The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1909-02-03
BANK EXAMINERS REPORT,
SAYS 1T is TOO EASY TO ORGAN.
ILE BANKS.
Wilson Makes a Number NJ
Recommendations 10 Safeguard
Bank Depositors-Would Require
directors to Take Oath.

doing very efficient and satisfactory
work, has submitted a most interest.
ing report to the general assembly.
Ihere Is much in the excellent report
that ought to be regarded by the gem
eral assembly. In concluding his re-
port ne makes these suggestions.
which will be of general interest:
believe 1t is entirely too easv to
organize bank in this State. Any
TWO or more persons desiring to form
SUCH corporation need only to file with
the secretary Of state a written ne-
titfon. signed by themselves, setting
forth:
!. The names and residences OF the
petitioners.
2. The name of the proposed corp
grafton.
.. The place at which it proposes
to have it's principal place of business
or be located.
4. The general nature of the busj-
ness which it proposes to do.
o. The amount OF capital stock
and how and when payable.
s. The number Of shares into
which the capital stock is to be diyid-'
ed, and the par value of each share.
z. Any other matter which it may
be desirable to set forth.
Please note. these facts:
Only two incorporator's are requir-
ed.
There is no minimum Limitation as
to capital.
Only SO per cent Of the proposed
capital is required to be subscribed.
Only 20 per cent of the aggregate
amount Of the capital subscribed is re-
quired to be paid before such institu-
ton can obtain charter and be author
lied to commence business.
No requirement exists as to when
the remainder of the capital shall be
subscribed <or ps,id in.
Nothing prevents subscribers from
giving their notes to the new bank in
payment OF ssid subscription, with the
stock uf the bank itself as the only
security.
/ recommend that no new bank be
permitted to do business with a less
number Of directors than five, nor
with a less capital than $4,000, and
then only in towns Of 500 population
or less; that when the population is
over 500 the capital must be $4,000:
that when the population is over 1000
the capital must be $25, 900; that when
the population is 5000 or over the
capital must be $4,000: that the said
capital, according to the population of
the town, must be at least four-fifths
subscribed; that at Feast so per cent.
OF such subscription must be paid in
cash before the bank is authorized to
commence business; that the remand
er of said subscription must be paid in
cash within period Of twelve months.
The only qualification now required
OF bank director is that he shall own
ten shares Of its stock. Bank stock in
this State varies from $25 per share to
500 per share. With the par value
at $25 per share in 100000 bank
and at 800 per share in a $4,000
bank. (and there are instances of both
In this State.) 1t will readily be seen
that the ownership Of ten shares is
not equitable.
I recommend that such qualification
be apportioned according to the
amount of the capital. 1t does not
seem fair that director in a $4,000
bank be required to own ten shares.
par value of 500 each. or one-tenth
of the entire capital, while a director
in a 100000 bank may fully comply
with the law by owning ten shares,
par value of $25 each, or only one
four-hundredth Of the entire capital.
Such inequalities now actually exist.
. / would further recommend that
each bank director, when elected, shall
take an oath that he will, so far as
the duty devolves upon him, diligently
and honestly administer the affairs of |
such corporation, and will not know |
ingly violate, or willingly permit TO be |
violated, any of the provisions of law |
applicable to such corporation. and |
that he is the owner i'm good faith and |
in his own right. Of the number of |
shares of stock required subscribed |
by him or standing in his name on the |
books of the corporation, and that the |
same is not hypothecated. or in any |
way pledged as security for any loan !
or debt and, in case of re- ELECTION. that |