The Yale expositor., 1905-03-17
State Supervision of Banks

! IN the Meantlmc. his Dill mas puSsSu
the senate.
State Supervision of Banks
Another attempt will be made this
session to bring private banks under
state supervision. This object has
been sought at previous sessions, but
without success. 1t is said the pros
! spects are much brighter this year.
| While Banking Commissioner Moore
! favors supervision of these institu-
! tions, he says he will make no move
! in the direction indicated without first
| consulting the banking interests of the
! state, at the same tine expressing the
emphatic opinion that it is high time
that steps were taken toward eifecting
"a reasonable, conservative super
vision of private financial institu-
| tiops."
Occurrences OF banking circles in De
troit during the past three years to
which public attention has been gen
orally drawn and which resulted in
the wrecking Of the Sity Savings bank.
have induced Representative Lord Of
that city to introduce three bills pro-
posing amendments to the state bank
! ing law designed to prevent II rccur-
renee Of the situation referred to.
Two Examinations Year.
These measures provide for two eX-
aminations each year of all state
banks in reserve cities as required by
the existing statute. The bill makes
it mandatory for the commissioner TO
make these two examinations. At pres
ent the law provides q fine Of 500 per
day for each days neglect to file an
nual reports. This penalty is so Sc
we're as to make the law imperative.
Representative Lord proposes to re-
duce this penalty TO So per day, thus
making it reasonable and effective.
The third bill proposes to prohibit
banks from preferring depositors. pro
hibits the present practice Of borrow
ing by banks on their certificates of
deposits. gives the banking commits
sioner authority to compel any bank to
repay loan when the bank is bor-
rowing too heavily for the purpose of
reloaning, requires the destruction of
certificates Of deposit and the issuing
of new certificates each time the pay
ment Of n certificate is made. and pro
hibits n bank from pTedging collateral
as security for loan in excess Of 80
per cent more than the amount Of the
loan.
Heavy Appropriation.
Among the heaviest appropriation
asked for this year il that desired by
the agricultural college. The law
provides n tax which yields approx
mately 100000 per year for main
tenance in addition to the $4,000 al
lotted by the federal government each
year on account Of the military de
partment at the college. Aside from
this the state board Of agriculture will
ask for 100000 for new dormitory
to take the place Of Wells hall. which
was destroyed by fire n couple Of
weeks ago, $4,000 for an engineer
ing building to meet the rapidly grow
ing demands made upon the mechan-
ical department, 100000 for library
and auditorium, $4,000 for new barns
and $4,000 for q botanical laboratory
AS indicated last week, the Doherty
bill recognizing the state board of
health has become q law, having
passed both houses by an overwhelm-
ing vote and been given immediate eff
feet. The work of reorganization is
already underway. There is little
doubt that DIR. Frank w Subway.
at this time president Of the state par
don board. will be appointed secretary
of the health board to succeed Or.
Henry II. Baker. who has occupied
that position continuously for nearly
thirty-five years.
Linsley's Flag Bill.
Although the final vote was de.
cidedly onesided. there was quite
cotillion in the senate n few days ago
over Senator Linsley's hill requiring
that the United States flag he dis
played over each school house In the
state The Objectionable features Of
the bill were those which stipulated
the exact size of the flag to be dis
played and which deprives school dis
tricts which fail 70 display the stars
and stripes regularly of their share of
the primary school fund. 1t was ar
gued by the opponents Of the measure
that the districts would be at the
mercy Of teachers whose duty it IS to
see that the flag is displayed each
day, and IT, as was said TO he quite
probable such teachers wearied with
well doing and failed to run the flag
up to the top of the staff each day. the
aistrict would be heavily penallzed for
such neglect. II was also contended
that the provisioa fixing the size OF the
flag would make 1t necessary for many
districts to discard flags now in use
and purchase new ones The bill was
passed nevertheless, but there are
those who believe II will experience
hard shedding In the house.