Atlanta Georgian. [volume] (Atlanta, Ga.) 1912-1939, 1913-04-13
Georgia Association Wants Leg
isIature to Create Department
With Power to Act.
MEASURE WILL BE DRAFTED
Superintendent and Ample Num-
Der of Assistants Recommended
for DepOsitors' Protection.


Teeth, numerous and sharp, are
what the Georgia Bankers Associa-
ton wants in any future banking leg
islatiOn
II seems certain that a banking
bill will be introduced at the COM
ing session of the Legislature. The
bankers have not attempted to draft
such a measure. but they have out
lined in detail Just what. they think
Is necessary for the proper protec-
ton Of depositors. They hope the
framer of any proposed bank law
will heed their suggestions.
The trouble is that such a meas
ure is bound to be known as a bank
bin" said f. T. Harwick, Of Dalton,
Ca addressing a meeting Of bank
ers. 1T ought never be called that
Il ought to be called A bill for the
protection of bank depositors.' The
bankers are interested in ii only be-
cause one bad bank destroys conf
ience in others. and does the pub
lie untold harm"
What Bankers Urge.
This is what the bankers want:
A Department of Banking"
am entity separate from the State
Treasurer's Office.
4 superintendent of Banks"
salary $4,000, to be named by the
Governor with the Senate's ap-
prevail to serve four years. He
must have had five years bank
ing experience. but must not
have an interest in any Georgia
bank, nor must he incur indebt-
edness TO any bank.
A Banking Board" composed
of the superintendent and two
bankers. either officers or direc-
tors of State banks in Georgia,
90 be named by the Governor,
their pay to be S25 per diem
when the board is in session; to
serve four years, but with over
tapping terms.
An assistant, and such exami-
ners as are necessary, but not
more than one examiner to every
~ banks, the salary Of the assist
ant 10 be $4,000 and of the eX-
aminers 81 800.
Graduated fees from $3.50 to
$3.50 for examinations, these rev.
enues to pay all expenses of the
department; examinations to be
semi annual, and to cost the
banks in proportion to their size.
.T.Tg . he gsHrr
Inteudent to close banks which
violate the law or the regula-
tons of the department of bank
ing.
Authority enabling the banking
department to proceed with the
liquidation of banks closed-it-
self or through agents appointed
by il.
Other Reforms Needed Also.
These are not all the changes IN
the banking laws of the state when
the leading bankers think desirable.
Many urgent reforms are not even
mentioned.
1t is agreed, however. that the most
crying need is a department with
power 10 enforce its commands. Even
the present laws might serve fairly
Well If the State Treasurer VINO now
is eN-OffiCio supervisor of state banks,
were given some sort of club to COM
pei obedience to his regulations ana
u he We're given an adequate force TO-
carry on the necessary work.
So the bankers suggest that the
Superintendent OF Banks, a practics
banker himself. be put i'm charge ana
given wide discretionary powers. IN
der the plan outlined, he would nave
the power to administer oaths 10 Of
lgrrs of banks being examined, MS
reports would be prima facle evidence
.u courts of law. he could make "such
rules and regulations as he may con-
.U-g of value To the Department OF
Banking, to be approved by inc
Board" and when these rules ana
FeIIlations were not Obeyed, he could
close the offending banks, if the two
other members of the Board Of Bank
ing concur
More Power Is Urged.
it is suggested that when the super
.ntendent believes the capital OF
bank has been impaired, he SHAH re
lIre the bank to make good the de-
71i-ncy within 80 days. If the bank
Toes not obey, he should have the
bower to close it.. within his discre-
Ition
Ia is suggested also that the Super
-tendent be allowed to take charge
r any bank when the directorate OF
he institution by majority vote re-
lests him TO do so.
| Proper restrictions are thrown
round the right Of a bank 10 resume
business, and around the paying on
+ depositors.