The Montgomery advertiser., 1903-09-23
.ttssll't;t I { .,,a! ,a!gl!,t,ss:7 gl!,t,
BANK EXAMINATION BILL.
A Strong Appeal from High Author
 ity for Its Passage.

To the Editor of The Advertiser: By your kindness l take this method | or making an appeal to the House Of Rep | resentatives to pass the bill for the EX- amina ton and Regulation of the Business of Banking in Alabama. We who are in the business and who feel the need of legislation for the mutual protection of the banks and their depositors, had hoped the bill would pass without opposition.
 There are more than a hundred banks
 in Alabama. uncontrolled by d single line Of legal restriction. and over $l2.00O,O00 of deposits in the absolute and unguarded Coatrol of State and private bankers. The relation of the bank to it's depoSitorS is
 one of the highest trust. and no trustee
 should be allowed to do as he pleases
 with the money or estate of others in his
 So far as any law is concerned, Ala
 bama is the most inviting field in this
 country for the wild cat bank and the
 1t has neen thoroughly worked in some sections and every locality is liable to the same process.
 It is surely to the interest of the State State banks. to make them safe and sound. and to promote their usefulness
 snd their numbers. The disgraceful fail
 tues of the recent past are q great shock to public confidence in banks and sad | loss to the people, and we can see now
 that they could have been prevented by | law no more rigid than the one under considerable
 1 The State. the counties and the cities | in get no license taxes out or National | [ dnKs. The National bank can not lend
 e. real estate mortgages. For these two | reasons If for no others self interest calls
 for legislative help to put the State bank
 on the highest possible plane of sound 1 business relations with the people. The bill under consideration is exceed
 ingiy simple, It provides for the eXami- nation of the banks for statements ol resources and liabilities on call of the treasurer, for a cash reserve. for making good impaired capital, for writing off dead and worthless paper and for so i limiting loans that officers cannot pro- ceed with large transactions without that consultation with the directors and their approval which prudent banking de- mandS.
 me that any opposition has developed to that clause in the bill which provides for the publication of bank statements in the newspapers of the localities concern ed, Every banker recoonizes that the publication of their statements by the National banks under the National bank ing law, Is the most important restraint
 imposed upon those banks, and the most
 valuable protection provided for depO5i-
 tors. Banks are dependent for theur sue
 the public is their sensitive point No Ie-
 striCtIOn can be imposed upon them 50
 strong and effective to make them care
 iul, prudent and honest, as a rcqure- ment that they let the public know from time to time what is their real condl- l ton. The most effective method of DanK | regulation yet devised is to empower some l officer to call for statements on any past
 day he may select and to require these | statements to be published. The restraint | on the banker lies in the knowledge that | Il may be called at any time to make d | showing.
 | I am informed that the Senate bill l while requiring the Treasurer to call for