River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1910-01-27
BANKS COMMITTEE
MAKES A REPORT
Nine New Laws to Safeguard
Bank Deposits.
NO WAY TO STOP FAILURES
Scheme Not Yet Developed Which Az
fords Absolute Security-Segre-
CATION of Commercial and
Savings Deposits.

Madison.-Recomme nine sep
arate bills upon questions relating to
banks and banking, but making no rec
ommendation regarding a bank guar
anty law, and submitting a long and
carefully prepared statement OF the
results of it's Investigations, the spe-
cial legislative committee on banking
has finished its work and is prepared
with its report
The report is addressed to Gov. j..
o. Davidson and the Wisconsin legis-
lature, and the bills proposed are:
To provide for the segregation OF
savings from commercial deposits,
with a penalty for violation.
Prescribing the duties of bank direc-
tors.
Relating to loans made by banks on
real estate.
Relating to the purchase of bank
stock.
Providing for the kind and method
and manner of keeping books and &C
counts.
Relating to the investment of funds
of mutual savings banks.
Relating to the regulation and SUI
pervision of banking business.
Relating to the making of loans by
banks to members of boards of direc-
tors.
Relating to fees for examination Of
banks.
The bill providing for the segrega-
80 oil
posits prescribes that any state bank
which uses the name savings as part
of it's corporate name or holds itself
out as receiving savings deposits must
keep the moneys and securities OF that
department entirely separate from and
unmingled with the other funds of the
bank.
The proposal relative to the duties
of bank directors provides that the
board of directors of any bank shall
consist of not less than three persons,
all of whom shall be residents of the
state and majority residents of the
county or adjoining counties in which
the bank is located.
A third measure provides that no
bank shall lend any part of its capital,
surplus, or deposits upon real estate
mortgages, or any other form OF real
estate security, except in this or ad-
joining states.
The bill relating to purchase of bank
stock provides that no bank shall be
holder of or purchaser of any portion
of it's capital stock unless such pur-
chase shall be necessary to prevent
loss upon a debt previously contracted
in good faith.
The proposal regarding the manner
and method of keeping accounts of
banks provides that the commissioner
of banking may require the officers OF
the bank to keep such books and in
such a way as he may prescribe.
Failure or refusal will subject the vio-
lator to a penalty of SO per day for
each day until the requirement is COM
piled with.
Another bill provides that mutual
savings banks may employ one-half OF
their deposits in the purchase of gov
eminent or state bonds, or of author
lied bonds of incorporated cities, vii
Lagos. towns or county or school dis
tricts, or first mortgage bonds of any
railroad company which has paid a
dividend of not less than four per
cent. for five years next preceding.
All other loans shall be secured by
mortgage on unincumbered real estate
in Wisconsin or adjoining states, to-
wit: Michigan, Illinois, Iowa and Min
nesota.
The seventh measure provides for
the enlargement of the powers of the
commissioner of banking, for an in
crease of his salary and for the great
er efficiency of the department.
The eighth proposal forbids bank
to loan money to members of its
board of directors.
The report of the committee to the
legislature proclaims that no absolute
preventure of bank failure can be pro-
vided by legislative enactment.