The Yakima herald. [volume] (North Yakima, W.T. [Wash.]) 1889-1914, 1910-02-09
BANKING LAWS
NOT UNIFORM
Monetary Commission After In
vestigation Finds Many Dis
crepancies in State and Fed
eral Laws.

vestigation Finds Many Dis
crepancies in State and Fed
eral Lawns.
4 WARRINGTON, Feb. THE bank.
Ing laws Of all the state and territories
II this country have been summarized
and compared in a remarkably clear
and useful digest, issued today under
the auspices Of the National Monetary
lCommission az another output sof its
exhaustive investigation Of banking
and financial operations and conditions
| in this and other countries. This d.
gest, practically unique in scope, Is the
work of Samuel A. Weldon of the New
York bar, and in its preparation the
compiler has had the assistance of
the banking officials of most of the
states. Although for practical rea-
sons the compilation has been sharply
condensed, it makes a volume Of
$50 pages, so comprehensive in its
several jurisdictions that 1t will prove
and of bank legislation and will no
doubt be in great demand.
1t has not been attempted to pre-
sent anything but the substance Of
the statutes, for the reason that a
digest dealing with their application
or Interpretation would involve great
labor and flll an amount of space
greater than the commission thought
proper to give to the subject. The
digest deals with the general corpor-
alton laws Of the states las distin-
guished from the banking laws) only
where they were peculiarly accessible
or the ba nix statutes left blanks which
needed to be supplied. Provisions Of
the state laws dealing with circula-
ton are omitted as being of no prac-
teal value, in view Of the present
control of circulation by the national
banks
"14 How Classified.
% The statutes are systematized as
far as possible under the head of
each state by division rintd three gem
eral captions--ban INKS, savings banks.
and trust companies-but in " some
cases material which applies to one or
more classes is presented under one
head. Under each Of the three cap
tions the following IL subheads APP
pear: rsr., 49,
L. Terms Of incorporation-in-
Guiding capital, dividends, surplus,
etc.
| 2. Liabilities and duties of stock
holders and directors.
| 3. Supervision, including reports
and examinations.
4. Reserve requirements
5. Discount, loan and sometimes
deposit restrictions.
6. Investments.
| 7. Overdrafts. sf
s. Branches.
8. Occupation of the same build
ing.
10. Unauthorized banking, savings
banking, or trust-company business.
| II. Penalties. lt.
10. Depositors' guaranty system.
While 1t has not been possible,
where the statutes went into elabor-
ate detail, to give all their provisions
in regard to minor matters such az
the duties Of state officials, legal pro-
cesses, form Of pass books, and legal
proceedings. for assessing stockhold-
competent attorney to turn quickly
to anything desired on these sub
jects.
State Banking Laws.
! One of the most valuable features
Of the report, from the standpoint of
general research, is the summaries of
the legislation in each state govern
ing the principal subjects of banking
law, arranged in tabular form There
is a table for commercial banks, one
for savings banks, and one for trust
companies These tables set forth in
a striking and comprehensive way 80
items in the banking statutes Of As
states. two territories, and the District
of Columbia. Thus, 1t is possible at a
glance to determine in general way
the leading features of the law of
each state and their comparative re-.
lation to the laws Of other states
Among the items dealt with in regard
to state banks are the minimum capt.
tai required; percentage of capital
required to be paid in to begin BUSH
ness; when the remainder must be
paid; requirements as to surplus; liza
bility of stockholders; number of d.
rectors and their qualifications; num-
Der of examinations by directors re-
CURED; special banking supervisor, If
any. with his term of office: cases
where supervision of banks is as
signed to other officials; bank reports
required; publication of unclaimed
deposits; official examinations; mini
mum reserve requirements, and what
proportion must be in cash; limita-
tons on loans, including real estate;
and provisions regarding branches.
State Bank Reserves.
The table relating to state banks
shows that the minimum capital re-
quiremen Is in many cases below
that of the national banking law, even
since that was reduced in 1900 to
$4,000. Among the cases where the
minimum Is comparatively low are:
Alabama. $4,000; Colorado, $4,000;
Florida, $4,000; Kansas. $4,000;
Kentucky. $4,000; Louisiana, &c.
900: Minnesota, $4,000; Mississippi,
10000; Missouri, $4,000: Nebraska,
$4,000; Nevada. $4,000; North Car
DINA, $4,000; North Dakota, $4,000;
Oklahoma. $4,000; Oregon. $4,000;
South Dakota, 100000; Texas. $10,-
900: Utah. $4,000; Virginia. $4,000;
WISCONSIN, $4,000; Wyoming, &c.,
600. These are, in each case the
minimum for the smallest commun-
tiles, and higher minimum is re-
quired in some states in towns above
a certain population.
J. The summary in regard to state
supervision shows about half the
states to rely upon some other official