New-York tribune., 1908-01-25
TO CHANGE BANK LAW
Bill Drascn to Garry Out Sugges'
tions of Clark Williams.

hi will be submitted the Legislature at
albany next week providing for radical changes in
.be state banking system the lines suggested by
Clark Williams. State Superintendent Of Banks.
one provision calls for strict limitations on all
loans The creation Of chains Of banks. as many
are now constituted. viii be prohibited, and bank
officials viii be required report TO the directors
f,I information regarding all loans under penalty
Of conviction on the charge OF misdemeanor. New
York City bank reserves will be increased from Is
70 . Per cent and New York City trust company
reserves from 10 10 Is per cent
The bin VII provide for a system OF receiver
ships similar that Of the federal government The
state Superintendent of Banks viii have authority
10 take charge OF any institution which his ex-
arriuers find be in need Of a receiver.
Authority VIII be given 10 the State Superintend-
ent Of Banks 20 order the discontnuance Of objec-
tionable practices and the maximum Of any secured
loan 10 Z single interest viii be placed at 25 per
cent instead OF 40 per cent, OF the capital and
plus Of q bank trust company. All underwritten
loans 10 be limited 20 the period Of year.
Provision VII be made for tie prevention Of loan
ting more than - per Of the capital stock and
surplus OF bank trust company upon the Sc
curity OF e single corporation, even though the
loan be undeTwrtten and several persons are sepa-
rateIy obligated unless they shall have paid on
account Of the purchase Of such securities an
amount in cash equivalent 10 at least p per cent
Of the several amounts for which they remain
obligated
The bu viii prohibit any bank or trust company
from making loans upon the stock OF any other
rnoneyed corporation exceeding 10 per cent OF the
Ta- value Of the latter corporations capital stock
TIE amount Of loans which q state bank may make
upon real estate security VIII be limited TO - per
cent Of the total assets OF such bank in places OF
not more than ten thousand inhabitants, ana 10 ~
re- cent il other places All loans second mort
cages viii be prohibited and trust companies VIII
not be allowed TO hold more than 10 per cent OF
the outstanding stock of another moneyed cor
pora1ion- -
Reserves are fixed as follows Banks IN Ne"
York City must have on hand reserve o. al 4e@'
- per cent of their deposits All OF this may 1l
al least three-ffths must consist OF ellleI ,s No.
q notes or bills issued by any lawfully oTG%Aiil%e
banking association and the balance must 0o4s
IF moneys on deposit subject TO can. baIihS - -
"a. IF New York CITY must have on hallo a - -
- osr4 oe their deDCsJs. All may anu a. 49,
---a4-5s ,7,rs+ consist Of money ana me De-A
80 consist Of money deposit SUBJECT u Oi'
-. ,o-,,ra,ias in New York City must nave ="
- = -, u rer cent Of their deposits anu I-e
- - consist Of money Trust companies
,,,+si5A New York City must nave AV PEI cent u
,b.ir 6enasts on hand and al least II per ctI'
,r,sr consist Of money and the balance De on oe-
-. s7,h5ec- 70 call. Trust companies OUTSIDE OF
w York city now have reserve OF 10 Per cent
. = ,e-- Of which must be cash and per cent
n bonds ~,
ss,-5rFs hanks viii not be affected by the bill
The -o+al resources OF the institutions affected
-, +be r ere g 4S Gaoe0o one-ffth OF the BANKING
power q The country.