St. Tammany farmer. [volume] (Covington, La.) 1874-current, 1912-05-04
BANKERS
CONVENTION
Message Of President Gott-
lieb Warmly Received.
Banks of State are Divided
Into Six Groups.
Harvey E. Ellis Made Chair
man of Group E.
Banquet Largely Attended
and Brilliant Success.

and Brilliant Success.
The following is a continuation OF
the proceedings of the Bankers AS
sociation taking place after going te
press last week:
MIR. GOTTLEIB'S ADDRESS.
Mr.. Gottleib spoke in part as fol.
lows:
Reviewing the happenings of i'm.
portance pertaining to banking in
Louisiana, there has been an increase
in the number of banks from 1877
March, 1910, to 2O8, Dec. 2S, 1911;
an increase in capital from $13,413,-
900 to $13,S51 900; there has been
an increase in gross assets from
$11O,268,439, March, 1910, to $127,-
$4,000, Dec. %, 1911, and there
has been an increase in deposits of
$12,729,3S1. When it is consider
ed that Louisiana has been more Sc
riously affected by the boil weevil
than any other State in the South,
from a crop of 979, 900 bales of cot,
ton in 1906 to crop of 1885, 900
bales in 1910-11, representing loss
of millions of dollars; when it is
considered that the sugar cane crop
OF our State was badly damaged by
the early freeze of last November,
and that the rice crop was compare
lively small, it is gratifying indeed
to note the healty growth of our fl
nancial institutions throughout the
State, not only in numbers, but in
assets, deposits and capital.
Louisiana is essentially an agricul-
tural State, and until her Idle and
unreclaimed lands are made to re-
spond to the agriculturists, we can
never hope for our fullest measure
of development
II Louisiana is to have it's full.
share of the extraordin deve1epss
: -mcnt ~comfng 20 our Southland, and
the marvellous increase of wealth that
properly belongs to her people, much
will depend upon the banks and
bankers of this State. But banking
should not be made onerous or bur-
densome by excessive fees for exami
nations nor by excessive taxation,
which in my opinion, is condition
that obtains in Louisiana to-day.
Take, for instance, the cost of bank
examinations in this State compared
with all other States of the Union
having a banking department or aN
officer charged with bank supervision
and we find that the cost per thous.
and of assets is $0.O67, for State
banks, and $O.O47 for National
banks, while here in Louisiana it is
: $0.175.
COMPARISONS.
.l- MT,
ly three times as much for bank ex-
minaticn as Is being paid On an av-
erage in group of forty-one other
States of the Union. To be exact,
there was paid into the State Treas
ury under Act No. 112 of 1910, by
the State banks, $22,225 for exami-
nations for the year ending Dec. 81,
1911, while the total assets of date
Dec. 2S, 1911, were 1927, $4,000. or
an average cost Of $O.175 Fer $1,000
of assets, as stated above. While
this is no criticism of the banking
department. nor do l know of any
complaint or dissatisfaction with the
thoroughness OF efficiency Of the ey~
aminations, hold that the State, not
the banks, should pay for these ex-
aminations, or, if the State will give
us no relief, that the present law be
so amended that the fees to be paid
be fixed at a rate per $1,000 of assets
that will provide the necessary funds
for the proper maintenance of the
banking department. A bank of
$4,000 assets should not pay $50
for an examination when a bank of
100000 assets pays the same
amount, nor should a bank with
100000 assets pay as much as a
bank with $1,O00,OO0 assets, as OBJ
tains now. The fees should be based
en- mi!lage. per $1,000, so that the
cost of examinations would be in
proportion to assets.
In this connection and aside from
the matter of costs of bank examine
tions, whether paid for by the State
and purpose of this ponderous and
important branch of the State gov
ernment is to protect and safeguard
the interests of the stOckholder, de-
positor and community in general
against dishonest bank management
which mfans embezzlements, defal-
cations, shortages and misapplica-
tion Of funds-or, in word, thiev-
cry.
If, however, such irregularities or
crookedness is only discovered after
banks capital, surplus, undivided
profits and-as in the case of the
Teutonia Bank and Trust Company
of New Orlcans-50 per cent of its
deposits have been dissipated, then
such examinations and supervision
fail of their purpose, or the law is
inadequate to protect the people
from such dishonesty. This associa-
tion should go on record as favorine
more stringent laws pertaining to
bank examinations and supervision
and to clothe the officials in charge
Of the banking department of State
with such opportunity as will better
safeguard he public.
With reference to taxation under