The Lee County journal. (Leesburg, Ga.) 1904-19??, 1908-02-28

year to make deposits In both Of them
Iii excess of the 100000 bond gwen
by each, On December goth the day
before The failure Of the Neal, the
state treasurer deposited in the Fourth
National bank over 1000 received as
taxes from the Southern railway. On
the same day he deposited in the Neal
bank $71, 652 These were only tenn
pcrary deposits. There was not a de-
pository in Georgia which could have
received these, large checks that day
without going way over the amount
of its bond to the state Continuing
Captain Park says:
Both banks were under a 100000
bond each, but volume /, paragraph 9S9
of the code, gave me authority to make
temporary deposits for a period Of ten
days, over and above amount Of the
bond. There was no depository in
Georgia that day that could have re-
ceived these large checks for taxes,
unless 1t had done SO over the amount
its bond specifies. had been check
Ing on these banks heavily every day,
and continued checking out that day,
and mailed amounts to $35, 44140, but
on the 21st, twenty-four hours after
these deposits, the Neal bank. failed,
an event Of deepest regret to me. Yet,
/ knew, under the law, that the money
had deposited was tho states and the
state had prior lien and was a pre-
ferred creditor, because the money was
contributed as taxes by. the people for
the support Of the state. These checks
were, Of course returned to me and
new ones substituted"
Tn the same connection the state
treasurer urges legislative action look
ing to an increased office force in the
treasury department with special ref
erence to keeping accounts between
the state and its repositories.
Neal Bank Failure.
AS to the Neal Bank failure Captain
Park says, in part:
THE second failure, viz, of che
Neal bank Of Atlanta, resulted largely
from promotions OF both foreign, and
local enterprises or syndicate. opera
lions ard was precipitated by an un-
looked-for panic and a run. These
runs are accompanied by spirit OF
frenzy and the most solvent banks
are endangered, sometimes ruined, by
them. The year 1907 has been the
most trying and anxious in the entire
history Of Georgia banks. They have
suffered most severe nd,yconstant
strain. #g ~
The advantage OF our new banking
bureau which went into operations
September LIST, was plainly shown, and
have had many letters and verbal
statements approving 1t, 1T is believed
that at least $15O0OO will be saved
from the assets Of the bank by acting
promptly under section IA Of the new
law AS state bank examiner, authors
lied by this section, | took immediate
charge and in three days, with the
advice Of the governor and attorney.
general and ait the request of the At !
lanta Clearing House association and
the officers of the falling bank, the
Neal bank was placed in the hands Of
great banking corporation to act
as receiver, under a low contract, half
the rate granted by the law and most
reasonable order OF the judge 4
Publicity Essential. j
Treasurer Park considers publicity
the greatest safeguard Of the prosper
ity of bank and says that all state
banks should be managed by full
boards OF directors and not by one
or two men. Many banks entrust their
entire business to a cashier, and give
no attention to the business. This is
wrong. boards Of directors should be
required to meet regularly, and to keep
close watch an the affairs Of the
bank in all departments.
important Changes Needed.
In concluding his report Captain
Park makes the following recommen-
dations:
Il recommend that all banks be re-
CURED to pay up the full amount Of
their authorized capital.
THAT mo banks be allowed 10 lend
money on their own capital stock. 1t
adds to their liabilities and. dinipishes
their assets
The compensatioh Of receivers of