The log cabin Democrat., 1915-08-19
BANK COMMISSION DOES GREAT WORK IS FREE FROM POLITICS REMARKABLE RECORD FOR EFF FICIENCY MADE BY NEW
 STATE DEPARTMENT.
BY CLIO HARPER.


 Little Rock, Aug. 12.-A depart
 ment of the state government that is
 notably free from political taint or
 influence is the State Bank Commis-
 sion. It is in the hands of capable
 bank men, selected for their knowl- edge of the banking business, rather than for political pull. It has main tained this high position since it's or ganization, and the results show that it has accomplished world of good.
 The commission has stableized the banking business of Arkansas as never before. The system adopted of requiring the publication five times a year of the detailed condition of the more than four hundred banks sub- ject to it's jurisdiction has had most salutary effect. Its bank exam iners, corps of men who understand the business, are constantly at work, an dno feature of the business of any bank, however small, escapes their scrutiny. The consequence is that many weakening bank has been strengthened by the removal of con- ditions causing their weakness; and when, in a few instances, they could not be saved, they have been taken over by the commissioner and man. abed for the best interests of the de- positors. There are fewer failures under this system. Sometimes fail ko ok hxr its business liquidated and no one loses by the transaction. When gone too far to be saved, the commission by careful management of it's assets has succeeded in repaying the cred itors all, or nearly all, their claim. It is the policy of the commission to safeguard the interests of the depos- itors at all times, and reduce to a minimum the possibility of loss. It has been found necessary in some in- stances to resort to the 100 per cent assessment on the stockholders in or der to meet the liabilities. This is one feature of the law that has not bee ntested in the courts, and an ef- fort has been made to get it into the supreme court. The stockholders of a defunct Argenta bank are resisting the payment of the 100 per cent as- :sessment, and suit is to be brought against them, which will be fought through the circuit and the appellate courts.
 The commission is making fight for a more conservative management of the banks. 1t has brought about a reduction in the overdrafts, for in- stance, from nearly three million dol lars to a little more than S1OO,OOO, and it has assisted in maintaining the surplus at considerable more than is required by law.
 one oI tfiae most important features 'f the commissions work is the Blue Sky departnfent Originally part 'f the auditor'S office, it was trans erred to the BaAlk Commission as the nore appropriate1 authority. Its main purpose is to prdktect the citizens of he state from tha sale of worthless 'tock in oil, gas, mining, and other industrial concerns B in other states hat may or may not have any value. The law requires that all such com fnies offering stock for sale in the tate shall be eEamined and author zed. Heavy pfenalties are provided or agents or Representatives re who sell tock without first securing author ty.
 The departm1 ent now has under con- ideration oIhdition that has arisen t Hot SpringsA where during the last CIV weeks ha4f a dozen Louisiana concernshavef been offering and sell ing stock Wlthout authority. It costs about $50 for legitimate company |o get into the state properly, and an i &llegitimate concern cannot get Tn l |any price. The department has fur tlished the prosecuting attorney at Hot Springs with the names of the Unauthorized companies that have 1een doing business there, and it is Expected that there will be number
 # prosecutions, probably several hun kirad as a result