The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1904-06-18

| a lack Of system as there is in our
| statute books a deplorable absence of
| anything that rises to the dignity of a
bank code.
In the state constitution. concealed
| IN the chapter on corporations. there
| may be found some scanty reference to
banks. One section provides that for
elgn corporations may not transact
| business within the state under more
favorable conditions than local banks.
| Another prohibits individuals or ASSOC
cations from putting in circulation as
money anything but lawful money of
| the United States. Still another section
| imposes a double liability on bank
stockholders and makes an official per-
sonally liable if he assents to the re-
ceipt of deposits when he knows his
bank is in a failing condition. None
OF the above healthy provisions have as
yet been made effective by appropri-
ate legislation. Some of them how
ever are to be found in the territorial
laws.
On our statute books about the only
legislation on the subject of banking
discOverable is an act on corporations
based in territorial days which pro-
vldes that banks incorporated under
1t shall file report of condition with
the secretary of state on the first
Monday Of June each year. No publi-
cation of the statements is REQUIRED.
although publicity is now regarded as
one of the effective remedies for the
trust evil and for irregularities that
occasionally creep into corporation
management. But even publicity
without eXamina ton is shown by ex-
perlence to be a farce. There is in our
state no officer as bank examiner
Bank statements of condition are
pigeon hOled" in the office of the sec
rotary of state, there to lie indefinitely
deeply buried from human eyes"
No report whatever is required from
the private banker; indeed, he seems to
nave escaped entirely the attention
of the law makers. He makes no dec
laratiOn of capital. The public has no
means of knowing the amount of his
capital. and if any, whether it is in
tangible property. He has only to
rent a banking room, equip it with
counter safe and with a fetching sign
upon the window, inviting deposits at
an attractive rate of interest, begin a
career, the outcome of which cannot
be foretold. In recent years Wash
ington has been fortunate in the high
character of her state and private
bankers. There was a time. however,
following the boom days, when this
happy condition did not prevail. Many
Adventures fOcked to the state. some
of whom embarked in the banking
business our lax banking law afford
ing them great opportunities. They
used the deposits to exploit all kinds
of wildcat enterprises and disaster
overlook both banker and depositor, as
is usual when banks are organized to
play upon deposits. This is crimi-
nal and should be prohibited by law
A good banker will not turn to his
own advantage the power his position
gives him and a bad one should not
be permitted to do so.
No class of banks was exempt in the
days of the panic, but it may be safe
ly claimed that the percentage of fail
ure was greatest in those not under
government supervision
1 recall one instance illustrating the
methods by which some of the enter
| prising Adventures above referred to
| acquired control of banks. One of these
| appeared in a small town in the
| northern part of the state and entered
| for the purchase of his bank. Having
| learned that the sum total of the de-
| pOsits in the vault exceeded the price
asked, ne closed the deal, made pay
ment by a draft on a New York bank,
entered into possession and promptly
shipped by express from the coin re-
| serve sufficient money to protect his
| draft After a brief and inglOrious
| career he vanished from the scene,
leaving behind the usual concourse of
sOrroWing creditors.
In another and larger town a private
bank in the same section, was es-
tablished and conducted by one of the
city's founders, a public spirited and
enterprising man, foremost in all char
liable work and a liberal contributor to
all projects necessary to give his city
growth. He built business blocks, en-
gagged extensively in manufacturing
and was pointed to with pride by his
fellow citizens.
y. His bank went down during the
panic days and the mourning deposit