Albuquerque evening herald. [volume] (Albuquerque, New Mexico) 1911-1914, 1912-04-19
TO
CIRCULATE STORY
TO HARM BANK
Provision in Proposed Banking
Bill introduced by Holt;
Legal Holidays which May
Be Observed.


Especial Correspondence 90 tha ueraIaD
Santa ~, n. H. April lS.--For the
benefit ana information OF tho ~Com,
mon eeezer~ Il may be stated thar
the legislature is leeialatlng these
days. az least in limited sort
Of way and q number OF the "big"
bills are beginning TO be thrown into
the hopper, among them being q new
banking law, designed to entirely rev.
olutlOnze banking methods. measure
creating the office Of clark OF she
court IN each judicial district. a bail
10 prevent public officials from ex-
oeeding the amount Of their approprin-
lions and q number Of other timely
pieces OF legislation.
The banking bill, which was drawn
up by Judge u. r. Wright after a
couple of months work, has the hack
ing OF the state Bankers Association
end is a codificatlOn Of the existing
laws In California and Colorado.
II was presented in the senate yes
terday by Mr.. Holt, leader Of the ma
iority and is now IN the hands OF
the committee on Banks and Banking
Of the senate Il Is senate bill mum.
Der So, and win be printed for distri-
button In few days
The bill is one Of the most volumin-
Gus OF the present session and classl-
files banks into Commercial Banks,
Savings nunga and Trust companies.
1t includes every financial ingtitu-
ton except national banks operating
In the state and Ia one OF It's first
sections provides that all but National
Banks must Incorporate under the
laws Of this state and no Other
Under this act, no hank can or
ganlze With q capital OF less than
Si6,000 paid np In city or town OF
less than 5000 Inhabitants and II
must have at least $4,000 paid up
capital In a city or town Of moro than
5000 population This capital must
be kept intact for payment OF credi-
tors.
The rules for the organization and
government OF the bank under its Of
ficials are similar TO those IN effect
In most states OF tho union. After
January 4. 1913 the bill provides that
the combined capital and surplus Of
every bank shall be equal 20 1T least
ten per cent OF its average daily de-
posits during the last six months OF
the previous year.
All banks axcept savings banks.
must keep a legal reserve Of at least
twenty per cent Of the deposits. Saw
ings banks must keep reserve or
, fifteen per cent Of saving deposits
In addition to the twenty per cent Of
= other deposits. AN banks must
q hold cash. az least twenty per cent
s OF all required reserve. Amy part Of
q thar reserve not required 10 be kept
on hand In cash may be kept In any
: national bank or In any slate bank
/. designated by the bank examiner as a
: reserve depository Any bank so dos
< ignated must keep on hand twenty
= five per cent Of It's deposits as re-
Q serve and al least thirty per cent OF
It's reserve IN cash IN its own vaults.
q When any bank can comply VITA
= these requirements, Il may DO made a
d reserve depository By tho bank ex-
= aminer.
h a paragraph In the new law makes
e II a misdemeanor for any person 10
n circulate any mallclously damaging
rumOr. report or story affecting the
financial condition Of the bank
whether written. printed or by word Of
. mouth.
4 All peFuons owning stock IN ans
Z bank. need not make returns thereon
to the assessor bat the officers OF the
bank musi give n LIST Of stock. the
names OF the owners, the value there
of and similar Information 10 the as
SCISSOR upon demand and no bank maj
be required 70 pay taxes upon any
property held by II but the taxes shall
be assessed against the stock.
Fifteen or moro persons, a majority
OF them residenta Of the state, ara
required 10 form q trust company
- otherwise the present law Is not
y greatly altered.
n sank Examiner Provided.
Article four Of the proposed law
G creates the office OF bank examiner
for the State who shall BE- appointed
By the governor and with the consent
OF the senate and shall be- appointed
for fouF years. The examiner must
e have at least five years experience aa
b a banker and shall not ba Interested
2 Ii any baRk On the state except az de-
:. pOsiJQr. ilit salary a fixed az 81 OOO
year and he q given q eiaFk n
y 81 800 q year who may act as a deputy
NAN 4NNANA iNtNAN NN"NNAMNA anu I"NN
T. deputy or deputies employed IN spec
cial easoa, must have been resldenta
(, ~ tae state at least two years prior
u 10 appointment Tho examinor shall
have a seal on which shall be printed
h state bank oxaminor of New Mexico
b neither the examiner nor hia deputies
y shall receive compensation from ans
n bank and they must not reveal any
q Information secured BY them except
n In the proper discharge OF their duties
q AZ specified BY Law.
u The state examiner must examine
an banks Of least twice a year and aa
often thereafter, as he may deem adj
"A yiaiabie or necessary. No bank shall
y however be- required 20 pay for more
q than four examinations a year unlcal
u the banks request the examination.
a All fees collected hy the. eHamlnol
/. on hts deputies, shall be turned into
{. the state treasury ana record kept
q Of them in the examiners office
3 The duties ~ fact, OF the state ok
n iamlnef are 10 q large cNinut similar