The Columbia herald. [volume] (Columbia, Tenn.) 18??-1935, 1914-01-09
NEW BANKING LAW
BECAME EFFECTIVE
ON NEW YEARS DAY
THE NEW SUPERINTENDENT OF
BANKS TOOK THE OATH OF
OFFICE.
LETTERS TO ALL STATE BANKS
Effects Of the Law Being Commented
on by Bankers and Finaneiers
Throughout State-No More Re-
ceivers for Banks That Fail.

Throughout State-No moro nc
ceivers for Banks That Fail.
NASHVILLE, Tenn, Jan. State
Superintendent of Banks J. l.. Hut
ton was administered the oath of Of
fee Thursday by Judge G.. N. Tillman
of the Third Circuit Court. Immedi-
ately following the ceremony Mr..
Hutton left for his Office in the First
National Bank building, where he
took up the active duties of the new
ofice. ai
Mr.. Hutton issued the following let
ter to all the state banks Of Tennes-
see Thursday:
"The new banning law BONES eff
Iective today and the state banks Of
Tennessee come under the supervi-
sion Of this department. 1t is to be
assumed that all of the bankers have
fan,iliarized themselves with the law,
and believe they will recognize that
it. Is not severe, calls for no radical
changes in what their present meth
DDS should be, and contains no arbi-
trary provision.
with many bankers over the state
l. have q very pleasant personal &C
Quaintance, and it is unnecessary, I
hope, to assure them, as ! now do
those whom have not met, that my
purpose shall be to make this depart
u,ent Is helpful as possible to the
people OF Tennessee. Good bankers
require that their competitors be
sound, and consequently any assist
ance given TO the weaker institu-
tions strengthens the general bank.
ing business and adds stability to
the prosperity Of the state at large.
while this department hopes to
be truly constructive, and proposes
to be generous as long as generosity
win be helpful, yet beg you to raj
IKE that the superintendent has no
option in snfircing the law. and I
earnestly ask that you promptly put
your bank In conformity with its re-
quirements.
.The examiners are starting out
today. They are experienced bank
men with good common sense
Please deal frankly with them.
They are required to respect your
confidence and can doubtless offsr
valuable suggestions.
Herewith I enclose several forms
which you will need later. Please
study them and hold them until yu
receive notice Of call for state
ment, but send in promptly on re-
quest
In point Of men for bank man
ayers, Tennessee has no superior; L
ask your cooperation in making it's
conditions the best in the
union
The law itself Is regarded as being
D radical step in the direction OIL
helping good banks and putting the
taboo on wildcat banking schemes
and unsafe institutions. 1t will have
the effect of putting state banks on
a par with national banks, and many
bankers regard the law as radically
different from any that has eyer
been passed in any state Of the I'M
ion. They say that the business Of
has no competition as other
and while in almost any
other business one firm delights in
the others financial difficulties it is
to the interest Of every bank In the
state to know that every other bank
ID entirely solvent and on sound
basis. The new law will KEEP close
watch on the condition Of state
banks through rigid inspection.
One Of the bost features Of ne lsw
ID that the affairs Of banks that have
failed will be wound up by the de-
partment and not by the courts, as
under the old system, in tedious and
costly receivers proceedings. The
ofaclals OF the department regard this
as ons Of the best features Of the
Law. ~