Evening star. [volume] (Washington, D.C.) 1854-1972, 1910-02-08
LAWS ruling BANKS
Digest of Legislation Enacted
by the States.
DOZEN SUBJECTS COVERED
Report Issued Under the Auspices Of
the National Monetary
Commission.
DOZEN SUBJECTS COVERED

The banking laws of all the states and
territories of this. country have been sum-
married. and compared in remarkably
clear and useful digest just issued under
the auspices of the national monetary
commission as another output of its eX-
haustive investigation of banking and
| financial operations aud conditions in this
| and other countries
| The monetary commission consists OF
| the following: Nelson W. Aldrich, Rhode
Island (chairman): Edward B. Vree-
land, New York (vice chairnan>; Ju-
Illus c. Burrows, Michigan: Eugene
Hale Maine; Philander c. Knox
Pennsylvania: Theodore E. Burton, Ohio;
John W. Daniel, Virginia: Henry NJ Tel
Ter, Colorado: fernando D. Money, Mis-
sissippi: Joseph W. Bailey, Texas; Jesse
Oyerstreet, Indiana; John w. Weeks
Massachusetts,; Robert w. Bonynge. Col
| orado: Sylvester c. Smith. California,
Lemuel P. Padgett, Tennessee; George +.
| Burgess, Texas: Arsene P. Pujo, Loutsi-
ana; A. Piatt Andrew, special assistant
| to commission; Arthur B. Shelton, score
| tary. r..
Digest Unique in Scope.
The digest just issued, practically
unique in scope, is the work Of Samuel \.
Weldon of the New York bar. and in its
preparation the compiler has had the as
| sistance of the banking officials of most
! of the states. Although for practical
| reasons the compilation has been sharply
| condensed it makes a volume OF |JO
pages, SO comprehensive in its treatment
| Of the varying laws of the several Jurls-
| dictions that 1t will prove inva1uab1e 10
all students of banking and of bank leg
islation and will no doubt be in great
| demand
Subjects Covered.
The statutes are systematized as far as
possible under the head of each state by
division into three general captions
bAnks. savings banks and trust companies
but in some cases material which ap-
plies to one or more classes is presented
under one head. Under each of the three
captions the following twelve subheads
appear:
/. Terms of incorporation-includin
capital. dividends. surplus, etc.
IL Liabilities and duties of stockho1d-
ers and directors.
III. Supervision, including reports and
examinations
| w. Reserve requirements.
! VI. Discount. loan, and sometimes de-
I post restrictions.
! VI. Investments.
/ VII. Overdrafts.
! WILL Branches.
TX. Occupation Of the same building.
! X. Unauthorized banking, savings bank
/ ing or trust company business.
| XXI. Penalties.
XII. Depositors guaranty system.
State Legislation Reviewed.
| One of the most valuable features Of
| the report, from the viewpoint of general
research, is the summaries of the legisla-
| ton in each state governing the principal
subjects of banking law. arranged in tab
ular form. There is a table for CONNER
cial banks one for savings banks and one
for trust companies. These tables set
forth in a striking and comprehensive
way thirty-three items in the banking
statutes of forty-five states. two terri
tories and the District Of Columbia Thus,
1t is possible at g'ance to determine In
a general way the leading features OF the
law of each state and their comparative
relation to the laws of other states.
Among the items dealt with In regard to
state banks are the minimum capital re-
Quired; percentage of capital required to
be paid In to begin business: when the
remainder must be paid: requirements as
to surplus: liability of stockholders: num-
Der of directors and their qualifications;
number of examinations by directors re-
quired: special banking supervisor. If any,
with his term of office; cases where su-
pervision of banks is assigned to other
| officials: bank reports required; pubica-
! ton of unclaimed deposits official exami-
nations; minimum reserve requirements,
| and what proportion must be in cash:
| limitations on loans, including real es-
| tate; and provisions regarding branches.
Minimum Capital Required.
| The table relating to state banks shows
that the minimum capital requirement Is
in many cases below that of the national
banking law, even since that was reduced
the minimum is comparatively low are:
Florida. $4,000: Kansas. $4,000; Ken
lucky. $1,000; Louisiana. $4,000: Mime
sofa, $4,000; Mississippi. $4,000: Mis-
souri,. $4,000: Nebraska, $4,000; Nevada,
$4,000; North Carolina, $1,000; North Da-
kota, $4,000; Oklahoma. $4,000; Oregon.
$4,000; South Dakota. $4,000; Texas. s1O,-
Co.,: Utah. $4,000: Virginia, $4,000, Wis
consin, $4,000: Wyoming. $4,000. These
are in each case the minimum for the
smallest communities, and higher mini
mum is required in some states in towns
above a certain population.
State Supervision.
| The summary in regard to state super
vision shows that about half the states erly
upon some other official than a superin-
| tendent or commissioner of banking, al
are appointed. Thus, in Alabama, the
| duty of supervision falls upon the state
treasurer: in Arizona. upon the auditor
of the territory; in Delaware, upon the
insurance commissioner; in Florida, upon
in, rrio