;
treasurer, Chancellor H. Phillips. Mr..
Hubbell was reelected general secretary
and the board OF control was continued in
ONCE.
Schools Fail Of License Money.