The Richmond Virginian. (Richmond, Va.) 1910-1920, 1913-02-12

that the name OF the institution
should contain both the words bank
and trust
20. The enactment of statute
clearly specifying the powers of trust
companies. and defining the nature
of the business in which they shall
be authorized to engage.
80. A statute to prohibit officers of
banks from overdrawing their ac-
counts, and prescribing penalty
therefor.
II. The enactment of a statute
somewhat similar to the statutes in
New York and other States. fixing a
penalty for neglect of duty by dtrec-
tors in cases where banks become in
solvent and directors have wilfully ne
elected to perform their duties as re-
quiTed by the statutes.
-. The enactment of q statute re-
curing all banks to maintain an ade-
auate reserve. The present law is ST.
lent on this point.
AS to Liabilities.
IS. An enactment to section 1884
of the code, providing that the total
liabilities of any corporation or per-
son to any bank shall not exceed rs
per centum of It's capital and surplus,
excluding. in computing this rs per
centum, bills of exchange. drawn in
values, and also excluding paper Sc
cured by warehouse receipts, the ac-
tual market value of such stored pro-
ducts being Is per centum In excess
of the amount loaned. Section 1164,
as ii now stands, limits one persons
or concerns liability to any bank to
IS per centum of the capital and sur
plus, exclusive Of bills of exchange
and commercial or business paper
hs,4 mi fray To hs
exceeded without limit upon the
adoption of resolution signed by a
majority OF the board. The present
statute. In my opinion, is far too lax.
and places no restriction whatsoever
upon the board OF directors in the
matter of excessive loans.
81. An amendment to section
1854 to prohibit banks from loaning
money upon the collateral security OF
their own capital stock. There la
such provision in the National bank
ing act, and 1t should, in my opinion,
be incorporated into the Virginia
banking law.
IS. An amendment to the present
act. providing that any bank desir~
ing to organize shall, before COM
nienefng business. procure from the
corporation commission a certificate
authorizing IL to do so: so as to re-
auire that a thorough examination
shall be made into conditions. and
the character OF the persons desiring
to organize. and authorizing the cor
poration commission to refuse to is-
sue such certificate, should the char
aeter Of the persons be shown to be
such that. In the judment of the COM
mission. they are not proper persons
TO engage In such q business, or,
should 1t be clear that business con-
ditions would not warrant the estab-
lishpent of another bank In that To-
cality Under the present, banking
laws, II this office discovers that a
bank has been recklessiy operated.
and the commission applies to a court
for a receiver. the same person can
immediately procure another charter
and begin business again
49, An amendment to section
11T0 of the Code, investing the cor
poratien commission with power. In
its discretion. to make public such
information concerning any bank or
banks as said commission may de-
ternnine would promote the public In
terest. The present statute forbids
any officer or empfoye of the State
from making any information. reia-
tive To banks. public. under any con-
ditions, save such officers and en-
plcyes OF the State as may have ac-
casion and authority to inspect the
records containing the information In
the performance of their duty.
10. The enactment of statute 10
restrict the Indebtedness of state
banks to the amount of their capital
stock and surplus There is a pro-
vision i'm the National banking act.
limiting banks Indebtedness to the
amount of its capital stock.
St4 AR armand m ~Qcfinr
11sa Of the Code. which at present
requires directors to make, or cause
to be made. an examination of the
moneys Of the bank, and a state
ment to be made OF the accounts of
the cashier" This section Ia quite
indefinite as 1t now stands. and many
Of the banks construe 1t simply to
mean the counting OF the cash on
hand and the proving of the "cashier's
account" on the general ledger. Such
an examination, no matter how fire.
quently made by the directors. is oil
practically no value. l would earnest
ly recommend that this section OF
the law be amended so as to require
TIVE examinations a year by the direc-
tors instead of four. and that these
examinations should be full and COM
plete, and especially cover the notes
ana that the directors be required to
specify any pad deuLS tnAt the pduk
may have would also recommend
that the committee in making these
examinations be permitted. IL they
30 desire. to secure outside assistance.
In my opinion, two thorough and
business-fike examinations by the
banks own directors would do more
towards strengthening q banks con-
dition, and bringing its directors In
closer touch with the banks aaffirs,
than any other requirement which
could be provided for by law. The
intimate knowledge of the banks at
fairs which the directors would thus
obtain would soon be discovered to
be the best OF dividend producers,
and the greatest safeguard which
could he devised by law.
I'll gives me great pleasure to COM
mend all those serving with me In
the Banking Division for the con-
slant and faithful performance Of
their duty. and the energy and In
terest displayed by them in their
work.
s..All az which is. respectfully. aah-
sc. C, BARksDALE.
Chief Examiner. y