The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1914-02-25
cred. tho bin amended and ordered to
! its engrossment
-

cred. tho bill amended and ordered to
Il itB engroSsment
Hunks In Federal Reserye Synten
SoIonei brewer called up out OF Its
order Senate bill i60. to empower banks
SSe eeon1r by the State Of virginia to
banks. Colonel Brewer explained that
In order to be effective. the act must
Virginia banks desire to make appli-
cation to enter the reserve system at
It's organization. The Efurther read
and the bill passed-ayes SO: noes, o.
The Montague Bank Bill.
Tho Montague bank bin came up as
the special order, and was debated at
iengah H. without reaching final action;
amendments offered BY the patron, Mr.
Montague. of Richmond. were adopted
Without opposition: An amendment in
creasinS the minimum capital OF
bank in country village from $4,000
10 sl5.o00 was withdrawn after objec-
seriously Interfere with business en-
terprises In small communities An
amendment providing that before any
new bank may secure a charter the
Commissioner OF Banking should make
an examination of conditions and de-
termlne whether in his judgment there
Willis said that 1t would create a mo-
nnopoiy and put II In the power of tho
me business interests Of any commun-
ity by prohibiting the establishment or
new banks. He cited an instance where
no mad himself taken stock In a small
bank. which many business men of the
community said could not succeed
which stock he had later sold at three
times Its cost. and the bank was now
q most prosperous Institution. Mr.
Gordon. who announced his opposition
20 the entire BIZ and its purport. said
mat he especially opposed the re-
quirement that would place the mum
per or banks and competition in tho
autocrat"
Dad poIicy to Multiply Banks.
Mr.. bennington defended the amend
ment It was bad policy to allow the
nanltie. ALREADY Well served. he t said,
miliar with banking or local condi-
lions to start q hank In some locality
where ,yhsd II would probably fail. BANKS
ure not only meant the loss to in
vestors. but TO depositors as well, and
tn lin5 seriHqsslS reac, on other inss
should be allowed TO open in a com
;n'nIty where there was not enough
,,,n,IG TO support 1t. or where 1t
Mr.. Robertson objected to putting ar
bi,rary power in the hands of the Com
read the bill TO show that there was
always the right OF appeal to the State
Cooperation Commission, Mr.. ,;unn
-
ton az To whether The business OF any
community would Justify the establish
sioner would have 10 inquire mainly III
eomp:ting banks The amendment was
rejected.
An amendment adding a now section
10 the bill az to holding stock in other
banks was adopted. as was the amend
ment striking, out of the bill the sec
parties who had no funds in the bank,
i0r which the amendment substituted
he present section OF the Code. Dir.
Montague agreed that the present law
new bill.
Removal Clause Rejected.
MT. Montague offered AN amendment
IN In. Article 3. section |, which reads:
The Commissioner Of Banking shall be
apprln.sd by the STATE c9rpora'en
word appointed. the CLAUSE: and may
be removed" Mr. Montague explained
that the bill itself struck out the pro-
vision OF the present law, making the
appointment for four-year term, ard
proyid.d Tor appointment by, the State
! corporation Commission with removal
Tor cause and only after due notice and
| hearing.
Then. / understand" said Judge VIII
mans. that this official Is not appoint
office indefinitely. unless rernoved?'
rhs Ies sro Vi, s Inn cred Mr. Montague
Prentis. OF the Corporation Commits
| sion.'
Hc amendment winch provides thai
the commissioner may be removed was
| rejected. u number of members evil
IDENTIFY having the impression that the
amendment provided an indefinite term
Of Office In place of a four-year term
| The Montague bin provides that the
Cominissioner Of Banking VIII have the
| aminers, clerks and stenogi aphers az he
! shall find necessary" An amendment
proposing that the appointing power be
| In the Corporation Commission as ct
| present, was rejected
| Salnry OF Commissioners.
This concluded the amendment Of
| lered by the patron or the bill. Mr..
amendins the section Of IT the A bill WHICH,
~ nfG Is. The salary of Of the commissioner
$4,000. the present. salary OF the state
BANK Examiner. The change In name
nHeed the Of BankIE
hibition against raising the salary
OF an official during his term OF office.
the salary was paid by the banks and
that the banks considered $4,000 g fair
compensation. This precipitated a
the Bureau OF Banking fund. which is
derived from a special tax on banks
Mr.. Land wanted to know whether the
commissioner. Mr.. Houston said that
they did. and that none of the expenses
Of this bureau came from State funds.
Mr. Gregory offered q substitute, fix
| ing the salary at $4,000 and striking
out the latter part of section 81. page
10, which reads reads; . and In the expenses
official bond OF himself and his exam
iners hereinbefore required" Mr..
! Gregory said that other State officials
provided their own bonds. and he saw
no reason why the State should pay
for that of the Commissioner of Bank
ing. Again the objection was raised
that the banks paid for it-that 1t
| would not come out OF the State Treas
ury.
! Says State Is Board-Ridden.
THAT has been the constant cry for
| the past ten years" said Judge Will
liams. Every new bureau and every
new department has It's bill so drawn
! that 1t is the recipient OF some special
tax. and has fund OF Its own, and is
made Independent Of this Legislature
Then II claims that IL does not have
TO economize; that. none OF Its pay
ments come out OF the State Treasury
We have the Agricultural Board with
, special tax. the Military Board with an
income OF Its own, the Library Board
| The State Is absolutely board. ridden