The San Juan islander. [volume] (Friday Harbor, Wash.) 1898-1914, 1911-02-10
CHANGES IN BANK
LAWS ASKED
MORE POWER TO REGULATE IN
sTiTuTIoNs REQUESTED
BY MoHuNDRo.
Annual Report Specifies Twenty-eight
Respects in Which He Thinks
Changes Would BE Beneficial
Would Also Regulate Building and
Loan Associations.

Loan Associations.
Twenty-eight recommendations for
new legislation intended to add
strength and prestige to the banking
position in the state of Washington
have been made by State Bank Exam
| liner J.. L. Mohundro in his annual re-
port just handed to Gov. M. e. Hay.
Mr.. Mohundro desires legislation which
will enlarge the powers and the eff
cheney of the state banking department
and which will tend to further safe
guard the depositors and stockholders
of the state banks. Mr.. Mohundro
made his recommendations after in
]vestigation, not only in this, but in
other states. He expects that large
number of the suggestions, if not all,
will be acted upon at the present ses-
sion of the legislature. His recommen-
dations follow:
Regulate Building Associations.
In banks that carry both commercial
and savings accounts, entire segrega.
ton of the deposits, the law defining
! in which class of securities the savings
deposits may be invested and requir-
| ing that these securities be held for
the special use and benefit of savings
depositors; defining the amount of re-
serve that must De kept by the savings
department and defining what consti-
tutes savings deposit.
Building and loan associations and
savings and loan associations to be put
under the supervision of the banking
department, with adequate fees provid-
ed for examination and supervision.
Fixing the limit of the amount of
money that may be expended in bank
building and bank fixtures, according
to the capital stock and surplus of a
bank
Providing that no individual or indi-
viduals shall engage in the banking
business in private capacity, but that
all persons engaging in the banking
business shall form corporation for
that purpose.
An amendment to the present act en-
abling the examiner to enforce the law
which provides that all real estate ac-
quired by a bank, except its Office
building, must be disposed of within
five years. The penalty or manner of
procedure against the bank should be
provided.
To Limit Loans. +
| Only citizens of the United States
should be permitted to incorporate a
bank and the majority of the board of
directors should be citizens of the
state.
The examiner should be required to
designate reserve cities and reserve
agents for banks.
| Limiting the amount to be loaned to
one individual or firm.
Prohibiting bank from investing it's
capital or money of its depositors in
shares of corporations, and providing
when such shares are taken in the col
lection of debts, time for the dis
posal of the same.
| Enabling the state examiner to au-
| thorize banking corporations and col
iect annual corporation tax against the
same, instead of the secretary of state
performing the duty, as at present.
Two Examinations Per Year.
Requiring at least two examinations
per annum of all banks, building and
loan and savings and loan societies,
and where in the opinion Of the state
examiner it is necessary, quarterly ex-
aminations, such banks and societies
paying the regular fees for examina-
lions.
providing that the state examiner
settle the affairs of failed banks and
providing for special deputy to be
paid out of the banks assets while in
charge of the failed institution.
Defining fully what are the powers
and duties of the examiner in charge
of bank temporarily, L. e., before it is
finally declared insolvent.
Requiring banks to keep a stock
book properly posted, showing the
name, address and number OF shares
held by each stakeholder, and requir-
ing that the stock. be issued in the
name of the party to whom it actually
belongs.
Requiring the publication of I'M
claimed bank deposits after the same
have been inactive for ten years, slow
| ing the name, amount and last known
postofice address of the depositor.
Requiring the state examiner or the
board of directors of bank against
which an assessment has been made.
to sell the stock on which the assess
ment has not been paid.
To Protect Stock.
An amendment to section Al, chapter
225 of the laws of 1907, which provides
that when the capital stock of bank
is impaired. that the impairment must
be made good or the capital stock of
the bank reduced to a point where
there would be no Impairment: said
amendment providing that the capital
stock may not be reduced to an amount
less than the amount required by law
In CITY or town 0f tho cizn ~ +1,a 49,,