Vernon County censor. [volume] (Viroqua, Wis.) 1865-1955, 1910-01-26

maintaining supervision over the
banks n the country clearing house
association ana preventing the prac-
tee of bad banking metho3s, discover
ing bad loans, and taking early action
to strengthen a crippled bank and 90
agais place it on a sound hnancia1
basis
with this belief, this committee
expended some little time in an effort
t. evolve a practices law which
might accomplish this purpose. ir
being the idea that the state might
be divided into seven groups to cor
respond with the groups iato which ir
is voluntarily divided by the State
Bankers association and establish
clearing houses for the purpose above
mentioned in each one Of these
groups. 0pon a further considera-
alton Of the matter, however, it is
deemed inadvisabIs to enact legisia.
ton of this sort at this time. but the
committee here expresses the opinion
that a great good might result from
voluntary action on the part Of tbs
banks in those vafioas groups"
5oguetssfor Bergs.
The committee throws pretty bog
quet at the Wisconsin department. OF
banking when it says that since the
passage OF the present law in 1908 we
have had most excellent system Of
banking supervision, when the mum
Der a bank examiners accorded to'tlie
| banking commissioner is taken into
considerations Our state has been.
and is now exceptionally favored in
she hiEE character and splendid exec
Etige ability Of the present commits
sSoner Of banking and he takes justi.
fable pride, in common with the en-
tire stats,, in psinting to the fact thar
since the passage of the present bank,
/ ing law in this state, no depositor has
suffered lsss Through she allure of a.
state bauIk, save with the single exA-
ception OF q loss OF about S6,oe9s
through the fail,De of small bank
at Hfainfield., It may be that in somes
cases depositors have been deludee
into exchanging their certificates VI
depoRit for a. promfsB0ry note of the
bank officials. when the bank was in
a critical condition and it may be that
i those promisSory notes have turned
out too be of not vCry mgEeh value to
1.-THE holder, but such instances, If they
"A hare occurred, cannst be charged up
i to- the law of CUR sta6e or to our sys-
4 tenn of banking supervision
i willie we may wall feI5e5tate our
selves ON the. splendid results that
hive besn secured frdm the oper.. :on
of our law, it is the feeling of this
q committee that the state has not pro-
; v5dedl tina commissioners Of banking
, with the help necessary to- that close
: and strict supervision of hanks TO
which the dep0sitorss OF the state are
teatitied..
Eees- for E,eamiiTaGi0mS.
i Discussing the question of bank ex-
animation and tina payment of fees
thenefor tAe COMMITTEES points our
t1iat the largest bank in the state
with a. capital of S7,00@a09 pays the
same for an examination fee that IS
paid by bank with a capital stock
of $50,00O. The sf70lO0G bank can be
examined sys one man ia about two
dfEss. while it takes. four men about
a. week to examine the largest bank
, in tile state To examine the $4,000
4 hanks costs the state about $50, while
e tina expense to the state for examin-
y Ing the S1,a90,000 bank Is about two
4 hundred and forty dollars
I'll SeWsaation of Funds.
n Ulon the subject of segregation OF
c Savings from. commarcial deposits the
committee presents proposal and
+ The plan proposed provides that ev.
e cry institution holding itself out as
e receiving savings deposits or which
> maintains a savings department, must
z provide and establish a separate ana
> distinct department for the accommo-
e ahdion of the funds of such deposit
y tors. all the assets of this department
= to be invested only in the highest
: elIss OF securities, such as real es,
: tske mortgages, and bonds. of a ma,
tAnal, stale or municipal govern,
Enent. Such assets to be held at all
seE k1mes separate and apart from the
. nsher assets of the bank and in the
n time of taousl., or OF liquidation, tae
70 savings 6sspositoF is given first rieE
= upon the assets OF this savings do
" partmena
III This law, when passed, gives to ths
= wage essrRer and persons of snail
means rs absolute safety for the ssh
:, return of his money deposited I'm
= !. bank as can be given outside Of an
- absoluee guaranty Such Legislation
: will meet the demands of thissclass O
= individuals for safe repository foi
= their funds, materially, lessening tn,
n demand for postal savings banks. will
- the added advantage of keeping tn,
q. aecamulatfons in the respective com
e. mUnftfes where they ara naeessar.
40 fos- the commercial life Of tisat CON
he nlanity.
al The committee is heartily in accort
er with Bank Commissioner Bergh upol
ok tine question Of uniform bank boob
Ilel Keeping, so far as his position is re
Ks fected in his report To- the govern .
Il for 1908.
IS, While we have NOS attempted t
nd prescribe complete system of bool
al keeping which banks shall empIo,