The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1908-02-12
SAFEGUARD BANKS
COMMISSIONER eNGEl
FILES FIRST REPORT
Yakima County Dispositions In State
Banks Are Shown to
BE Thrifty.

Abraham W. Engle, state bank
commissioner, has just filed with
Gov. Albert e. Mead his first annual
report covering the operation and
condition of state banks since June
-, the date upon which the state
banking department was organized.
The report contains the reports from
1872 state banks and three trust COM
panes not operating as banks. Since
the department was organized TWEEN
ty-four state banks, with a capital
of $3.50, 900, have been chartered
and authorized to commence the bust
ness of banking, and six others have
filed their articles of incorporation
and are pending authorization. Nine
state banks have left the jurisdiction
of the department, one has disincor-
porated and nine have become ma
tional banks. Twenty-six banks have
increased their paid up capital SPOT
.014.07.
The total individual deposits Of
the state banks as shown by the re-
port, were $75,321,115.43, distrib-
uted in the central Washington
counties as follows:
Benton banks, $271 .S07.24.
Klickitat-3 banks. $293,17999.
Kitttas-4 banks, S. 1853, 1859.
Yakima banks, $SS7,32S.52.
Savings Deposits.
The total savings deposits held by
the state banks were $21,320, 9S9.24.
distributed as follows in central
Washington:
Benton-$2, 0G9.S5.
Kittitas-S
Yakima-$ 4,709.54.
Two suggestions for further legis-
lation covering savings banks and
trust companies are made by Mr.. En-
gle in his report. He recommends
that organizations which continue
to transact a general banking bust
ness should not assume the liabili-
ties incident to the operation of
trust company, and that trust COM
pany acting as such should not en-
gage in the banking business. He
points out that the anticipation of
future demand for a corporate body
with ample capitol to act in the ca
pacity of fiscal agent or guardian,
is responsible for the organization
of comparatively large number of
institutions clothed with trust power,
and that with three exceptions these
organizations have engaged in gen.
eral banking business. most of them
operating both commercial and saw
ings departments.
Safeguards for Savings.
Mr.. Engle recommends that there
should be laws surrounding savings
deposits with explicit and effective
safeguards. On this point he says:
IF commercial banks are to contin-
ue to operate savings departments,
it seems desirable that the same
should be separated from the general
business of the bank, even to the in
vestment of the funds. and that the
law shall prescribe the character of
the securities in which they may be
invested. At later date I shall take
the liberty to outline for your con-
sideration suggestions of amendments
pertaining to the foregoing comments
and directed also to other portions
of the banking laws"
During the year but one bank was
taken over by the department. name
ly, the Citizens State Bank of Brews-
ter This bank is still in the hands
of the recover Mr.. Engle attributes
the excellent showing of the state
banks to the effectiveness of the new
banking law and the willingness with
which bankers have conformed with
it's provisions and the other require
ments of the department.
The total expenses of the depart
ment since its organization were $5,-
491.06 and the receipts were So
519.1S.
Suffering and Dollars Saved.