The weekly chieftain. [volume] (Vinita, Craig County, Okla.) 1905-1913, 1911-01-13
ISSUES HISTORY
Of STATE BANKS


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-r azpz-1 since -1e creation q
-1e zzro1zl BANKS n 1854 zzs 5ees
- 1z -ze National G8ueszrv com
1sE II as 5ee1 Prepared y P-1f
~ zez1- u soau EoBz-u.
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TIE rzrouH 7r1F.sEaus VI me ava 3
-1e dEEzE=ar STATES r=gzr1faz -ozuz
-zs zagiual s-1cza0l1e-s la5u
IT, szDeETs.au- zzd 1t1er s-z-I-zs 81
banking ara zzzazIsz--=lT 1lscazze1-
stz1s banks haze 5ee1 srza1.IT szIB.
5lsa-ug azgoual aza 1rz z-a .ust-r-I.
--Ons lsv-ag sua.I ea1fta- 5lr P-1-
-essGr EsrlEE1s statistics seen To Snow
.1zr raers & Gr-Ls difference IN ze
percentage q failures among srzua
banks sr lsGouat alsc1Ic.ous. zLc1os-z1
ne -zrs & l1scl7eacz n --1st con-
DsHles seems u BE- s1mew1zr higher
Professor 6zruer1 points CUT -aar as
rrgsr companies rave gradually zz7sn
- ddeiLCT insurance and TIE guarzu-
rsefug 81 and -r.e. and nave assumed
= genera banking business t1e IegzI
rssf-cs,ous imposed lDcu them By r1e
Tsr.ous stare have become similar e
me restrictions imposed upou s1z1s
5aaks- The present tendency Ct 1ezi#
scarss is 70 disregard names and Lag-
lslats for the KIND u business actually
done FOR instance, : stares fsTew
Hampshire, Michigan. Counec-lcut-
NassaeauserCs. Rhode Island Gait
fornla- and Texas have DsEided taat
savings deposits n trust companies
saaH &c Invested n the sane way As
funds held By muruz. savings banks
and tAac Che assets q savings depart
menrs BE- segregated Tor the benefit
Il savings aeposir0rs
n states alabama, Ohio. Oregon.
Missouri. ard Nevada ~the stzte con
provides that stockholders
snail be ehargeahIe only s5r unpaid
Il Il ether states
fAgizona. Arkansas. louisiana. Missis-
siDpi New Hampshire. View Jersey. F
Rhods Island Tennessee. Virginia I
Connecticut and DelawareY there are
20 general laws imposing additional /
liability On stockholders. "Tn all the
states and territories where
state banks are Incorporated an ad-
iItionaI liability Is imposed On stock
lo5dsrs and in all but two the addi-
loual liability imposed fs equal to the
amount II stock held However. the
imposition 0f rhe statutory liability on
.he stockholders of state banks and
rust companies has not proved Of
sreat service a protection TO bank
.rsditoFs against loss because. .C1j it
s usually liability to individual
.reditors and not to the bank, (2l it
3 usually secondary liability. and
81 transfers of stock to evade the LA
IHty are difficult 10 prevent.
A Professor Barnett points out, with /
~ sgsten u small separate banks.
2 bank having limited number
toners for loans. It IS well to re-
tricr the amount loaned to a single
orrower. The states have generally i
olIOWed the national bank law and {
ave limited the amount that a state 10
ank or trust company can loan to a Is
ingie borrower TO 10 per cent Of the It
aDitaI and surplus q the bank Ger Is
sin secured loans are usually except Il
from this provision. The states q
California. Nebraska and Oklahoma Z
,rbid loans 10 of8cers. and other states a
satrict such loans 4
Most state banks. Bnlfke national g
anks are allowed to loan or real es- Il
ste security. although there are pro 4
.sloHs 'in some d The state laws De. q
ming the character Of the loans which
.ay be made o. real estate Such
ans constitute much greater per
sntage Of the capital Of banks n
nall cities than in larger oneg. The
Dility TO make real estate loans "a
lIuable privilege to the banker Who :
pes not have large commercial :
ientele ?