The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-02-12
WOULD STRENGTHEN
STATE BANK ACT
EXAMINER BARksDALE RECON-
MENDs REVISION or LAWS IN
ANNUAL REPORT.
OVERDRAWN ACCOUNTS
ADvocArEs ACT PREVENTING
LOOSE METHODS ON PART OF
OFFICIALs--As TO NEGLf-
GENT DIRECTORS.
OVERDRAWN ACCOUNTS

An act prohibiting officers of banks
from overdrawing their accounts. an
other TO prohibit banks from engag-
Ing in other business than that of
banking, except those having paid
In canftal of 100000 or more, and
a statute fixing penalty for neglect
Of duty on the part of bank direc-
tors, are among the recommends
lions pf @, c. Barksdale, State bank
examiner, In his annual report to
the StAte corporation commission.
These recommendations are made
as a result of number OF cases
which have been heard in court dur
ing the last two years In which bank
ofiiciais have succeeded in. securing
acuuittaI on the charge of embezgle-
ment and misrepresentation of funds
on account of the lax banking laws
OF the State.
Negligence Of Directors.
In several Of these cases the evil
dence has shown that the directors
Of the baussA affected had been negli-
gent In their duties. many of them
having inspected the books of the
company very infrequently. some hav-
ing seldom attended meetings and
some admitting on the stand when
testffying in cases against higher OFF,
c,als that they themselves had over
drawn their accounts.
State Examiner BarkSfiale's report
shows that 26s examinations were
made during the twelve months of
1912, which number comprises the
examination OF 244 separate and dis
tinck banking corporations and
twenty-five branches. The report
covers the work done by the bank
ing division of the State corporation
commission from January /, 1919. to
December 81, 1912. and attached are
statements showing the aggregate re-
sources and liabilities of State banks
on February 20. 1912. on April IS,
1912. ON June Ia. 1912. on September
4, 1914 and on November &c, 1912;
a statement giving list of State
each institution. the authorized maxi
mum and authorized minimum capi-
tai stock provided for by their char
tiers, and statement showing GER
tain miscellaneous statistics relating
to State hanks generally, as of Now
ember as, 1919. I
New Charters Issued.
During the year 1919. charters
were issued to the following bapks.
and, after having been examined. ~
required by section 1I55tdbs OF the
10GE, hEa II FfAYjNE OEcH dStCIAhih~
ed that all the provisions OF law
had been complied with. ana the
amount OF capital required by statute
paid In. the State corporation com
mission issued to each a certificate
authorizing the institution to COM
mence the banking business:
Milford State Bank. incorporated.
Milford; The Merchants and Planters
Bank OF Diilwyn. Incorporated.
Diilwyn: Miners Bank Of Commerce
Of coeburn. Va. Incorporated. Coe-
burn, American Bank Of Suffolk. in
corporated, Suffolk: Schmeiz Brothers
bankers. incorporated, Newport News:
The Farmers and Merchants Bank
OF Boone Mill, Va. incorporated,
Boone Mil: Bank of Commerce. In
corporated, Roanoke: Richmond Trust
and Savings company. incorporated.
Richmond, Bank of Riner incorporat-
ed, Riner: Bank of Sedley. incorpor-
ated. Sedley: The Bank OF Phenix.
Incorporated. Phenix; Sinking Creek
Valley Bank Incorporated, Newporti
The Church Hill Bank, Incorporated.
Richmond.
Charters were also issued during
the year. 1919. to the following bank
sng institutions, which, however. had
not. up to the end OF 1912. made
application to the State corporation
commission for. a certificate OF au-
thorfty to commence business: The
Anglo-American Finance corporation.
Richmond: Old Dominion Trust COM
pany. Incorporated. Richmond.
M. ,EpIlnwinx Ia tho rapport In part
My report for the year 1911 show
ed at the end OF that year that there
were 24S Incorporated banks doing
business in this State. The last call
made on the banks during 1912, re-
curing statements OF their condition
on the cIose OF business November IS,
1912. showed that there were $50
state banks doing business In Vir-
operated by colored persons.
THE aggregate Of all capital stock
paid in, as shown by the statements
OF November as, 1919. was s10.s17.-
3lS.s2; the aggregate OF the Surplus
funds was $5.7I7,7I6.la: the aggre-
gate amount reported as undivided
profits, less amount paid for interest.
taxes and current expenses. was s2.-
1ss,625.02.
Deposits and Leans.
1.-THE aggregate of all the deposits
OF all the State banks in Virginia on
that date was s57.345.sS3,e so: the ag-
grsgute yf a1i ioany and dssgvusEts was
S5T.T4s. SIS ~. the aggregate 81 an
Si0IASs pptsAS &ta0 ititAtEaECN oWINtA
by the banks was S5.T4o. 0T5,4s; the
aggregate value Of all banlSing houses
was s1s1I,7S7.53: the aggregate value
of all other real estate owned by the
banks was $si5.6S63S: the total
amount due from national hanks was
SS.262. ss1.11; the total amount due
from State banks was $1.26i. usa.Ts.
the total amount due TO national
banks was s29i.2T5.0t; the total
amount due To State banks was Ssss,-
1855 81, and the total amount of cash
ON hand was $2.50A.436.o2.
THE failure OF the Bank Of Kim
sale, Inc. at Kinsale, In November,
1912. was the only State bank failure
lin Virginia during the year.
During the year just ended the
growth in the business of State instf-
tutieus has> been quite large. and a
comparison OF the last statement in
the year 1919 with the last statement
In the year 1911 shows that total de-
posits In state institutions have in
creased s4.0sl. 56s.57. capital stock
paid In increased S591sIS3.s0. COM
bined surplus and profits increased
$65S,82o2s: loans Increased $500
322.sS, and total assets and liabilities
increased $1s10s,913.72.
From my experience with the
operation OF the banking laws as they
now stand, I deem Ii my duty TO rec
ommend the enactment of the follow
ing provisions into law.
f~tY, Sfo 10,