New-York tribune., 1905-01-05
BANKS.

The whole number of State banks of deposit and
discount engaged in business On September So 1904
1S6, against 190 at the corresponding date in
1903 Their resources amounted TO SAB 4S7 2o7. which
date in 1903 The surplus and undivided profits Of
these institutions at the date were SS4O8 s7.
a gain during the year of s, ,366, ,6S4
The savings banks OF the State at the date of the
695 resort cegsd ~ Spa %6eh Is Fa
Of $5S.764.l .l6b over the previous year.
July l. 1904, was eighty. From July |. 1908 TO the
ensuing M JsnUary m there had been defrease OF m9Ge
gtitutlons which had been altogether recovered on
total resources Of these companies on the last
named date s.. .20S. $50. Their combined surplus
ssS sRq undivided profits at the same date were ''
The aggregate resources of all the institutions
subject to the Banking Department at the dates OF
last reports by them 81 9SS COZ 42 or $751;
2s3, S53 more than at the corresponding dates IN
Restrictive legislation guarding the rights of the
unsafe banking should be enacted and enforced.
The list of securities in which savings banks may
tended only with the greatest caution and upon the
most satisfactory evidence that the added LIle oI
not only for savings banks but also for trust funus
Special legislation enu1neratng the authorized in
establishing proper standards OF sa1ety' "a i
nal purpose OF benevolent institutions organized to
hold and invest the savings OF small dGpost0s anu az
the use Of such institutions should De denleu , 10 90
people Of wealth who are capable OF m9naglnt;
their affairs and VINO make ldIBS uepoSAC'
therein for investment purposes only
Investment associations and concerns should oe
brought more strictly under State control, ana
such concerns. whenever operating unaer uhSale
and vicious systems should be suppressed
Bank directors should be compelled 70 MAKE
periodical examinations Of the books or thelr m
stitutions and should be held responsible foT me
thoroughness and suf1ciency OF such examinations,
Building and loan associations shouId %ilou t,6e
ception be prohibited from loaning thelG their II IuhoS 9
upon second mortgage. The supeTlhtenueeIe e 9i 9
Ranks should be directed by law 70 examine a.
least once In every six months the DOORS anu
securities Of all banks and trust companies,
The attention Of the business world is aEal a. a.,
tracted TO the evil results Of unrestricted ioais o.
banking institutions favored individuals, so ina
the solvency OF the banks and the sa1ety OF oI On
rositors are made TO depend TO large eNIent 9pol
the financial integrity Of few borrowers, b oaI he
hanking requires that liabilities 10 the Dauk De
SistrJII1+ed in number and restricted In amount
The provisions of the National Bank aei tlnltng {
the total liabilities for money borrowed DS an! ~
person TO 10 per cent Of the amount OF me pad
rsnitaI stock OF the bank are to be corlilehued.
Irecommend that with reasonable exceptions as
70 the discount OF strictly business or secures @ SO
ns ner the similar provision in the state law pe
Pp1len5ed by fixing the amount to be loaned 70 tne
individual borrower at not more tnan ~ per cent
If tba csnitai stock actually paid in.