The Birmingham age-herald., 1903-06-12
STATE BANKING
 LAWS ARE NEEDED Failure of BesSemer Concern Stirs Up a Discussion SHOULD HAVE EXAMINERS At Present There Is Practically No Law That Deals With State and
 Private Ranks-People
 Need Protection.
SHOULD HAVE EXAMINERS

The sudden failure of the Bessemer Savings bank and the closing of the doors of the Bank of Commerce have aroused renewed interest among the people of Birmingham and of Jefferson county in the state banking laws, and what steps should be taken to assure the passage by the next legislature Of measures that will protect not only the individuals doing business with state and private banks, but also will protect other banks.
 At the present time there Is practically no law that deals with state and private banks An individual can get his char ] ter and start bank in the state of Ala bama without being responsible to any one. There are no state bank examiners and there is no official to whom state and private banks must report.
 Constitutional Provision.
 In the new constitution, however, there is a clause providing for the appointment of bank examiners when the new state 1 legislature shall have adopted a measure requiring 1t. A bank bill was drafted and presented to the last legislature, but it was too late for the session and 1t is now 1 in the hands of the committee on bank l ing and insurance.
 Another bill Is being drafted at present and 1t is understood that Senator J. R. l Norwood is in charge of the work.
 There Is unanimity of opinion among bankers of the state in favor of string ent banking laws It Is known that the provision In the new constitution was in- serted through the influence of the bank l ing interests, and the bill now being drafted has their cordial and hearty sup port
 Birmingham bankers all favor the pro- position. Most of them were seen yes terday and representatives of the various banks of the city expressed themselves as 1 follows:
 Bankers Discuss the Law. O. B. Mccormack, president American Trust and Savings bank: That bankers l throughout the state favor new banking 1 laws is shown by the fact that state and private bankers are approving and assisting In the work of drafting new laws. The new bill will provide for the appointment by the governor of board of examiners. These examiners will visit the banks of the state at least five times a year. Banks will also be required to 1 keep a certain percentage of deposits on hand.
 W. P. P.G. Harding, president First Ma l tional bank: The last constitutional con- vention passed an act making 1t manda- 1 tory on the state legislature to provide for the examination of state and private banks by board of examiners. Of course 1t would not affect us, since national | banks are periodically investigated by the Federal government anyway I hope the 1 legislature will take the matter up soon after it assemblies, however, and pass 1 some banking laws that will put Ala bama on an equal footing with Tennes- l nfh fafo which have given banking affairs much attention.
 | Leo K. Steiner, president Steiner Bros: 1 Bank examiners will not make a. dishon- 1 est man honest, and if man is so mind- ed he can steal whole lot of mony un- | der any circumstances. Bank examiners | are a great protection, however and I think the state ought to have them. They are a protection not only to individuals but to the banks.
 E. F. Enslen, cashier Jefferson County | Savings bank: I am heartily in favor of a state banking law and I think the bill now being drafted will cover the case. A good law, one that will offer protection to bankers and individuals alike, should be enacted and I think it will be during the next session of the legislature.
 Absolutely Necessary. J. B. Cobbs, president Alabama Ma tional bank: There is just as much req son to examine banks as to examine the affairs of the county or state treasurer. Banks have money in their possession that belongs to the public, and the pub lie deserves to know what is being done with that money Bankers are practically a unit in favoring measure providing for state bank examiners. We have con tinually had the matter up for discus- sion before the meetings of the Bankers association, and 1t has always been warmly supported by the members. We as a national bank must submit to an examination of our affairs at any time the federal examiner may come. But we are glad to do it. Some of the Birming- ham banks outside of the national insti- tutions voluntarily publish a statement of their condition periodically This cer- tainly shows the right spirit, and a matter of fact I cannot see why any banker should object to having the condi-