Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1905-02-09
BANK EXAMINERS.

A bill before the Legislature pldNlub
private banks IN the same category rs
State and National banks, so far as Of
flcial examinations are concerned, has
caused great deal Of discussion. A
majority Of the committee to whom It
was referred reported adversely to The
measure. but the House adopted a NIL
norlty report, rendered by tho author OF
the bill, and so It is placed upon It's
passage. The provisions Of this pro-
posed enactment are az follows;
III. j. No, 3, by James A, Anderson.
An act 10 amend section 2iil Of the
Revised Statutes OF Utah, 1893, relating
to Bank Examiner.
"Be II enacted by the Legislature Of
tho State OF Utah:
Section !. That Section 2lil OF the
Revised Statutes Of Utah, 1898. be, and
the same Is hereby amended to read as
follows:
"The Governor by and with the con-
sent Of the Senate shall appoint suit
able person 10 be called the Bank Ex-
nminer who shall examine into the az
fairs OF every corporate and private
bank, loan, trust or guarantee assoc.a-
ton, building and loan association and
insurance company. domestic or for
eign, except foreign companies trans
acting business IN this State at least
once "A year, and oftener II the Secre-
tary OF State shall deem II necessary,
lie shall examine into the affairs Of for
eign companies at such times as the
Secretary OF State shall deem such ex-
animation necessary, and he shall per-
form such other duties as may be pre-
scrihed by tho state Board Of Exam
iners or by law"
We have endeavored TO learn what
valid objection there can be to this
proposition. The opposition to It APP
pears 10 be based upon the theory that
tho state should not interfere with or
pry into the affairs Of a private bust
ness concern, and further, that people
who make deposits in private banks do
not wish 10 have their personal imam.
cial standing or operations inquired IN
TO by public officials We are Of the
opinion, however, that there arc mo-
tlves other than these that prompt OBJ
iectlons TO tho passage ~ the bin, and
that these como rather from the pro-
prletors Of private banks, who fear an
increase Of taxation from the disclos-
ure Of the extent Of their transactions,
and also from the comparison that
would arise between their capltalIzatlo
and the extent and volume NJ those
transactions.
As to the FIRST objection; II appears
10 us that there * a wide difference
between requiring an inspection Of or
binary business affairs such as mercan-
tile. Industrial, manufacturing and 9th.
er private enterprises, and the carry
ing on OF banking businesses whitehall
though 20 some cXtent are private cons
Germs, yet by reason OF receiving In
trust the money Of numerous deposit
tors, become IN degree public nstl-
tutions, because the public entrust
them with the care o. their savings.
There IL % wide difference between pur-
chasing articles whether at wholesale
or retail and putting money Tor safety
in private bank This distinction. we
think, VIII be clearly seen by every
thinking individual who considers H.
As to the second objection. It would
apply equally to public as well as to
private banking concerns. People who
have deposits In State or National
banks might offer protest against Of
fetal inquiries into the amounts of
their deposits, just the same as II the
money had been placed I'M a private
bank. If Il Is improper in one case, II
Is improper also in The other II it Is
right for o bank examiner to nnd out
how much money has been placed on
deposit by individuals IN a public bank,
II must be equally right for him to
learn the same thing in a private bank.
However we do not understand that
the purpose Of the bin Is 60 make a
public matter OF peoples private NJ.
fairs I'm either Instance.
There have been a number Of fall
urcs OF private banks 'n Utah during
its brief history, aud It Is claimed that
the troubles, and losses, and IN some
cases ruin, that have been the conse-
uuence might have been largely avert
cd, IL the affairs OF those institutions
had been investigated by a bank ex-
aminer iu the same way that the nj.
fairs Of the public banks are nvcsti-
gated, We look at this matter from
the standpoint Of the public welfare,
People generally are unfamiliar with
the laws relating TO this subject and
nre not aware Of the exemption OF prl-
vato banks from the examination
which 1t is now proposed to require,
People who deposit their savings IN
such institutions, as well as those who
90 a regular banking business with
them, should receive that protection
from tho law which IS afforded by the