The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1912-03-12

business. or should It be. clear that
business conditions would not war
rant tho esta bIIshment OF another bank
In that locality. Under the present
banking laws. II this office discovers
| that q bank has been most recklessly
operated, and the commission applies
to court for n receiver. the same
persons can Immediately procure an
other charter and begin business
| again.
Public Information,
| An amendmept TO section ITO of
tho Code, investing tho Corporation
! Commission with power. in Il. discrc-
ton. to make public such information
concerning any bank or banks as said
{ commission may determine would pro-
mote the public interest. The present
statute forbids any officer or employee
! OF tho State from making any infor-
nation relative to banks public. under
any conditions, save to such officers
! and employees OF tho State as may have
occasion and authority to inspect the
records containing the information in
the performance of their duty.
| An amendment to section 1850 of the
! Code, which at present requires direc-
tors to make, or cause 10 be made, an
examination "of the moneys of the
bunk, and u settlement to DO made OF
the account of the cashier" THIS Sec
| tion Is quite indefinite as 1t now stands
! and many OF the banks construe IT SIM
| ply to mean the counting of the cash
OH hand and tho proving of the
ledger. Such an examination, no nut
ter how frequently made by tho direc-
tors. II OF practically no value.
would earnestly recommend that this
section of the law be amended 80 as
to require two examinations q year by
the directors instead OF four. and that
these examinations should be made full
and complete, and especially cover the
notes; and that the directors be re-
quircd 10 specify any bad debts that
the bank may have. ] would also re-
commend that the committee in making
these examinations be permitted. If
they so desire, to secure outside assist
ance. In my opinion, two thorough and
businesslike examinations by the
banks own directors would do more
towards rcngthcning a banks condi-
tion, and bringing the directors in clos
CT touch with the banks affairs. than
any other requirement which could be
provided for by law. The intimate
knowledge OF the banks affairs which
the directors would thus obtain would
soon be discovered to he the best of
dividend producers, and the greatest
safeguard which could be devised byj
law.
Enacted Into LAW.
The General Assembly. before ad
journment, enacted into laws the fol-
lowing recommendations contained in
the report:
An amendment to section 1863. which
would permit the Corporation Com
mission TO close up an !nsolvent bank
without any notice whatever, and toI
instruct the examiner making tn ex-
animation to then and there take
charge OF the assets until a receiver
could be appointed, Under the present
law. no matter how hopelessly a
bank may DC involved in Insolvency. the
commission is required to give to it's
Ulcers and directors reasonable no.
tice not exceeding thirty days"
The enactment of a statute TO re-
strict the Indebtedness OF State banks
to the amount of their capital stock
and surplus. There is provision in
the national banking act, limiting a
banE's Indebtedness to the amount Of
it's ca pital stock.
The enactment of a statute prohibit
| ing banks from investing IN their bank
| buildings and premises ar amount great
er than their paid In capital stock UNI
diminished by losses. There Is such a
| provision in the national banking act
| end Il should. in my opinion, be incor-
| porated In the Virginia banking law