The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1907-01-04
Washington Association to Make
-Oemaad Of Next Legislature
THEY also WANT nH REGULATIONS
DECLARE THAT PRESENT LAWS
FAVOR FOREIGN HOUSES nv
LOAN MATTERS.

banks Will De PROVIDED IOr ana tne Oh
flee of state bank commissioner will
be created if an act prepared by the
executive committee of the Washing
ton State Bankers Association is pas
sed at the coming session of the
legislature Copies of a measure
framed by the committee have been
sent to all members of the association.
Provision is made in the act for the
liquidation of the affairs of bank in
case the capital stock has been i'm
paired or the business conducted in
such a manner as to make it's continu-
ance a menace to it's depositors, or
where false statements have been is
sued The bank examiner shall draw
a salary of $500 and receive $4,000
per annum for clerk hire, etc. He
must have been engaged in the bank
ing business five years before appoint
ment
Favor is shown foreign banking cor
porations in the section providing re-
striction as to the amount of money to
be loaned to single individual or
business corporation, which is fixed at
25 per cent. National banks are al
lowed by law to loan but 10 per cent
of capital, surplus and undivided pro-
fits. State and other banking insti-
tutiOns, other than national, incOrpo-
rated in this italization to permit OF
extremely large loans with the limit
fixed in the new bill, and the big
wrong division foreign institutions
with heavy capitalization are favored
to that extent.
This question caused the hottest
kind of a fight during the legislative
session of 1903, when the state and
national banks sought to have a bill
passed limiting the amount so loaned
to 10 per cent to conform to the re-
quirements of the federal statutes.
The section of the proposed new law
covering the matter is as follows:
''Sec. %. The total liability to any
bank of any person or persons, or OF
any company, corporation or firm, for
money loaned, including in the liability
of the company or firm, the liabilities
of the several members thereof, eX-
cept special partners, shall at no time
exceed twenty-five (25) per cent of the
capital, surplus and undivided profits
of such bank; but the discount OF bills
of exchange drawn in good faith
against actual existing values, and the
discount of commercial or business
paper actually owned by the persons
negotiating the same shall not be con-
sidered as money borrowed: Provid-
ed, however that the foregoing limita-
tions shall not apply to loans made
on warehouse receipts and bills of
lading, representing actual value
How Bank Can Close Affairs.
Means are provided for the winding
up of the affairs of bank in the fol-
lowing section:
Sec. 49, If the bank commissioner,
upon examination of the affairs of any
bank governed by this act, shall find
that such bank has been guilty of vio-
lating it's charter or the provisions OF
this act, or is conducting its business
in an unsafe manner, he shall, by an
order addressed to the bank so offend
ing, direct discOntinuance of such H.
legal or unsafe practices, and if such
bank shall refuse or neglect to comply
with such order within a period of
thirty days, he may Immediately apply
to the superior court of the county in
which such bank has it's principal
place of business, for the appointment
of a receiver of such bank, who. if he
be appointed, shall proceed to admins
ter the assets of the bank in accord
ance with law"