The Hood River glacier. (Hood River, Or.) 1889-1933, 1907-01-31
IN INTEREST OF LE-
CLIMATE BANKING

For the purpose of protecting banl
depositors and legitimate banking in
stitutions aud preventing disastrou
failures and financial crashes, bill
framed by the State Bankers associa
tion and for sarded to Presiden
Haines OF the state senate Will be in
troduced during the present SO ssioI
OF the legidla .ure.
The remedy against unreliable bank
ing concerns and against schemes oil
irresponsible speculators is believed tt
be found in state board of banB
commissioners and a state bank exam.
iner. The proposed act provides fol
their appointment, the governor, sec.
retaIy of state and state treasurer Ia
constitute the board, with power ia
appoint an examiner at salary OF
$1,000 year.
An article OF the bill touching par
ticularly upon the security of bank
ing institutions is that which prohjb-
It's any officer or employe of bank
ing institution from borrowing any of
the funds of the bank upon his own
note or obligation without first hay
ing obtained the approval of major
ity OF the bosrd OF directors of the
bank, or of an executive board or dis
counting committee selected by ma
jority of the board of directors. In
case any OF the directors knowingly
premit or approves such loan IN dis
honest manner, every one who as
sents shall be liable in his PERSONAL
and individuI capacity for all dam
afai
Another III oFtant section Of the
bill is that W ca provides that every
bank operati z in community shall
have on hand It all times in actual
cash not les than Is per cent OF its
demand liabilities and 10 pei cent of
it's time deposits. Every bank doing
business in city of more than 80, 600
inhabitants shall have on hand 25 per
cent of its demand liabilities and 10
per cent of It's time deposits, thus
preventing, to a great extent, the
danger resulting from run.
The bank examiner Is to pay occas-
ional visits to the banks and investi-
gate the reports of liabilities and as
sets in every detail. Such reports
shall also be published in some news
paper Of general circulation for the
protection of the general public. A
regular round of all the banks shall
be made ut least once year by the
examiner, when be once shall have
access to every book and record in
tn institution. penalty Is provid
ed, however, against the examiner
disclosing any information thus
gained excepting in the regular course
provided by tho bill.
Foreign banks are to be governed
In similar manner to the home insti-
tutions. In case of apparent danger
OF bank being unsafe it shall be the
duty of the examiner to so inform the
secretary of state, who will at once
inform the board of bank commission
ers, who in turn may take out the
necessary steps to straighten out tho
affairs of the insolvent concern an dat
tend to the prosecution of those to
blame for its condition.
As a prosecution against concerns
operating under the guise of banks or
trust company, the bill pIescIibes
that no person, firm or corporation, |
except national banks, shall carry on
a banking business. ecXept on compli |
ance with the aoG. "No person, firm
or corpora ion shall use either or any !
of the terms, bank, banker, bank
ers, banking house or trust com
pany, unless he, they or it shall have
first fully complied with all the pro-
visions of the act -
At least 50 per cent of the capital of
every corporation engaging in the
banking business shall be paid n be-
fore the corporation shall be author
lied to commence business The re
shail be paid in within siH
Of the date of its organization.