The White Pine news. [volume] (Ely, Nev.) 1906-1910, 1909-09-21
NEW BANK LAW
MEETS APPROVAL.

A letter from M. M. van flect, lHe
State Bank Examiner of Nevada was
read before the meeting o. the
American Bankers Association held
in Chicago last week, says the Car
son Appeal. A request from The
| President of the Association for the
State Bank Examiner of Nevada to be
present was received here several
weeks ago and it was suggested that
if Mr.. Van Fleet could not attend
he would send a short statement of
the workings of Nevada's rev baak-
ing law, passed at the session of
the last legislature, in reply to this
request Mr.. Van Fleet forwarded the
following letter to the President of
the Association and the Nevada Bank
ing Law as described in this letter
was approved by the Committee APP
pointed to report on the banking
laws of the various states:
Hon. Pierre Jay, President,
National Board of Supervisors of
State Banks.
40 Wall street, New York City.
Dear Sir:
Answering your request of August
18th, l am enclosing you herewith a
copy in pamphlet form of all the
banking laws in force and effect in
this state, as / regret very much that
| cannot attend the convention to
be held September 18th in Chicago.
| would respectfully call your at
tention to Sections 46, As, 50 and 81
of the Banking Act of 1909. There
was an endeavor made to pass a de-
positors guarantee Act, but the bill
was killed, and while mention is
made in these sections of a deposit
tors guarantee fund, we have no de-
positors guarantee law in this state.
You will note that this law was
enacted by the legislature of 1909,
and is a law for this state, only
including a few changes of the then
existing law.
Under the old law the Banking
Board consisted of the Governor, the
Secretary of State and the State
Treasurer, who were compelled to
work under a law that vas deficient
in almost every particular that should
characterize a good banking law as
was testified by so many failures of
banks in this state during 1907 and
1908. The new law creates a board
to consist of five members to be ap-
pointed by the Governor, with the
Governor as chairman of the Board.
The Governor in his selection of this
Board exhibited rare judgment, the
members being: Hon. j. w. Adams,
former Governor of this State; Hon.
s.. w. Bedford, a prominent Attorney;
Hon. A.. B. Witcher, banker and
Hon. Chas. S, S%prague, a successful
newspaper. man.
The Board on taking charge of the
banking affairs of this state found
some of the banks in not the II y
best of condition, and the object of
the Board has consistently been to
build up the banks in the most eX
peditious The result has
been very gratifying, as there has
only been two failures this year, be-
ing banks affiliated with each other,
and within three weeks after the
failure of one of the banks, the
same was %liquidated and depositors
paid in full. This was made pos
sible, as the Act of 1909 vests the
necessary power in the Banking
Board. The other bank matter is
pending at this writing. but the Board
expects to liquidate it also, and in
the same manner.
Under this law now governing
State Banking affairs, there is a
Board having the authority to take
| control Of conditions when necessary
to the welfare of bank depositors
heretofore, there was no such speci-
fic authority existing, and untold
complications and troubles resulted
Bank officials were at liberty, practi-
cally to conduct affairs about as
they pleased, without any restraint
or supervision of any disinterested
official regularly appointed for emer-
gencies which might arise. The
promptness with which deficiencies
of the bank which recently failed wa:
made good to the depositors through
the Agency of the State Banking
Board, in their authority to take hole
of affairs Immediately and direct {
settlement in the interest of all con
cerned, is but a single example o.
the merit and practicability of thu
! provisions of the new banking law.