The Idaho Republican. [volume] (Blackfoot, Idaho) 1904-1932, 1910-07-08

fore the bankers convention of Idah,
Falls.)s
THE proposed new banking Law
has been discussed considerably b,
the members of this association and /
is needless for me to go over tn,
whole matter.
"The present banking law, as WI
we'll know, was the first such law thi.
state has ever had. Prior to its en-.
actment in 1905, there was no re-
strictions placed around our banks
At that time in order to put any bank.
ing law upon our statute books 1t was
necessary to 60 carefully and make
concessions in order to get the ap-
proval and support of the bankers.
Conditions in our state have
changed materially since the present
law went into effect and I believe, to
be in keeping with this change of
conditions, that 1t is necessary to
make our laws conform thereto.
Practically all other states have pass
ed new banking laws within the past
few years and consequently our pres
ent law does not compare favorably
with the laws of these states.
'The banking business itself has
changed considerably within the past
10 years. Nowadays bankers who
expect to build up their institutions
must necessarily seek accounts and
solicit business very much on the
same order as in other lines of bust
ness. In order that bank may ex-
pec+ to enjoy the confidence of the
public it must be conducted and man
aged by men of good standing and in
conservative manner.
eve must have laws that will re-
quire banks to conduct their business
in legitimate manner and along
conservative lines. Such laws will
not only protect the stakeholder, but
the depositor as we'll.
DepOitOrs Must Be Satisfied
ut is not necessary to throw re-
around the banker such as
would seriously hamper him in doing
business. What we need is a law
rigid enough, with sufficient author
ity back of it for its enforcement, so
as to satisfy the depositor that the
banks are safe place for the deposit
of their money. Some bank failures
during the past few years have dis
closed the fact that directors of bank
ing institutions are, in many cases,
mere figure heads. Too often the
of banks is left to the
)ne man-usually the cashier He
passes on all loans and credits and in
l general way conducts the affairs of
he bank without consulting any of
he other officers or the board of d.
'ectors.
Public sentiment from all direc-
ions demands that directors shall at
ii times keep informed of the condi-
ion of their bank or suffer the conse-
Luences of failure to do so. No man s
s director of bank, should use his {
and standing in the COM
1unity for the purpose of attracting
eposits, who gives practically none |
f his time and devoting little of his !
nergies towards the safe conduct of $
he business by which he profits. Ig-
ORANGE of the management should
e no excuse for dissipation of de-
ositors' money.
Examining Committee, Protection =
"In order to protect the stockhold- r
and depositor and satisfy the bank 7
that the directors of Il
le bank are in touch with the condi- II
on of their Institution an examining b
has been provided for in o
lie proposed law. 1t also provides p
n a regular meeting of the board of a
rectors at least every three months. o.
his action not only heads off any W
'ndency of the directors toward
eading responsibility, in the event a
failure, but is long step in the Al
rection of preventing failure by in c;
ting cooperation in the manage d
ent of the bank. l earnestly hope b
lat such requirements win be made a
lrt of our banking law. in
Under the present law, in organ tt
ing bank, you are not necessarily d.
quired to pay in one dollar in cash vi
capital stock Under the proposed W
W not less than SO per cent of the
i'd in capital must be in actual tn
sh and no stakeholder is permitted We
give his note to the bank in pay CO
emit of stock in such bank. W.
II believe all articles of incorpor- pc
inn sfouId no nrenared unOn hIankc Dl