Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1908-01-13
SWEEPING RANK REFORMS.

Banking reform promises to be The
most important topic Of the New York
legislature now in session.
II is said that the annual report of
the new banking superintendent. Clark
Williams. just submitted to the legis-
lature, has excited more comment
than even the message of Governor
Hughes. The first Recommendation in
the report is:
That the Superintendent of Banks
be given authority To direct the dis
continuance OF objectionable practices
on the part OF institutions under his
supervision, with an opportunity TO the
institution subjected 10 criticism to
show cause why the practices com
planned OF should not be discontinued.
and In the case OF n failure SO 10 snow
cause To the satisfaction of the super
iniendent, that he should either make
public the facts in the premises. or
assume charge OF the Institution on
the ground of its being in an unsafe
and unsound condition II such be the
case"
This would give the superintendent
the same authority over trust COM
panies, building and loan associations,
mortgage companies. and similar imam
cial corporations that he now has over
banks and individual bankers.
Other recommendations are:
THAT the present system OF extrav-
agant receiVerships for moneyed cor
porations be ended,
THAT bfiil1s and individual bankers
In cities "a more than 100000 popula-
ton shall have on hand at all times
rs per cent Of the aggregate OF their
deposits.
THAT il be made misdemeanor for
any officer or employe OF trust COM
pany 10 pay OF agree 10 pay certit-
cate of deposit in advance OF the time
liked at date OF issuance.
THAT the maximum OF any secured
loan 10 a single interest shall be g3
instead OF 40 per cent OF the capital
or surplus of bank or trust company.
THAT restrictions shall surround
syndicate on unaerwritten loans.
THAT no underwrtten loan shall
extend over period OF more than
one year"
In relation to what has been called
the pyramid banking" OF certain
companies the following modification
u the law is desired:
THAT Iaw. be enacted prohibiting
any corporation subject To the banking
law from making loans upon the stock
81 any other muneyed corporation
which loans IN the aggregate amount
shall exceed 10 per cent OF the pas
value Of the capital stock Of such other
'noneyed corporation
on this point the superintendent OK
plains thut the interdependenco OF n
nancial institutions - one Of the
causes for the failures recently oc-
curing II was found thar by the hy-
pothecauon OF the shares OF stock of
one corporation with another control
was held OF each by the use OF prac-
tically the same banking capital. This
uterdependence contributed 90 the
downfall of SIX OF the failed iDstitu-
lions. Conditions which came 10 light
clearly Indicated that the purpose OF
the control Of several OF these lnstltu-
lions was 20 enable an improper use
of their credit for the personal adyan-
mge of those holding such control
ON other points, the report is equally
comprehensive. ana recommends:
'rhat loans on real estate shall ba
restricted 10 20 per cent uf the assets
81 loanine agents in places OF more
than 10000 inhabitants and TO 10 per
cent IN places Of less population.
fphat all banks aud trust companies
be compelled 10 record all MORTGAGES
and assignments passing TO thom.
eThat loans upon second mort gages
be prohibited absolutely
That Kitchen cabinet directorship