The Madison daily leader. [volume] (Madison, S.D.) 1890-current, 1912-12-31
STATE BANKING
Tenth Biennial Report of Public
Examiner Wingfield

Mitchell, Dec. 31.-In his tenth
biennial report to Governor Vessey,
state Bank Examiner Wingfield of this
city. overs an interesting period of the
banking business In this state, as refers
to state banks. and the report indicates
that at the close of business for the
period of two years, June 30, 1912, the
banks are in a generally prosperous
condition. The report covers the con
dition of FIVE hundred state banks,
fourteen private banks and twelve trust
companies doing business in the state
on the date of the last call, June IA,
1912.
The state bank examiner makes a
number of recommendations to the
governor for action by the coming
legislative session which will be of
benefit to the state department in
helping to enforce the banking laws
of the state. AT times he is powerless
to enforce the law in certain cases. and
as a result "a bad condition will in
variably follow, particularly in the
matter of the collection of fines imposed
on banks for failing to make reports
when requested by the department.
In the case of the impairment of
capital, the examiner finds that stock
holders in the majority will refuse to
make an assessment ON the stock, with
the idea of forcing the minority stock
holders into voluntary liquidation or
submit to suspension by the examiner
The law does not give the bank ex-
amine- - intercede for the minority
stockholders and force the majority to
make concessions which make it impos-
sibleu of con6scating the minority stock.
He suggests that the examiner be
joined with the board of directors,
which would then give him authority
to levy an assessment to make strong
er the impaired capital, where the
majority refuse to so act.
The examiner makes a strong n
~tention against the lone man. bank,
as he has found il to exist in a mum
Der Of cases among the banks. He
suggests that the directors be increased
from three to FIVE, and require from
thekfive a closer attendance on the
meetings of the board of directors, as
he finds under the present conditions
but very few If any of the directors
really understands the conditions of
the bank with which they are ~associat-
ed. If the work of the banking de-
partment is to become effective the ex-
aminer believes that it should be
necessary for the directors to meet
with the examiner when he goes over
the affairs of the bank, and recon
mends that a directory be disqualified
as such when he fails to attend at least
one meeting Of the directors each year.
AS a further protection to the
stockholders and depositors. the ex.
aminer recommends the double liabil-
ity of stockholders. He finds that it
is the history of failed banks in the
revealed facts, had this been in effect
it would have resulted in the non
suspension of several of the institu.
tions which went under in the past
two years. 1t is this lack to applying
the extra liability of the present law
which has caused suspension, and
which In his opinion, could have been
obviated under the double liability.
Under the present law the stockhold-
ers are only expected 20 meet the ex-
ira liability when the conditions re-
quire it.