New-York tribune., 1908-03-16
B4NKING BILLS SUMMARY.
Giuen Ont by State Banking Depart
ment at AlbanY.

ment at Albdny.
Albany March 15.-The report of the supern-
tendent of Banks. transmitted to the Legislature
on the first day of its session. contained number
of suggestions for the amendment of the banking
law Bills covering these recommendations have
stree been drawn and introduced in both Senate
and Assembly committee bills. The State Bank
ing Department to-day gave out a summary of
these bills, as follows
.o Eirst,-Increasing - cash reserve to be main
haitian from is per cent to 25 per cent. 15
per cent to ,9 be Carried in vault and 10 per cent
on deposit with reserve agent. In other borOughS
of greater New York the required reserve will
6ed2i@ De d2@ per cent In vault and 21. per cent on
state the reserve requirement. is increased from
agent to per cent cash in vault and 9 per cent
with reserve agent.
hsd RoToupb IN cash o IN vault by trust in the
cash vault and &c per cent With reserve deposi-
tary Of which amount > per cent may be in
by law. In other boroughs of greater New York
the reserve requirement is 10 per cent cash in
ESewheTe sew ere, in the state cent in vault and
cet W'b be m Of 6ond Mch
estimating the reserve for trust companies trust
time d~9sits, represented by certificates with a
fd nents he ne date not PAYABLE within thirty dats
be ,r".3 aGc9mqiated I e before February l. 1909.
bank TO make oath of office and file the same
with the Superintendent of Banks Heretofore
no oath has been required of savings bank trus-
Fourth-Permitting savings bank to borrow
jority vote of its board and with approval of
@ @le[est or depos1torS, as 1t will avoid sacrifice of
value by forced sale of securities in time of
,apts PtfthhmProyiding he that securities of savings
yai1e On tle DOORS at thelr Investment
ported "-N " ~
Sixth--Requiring amortization of securities in
| q hxrlS frnr1
which dividends declared. This amortization
Or on ali seoare owned Of bP sHng
banks banks SO as 10 bring them to par at maturity,
Sexenth-Creating the office of third deputy sal
in the New Yord ss b may be
anns b proper organization at the branch office in
OF the panklng power Of the state is concentrated
Elghth-Providing for meeting of directors OF
In4ndh: 3 at which meeting designated officer shall
npnhs 10 @ eaGh director written statement of all
count and loan of more than $1,000 made since the
such meeting. describing the collateral at the date
of the meeting at which such statement is sub
gate Of OF loans ? to a single interest whose liability
fed copy of such statement. together With a list
OF the directors present at the meeting, is filed with
the facts stated therein.
Nnth-Reducing the maximum of any secured
haitian 40 per of the ca pitai and surplus
TO % per cent. Prohibiting any underwritten loan
OF the purchase of these securities collateral the
OF hs I'll HSh 1 at esS east Of P
character II It's term exceeds the period of one
per cent of the capital and surplus Prohibiting
! loaning upon second mortgages If the amount OF
the first and second mortgages exceeds two-thirds
OF the value OF the property or if the first mort
OIL the banh or trust company making the loan
Limiting the aggregate real estate loans for banks
. per cent in other places Prohibiting the de-
posting of funds of a bank or trust company with
of the directors exclusive of any director who is
officer director or trustee of the depository SO
designated Prohibiting loans by the stock of
mOneyed corporations If the total loans secured
exceed in the aggregate 10 per cent of the par
value the capitatl stock of such other corpora
ton. Prohibiting building and loan associations
from uong a second mortgage business.
Tenth--Permtting safe deposit companies to
open branches upon the approval of the Superin-
Eleyenth-,Prohibiting branches of banks .un,,
less there be in addition III, to the I capital required
up to SX months T tms is given to
given authority in his discretion to withhold au-
panies unless there be in addition to the capital
GseR eqane rG IN 6 SIX e onS & f0
is given to make the adjustment The superir-
Thirteenth-Including. under Section 5e3 of the
Penal Code; providing limitations on foreign cor
Poratons. loan or investment corporations. build
or cooperative savings and loan associations
Fourteenth--Amendng the Penal Code TO make
II q utSueulednoi loT any oHcer or a banking
corporation to maintain deposit of moneys
belonging to the corporation with another
moneyed corporation with the understanding or
agreement that loan advance is to be made
In return therefor Also 1t is made misde-
meanor for officer to Intentionally conceal
from directors transactions of the corporation
required be reported. is also made a
misdemeanor for officer employe Of a trust
company by agreement expressed or implied. to
alter the terms of time certificates deposit
Fifteenth-Providng for publication Of notice of
intention TO organize bank and requiring the su-
perintendent to determine the character and gen
eral fitness of the incorporators and whether pub
lie convenience and advantage Will he promoted by
may grant withhold authorization.
Sixteenth-Reduring a director of a bank upon
reelection to include in his oath of Office the dec
laratiou that the stock necessary to qualify him
a director has hot been hypothecated during his
previous
amortization of securities held as capital invest,
ment of Eust companies. Prohibiting trust com
panieS from owning stocks Of other Inoneyed cor
poTataionS. the par value OF which in excess of 10
per cent of the capital of such other moneyed cor
poratons This does not apply to the stock of sale
deposit companies.
Eghteenth-ProhibitinG mercantile establish
ments from doing a general deposit business
Nincteenth-Givfng the superintendent authority
to correct unsafe practices. extending power TO
possession under certain conditions TO all cor
pOrations which the banking law Is applicable
The for the dissolution OF n corporation are
distinctly enumerated, and the proceedings for the
quida ton Of failed institutions fully set forth
the Superintendent of Banks being given prac-
tically the power 10 nquidate affairs of
institution under his supervision AS the C'on-
trollcr of the Currency has under the national
banking act This measure enables more adequate
SUPERVISION and should afford expert admiuistra-
ton of the affairs Of failed institutions enabling
prompt resumption when possible ard reducing the