The Brunswick news. [volume] (Brunswick, Ga.) 1906-2016, 1909-07-14
BANKING LAWS
Of THIS STATE
MAY Be CHANGED
AN IMPORTANT BILL Is NOW
PENDING BEFORE THE
SENATE.
Two Examinations VIII Be Required
Each Year if Bill is Passed-Num-
ber of Other Important Changes
Made.

An important bill affecting the
banking laws of the state is pending
before the senate, where it was in
troduced by Senator Rutherford. This
measure, il is stated, has the appro-
val of the state banks generally, par
ticularly those belonging to the Geor-
gia Bankers association
One of the first purposes of the bill
is to make such provision as will both
require and insure two examinations
annually of each state bank. With
the present force, one state bank ex-
aminer and three assistants, this has
been found practically impossible.
Under the new bill there are to be
five assistant bank examiners, each
at salary of $500, instead of the
$1,000 now paid.
The expenses of bank examination
are not to be paid by. the state, but
by the banks. In order to secure q
sufficient fund to pay these expenses,
the bill provides for an increase in
the charge upon each bank for ex-
animation These fees are to be in
creased from the present rate of $40
to $50, and SIS to >100.
bank with $4,000 capital now
pays SIC for each examination; under
the new schedule it will pay SIS, and
so on in graduated scale until banks
with more than 100000 capital will
pay $100 for each examination.
Two Examinations a Year.
These fees and other sources of in
come will raise total Of $19,430, all
of which will be needed to pay the ex-
penses of the examination twice each
year of 466 state banks. The salary of
the state bank examiner and assist
ants amount to $t2.45O; their ex-
pense when travelling $4,000. while in
cidental expenses will take up the
balance. ~ 4r.
The assistant bank examiner is, un-
der this measure, given the same au-
thority as the state bank examiner in
his absence. The law gives the as
sistant the power to administer oaths,
and makes two YEARLY examinations
Another requirement is that state
banks shall either PUT IN suit or write
off their bad debts, in order to prevent
their being carried as assets when
they may have ceased to be such.
Severe penalties are provided in the
event that any bank official certifies
to any draft or check when the party
to whom it is issued has not in bank
the amount of funds the paper calls
for
1t is provided that no person shall
be a director in bank of s25. 1000
capital unless he owns $500 worth
of its stock, which is unencumbered
in any way; in bank of $4,000 cap
ital he must own $500 of the stock
unemcumbered and so on.
Protection of the Banks.
Under the bill no bank is permit
ted to invest in any shares Of stock
in any corporation which have been
paying less than per cent. at any
time within five years; if they have
any such stock they must dispose
of it.
No bank is to be permitted to loan
more than 80 per cent. of it's unim-
paired capital, surplus and undivided
profits upon the shares of any cor
porations, although they may be
pledged by different borrowers.
Receipts given by minors for the
withdrawal of deposits which they
have made, are to be held valid in
law
No bank is to be permitted to ad-
vertise more capitalization than il
has actually paid In.
1t is made msdemeanor for any
person to circulate false statements
Or rumors regarding any bank
The Rutherford bill has been re-
ferred to the committee on banking.
A similar bill has been introduced in
the house by Mr.. Davis. of Dougherty.
who is a well-known member Of the
Georgia Bankers association.
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