The Birmingham age-herald., 1909-07-11
BANK EXAMINERS
 10 BE INCREASED Georgia Legislature Will Guar d the State Banks CHARGES TO BE GREATER State Bank Examiner Is To Have Five Assistants Instead of Three
 and Their Salaries Will
 Be Raised.
CHARGES TO BE GREATER

Atlanta, July .-(special)-New and in- teresting legislation with reference to state banks is proposed in a bill just introduced in the senate by Senator Ruth-' erford and approved, it Is stated, by the bankers of the state generally.
 This measure proposes to amend the law of August 2s 1907. first with ref erence to bank examinations, and next with regard to the law governing trans- actions of banks, with view to more thoroughly protecting patrons of banks, and protecting the banks themselves against the competition of unlawful en- terprises of this sort.
 Under the present law the state bank examiner with three assistants is not able to examine each bank twice a year as the law requires. The Rutherford bill pro- poses to increase the number of assist ants to five, and make the semi-annual examinations a positive requirement.. In order to meet the additional expense the charges for examination which the banks voluntarily pay, are to be increased in accordance with the amount of capitaliza- ton. The present charges run from $10 to s60 for each examinations; the new bill proposes to increase these charges to $15 to s100. For example, banks with $25,00O capital are to pay $15; over s25,0O0 and up to s5O,OOO to pay s2O, and so on until banks with more than s5Oo,000 up to $700,000 are to pay $100.
 The estimated receipts of the bank examining department under the new bill would be S19.43O. every dollar of which. with five assistant bank examiners, will be needed to defray the expense of two annual examinations of each bank.
 It is proposed to raise the salary of an assistant bank examiner from s1500 to $500, in order to attract thoroughly com- petent man, and in the absence of the state bank examiner, the assistant Is given the same authority as the principal.
 Another requirement. is that state banks shall write off or put in suit their bad debts, in order to prevent their being carried as assets after they practically cease to be such.
 Severe penalties are fixed in case any officer of a state bank certifies to any draft or check or like paper when the party in whose favor it is drawn has not the amount of funds represented on de- posit with the bank.
 The directors of each bank are required to meet at least once every three months, and once every six months they must make a thorough investigation of the rec ords. No person can be a director in a bank of S25000 capital unless he owns at least $500 of the par value of the cap ltal stock, wholly unencumbered The amount held by directors must be in- creased as the capital stock increases,
 All private banks are required to print Dn their notices and stationery the words mot incorporated"
 Ia ic hat all state banks shall pay in the full amount of their advertised capital stock, in sums of not less than 10 per cent each three months until the stock is fully paid up. Under the present law many banks are organized ostensibly with $25,000 cap ital which is the minimum allowed by law, and sthen pay in only $15,000. This section of the law is designed to cover such cases and to require all state banks to pay up fully their advertised amount of stock in cash. All banks organized after that date must pay in 60 per cent of their stock in cash before they can be- gin business, and must pay the balance In instalments of at least 10 per cent each quarter until fully paid up.
 It is provided that zthe total liabilities of any bank shall not exceed the unim- paired capital, surplus and undivided prof its,t and shall not include deposits sub ject to check or certificate, demand or time deposits, inducements or redis- counts.
 State banks are forbidden to invest in any shares bearing and paying less than per cent interest. They are forbidden to loan more than 50 per cent of their capi- tal surplus and undivided profits on the shares of any single corporation, al- though pledged by separate borrowers. No bank shall advertise more capital than 1t has actually paid in A receipt given by minor for a deposit withdrawn by him-is declared valid. It Is made mis- demeanor for any person to circulate any false statement or rumor regarding any bank
 It Is generally believed this legislation will go through at this session.