Los Angeles herald., 1909-12-12

the old commission were about $780,
600 per annum. He can appoint as
many examiners as may be neces-
sary to cover the field properly, pro-
viding he keeps within the $4,000
limit. He will, no doubt, have
twelve or more assistants and eX-
aminers. Provided with the means
to administer the duties of his Of
flee, and having an efficient law as
a basis, there will be no excuse for
careless or irregular administration.
Personal Interest Excluded
The law provides that the superin-
tendent shall employ chief deputy,
attorney and such clerks and exam
iners as he may need to discharge
in a proper manner the duties i'm
posed upon him, none of which ex-
aminers or clerks or attorneys shall
be interested in any bank in this
state as director stockholoer, Of
ficer or employe. nor shall they or
any of them become indebted di-
rectly or indirectly, either as bor-
rover, indorSer, surety or guar
antor, to any bank under his super
vision or subject to his control.
1t is becoming more and more the
fashion to compel directors TO direct
and know something about their
banks, and properly so. Dummy
directors are useless and oftentimes
dangerous.
We have now complete banking
act, with some imperfectiOns, of
course, and a few harsh provisions,
easily to be remedied by amend
ments at the proper time, but an
act which, on the whole, has the ap-
proval of those best qualified to
judge.
1t meets with and in some re-
spects has anticipated the recon-
mendations of the convention of
the state supervisors for better and
more uniform banking laws in all
the states. Instances are cited as
follows
instances Are Cited
First The absolute segregation OF
assets in case a departmental bust
ness is done, whether by trust COM
panies, state or national bahks-a
recommendation also strongly urged
by the savings bank section of the
American Bankers association, and
which it is believed will also be in
dorsed by the latter association.
Second. The. regulation of saw
ings departments and the invest
ment and segregation of savings de-
posits in the national banks, which
the national banking act should
provide for, or falling TO do so,
should prohibit.
Third. A uniform and complete
system of examination under the
control of one state superintendent
with sufficient means to appoint the
proper number of examiners, and to
pay the expenses of a well con-
Quoted department, thus affording
no excuse or justification for nom
enforcement of the law.
Fourth. The requirement of a
proper paid-in capital stock and re-
serve, in proportion to deposit liabil-
tiles.
Fifth. Provisions restricting the
use of depositors' funds by officers
and directors.
Sixth. The liquidation of banks
by the state banking department,
rather than by the proved expensive
method OF receiverships.
Seventh. Reasonable supervision
and examination Of assets by direc-
tors.
No doubt experience will demon
strate what changes or amendments
are advisable or needed. Recog-
nizing this fact, it is made the duty
of the superintendent to report each
year to the governor for submis-
sion to the next ensuing session of
the legislature ANY amendments to
the banking laws which, in his
Judgment, may be desirable" An
appointment has been made by the
governor to this office, highly sat
isfactory to all concerned, and it
is confidently believed that a COM
petent administration and good re-
suits will follow.