The Pioche record. [volume] (Pioche, Nev.) 1908-1925, 1909-09-25
BANKERS INFORMED ABOUT
NEVADA BANKING LAWS


At the meeting OF the American
bankers association, held In Chicago
last week, communication was read
from the state bank examiner for Ne
yada, M. Nj. VanFleet, relative
to the banking laws now in
force in Nevada, in which the official
says:
Answering your request OF August
18th. am enclosing you herewith q
copy in pamphlet form of all the
banking laws In force and effect in
this state, as regret very much that
Fl cannot attend the convention to
be held September 18th n Chicago.
II would respectfully call your at
tention to Sections AS, 48, So and 81
OF the Banking Act of 1909. There
was an endeavor made to pass de-
positors guarantee act, but the bill
was killed, and while mention is
made in these sections of a deposit
Ecrs guarantee fund, we have no de-
positors guarantee law in this state.
"You will note that this law was
enacted by the legislature of 1903,
and is a new law for this state. only
including a few sections 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 lew that was deficient
in almost every particular that should
! characterize a good banking law as
4 was testified by SO many failures Of
banks in this state during 1907 and
4 1908. The new law creates board
to consist of five members to be APP
pointed by the governor. with the
governor as chairman of the board.
The governor In his selection of his
board exhibited rare judgment, the
members being: Hon. J. w. Adams,
former governor of this state; Hon.
4 s. w. Bedford, a prominent attorney;
Hon. A. B. Witcher, banker and Hon.
Chas S. Sprague, successful news
I paper man.
"The board on taking charge of the
!, banking affairs Of this state found
1 some of the banks In not the very
best of condition and the object Of
J the board has consistently been to
build up the banks In the most ex-
: peditious manner 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
I, failure of one Of the banks, the same
: was liquidated and depositors paid II
, full This was made possible, as tht
! act of 1909 vests the necessary pow
r ers in the banking board. The 9th
er bank matter is pending at thi
9 writing, but the board expects to lie
Il uidate it Also and In the same man
: ner
Under this law now governing
: state banking affairs, there is /
, board having the authority to tax,
7 control Of conditions when necessar!
to the welfare of bank depositors
heretofore, there was no such speci
!. fic authority existing, and untolt
complications and troubles resulted
j Bank officials were at liberty practi
! cally, to conduct affairs about a
they pleased, without any restraint o
supervision of any disinterested off
cial regularly appointed for emergen
cies which might arise. The prompt
ness with which the deficiencies D
= the bank which recently failed wa,
made good to the depositors through
! the agency Of the state banking
board, in their authority to take hol,
Of affairs Immediately and direct
\ settlement in the interest of all con
4 cerned, is but q single example o
the merit and practibility of the pro
: visions of the new banking law"
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