Macon beacon. [volume] (Macon, Miss.) 1859-1995, 1915-01-22
Bank Inspection Rigid.

/ -
Jackson dispatch of recent date
says the three state bank exam
iners, each of whom has complet-
ed his first round of examinations
and has begun on the second
round, but in different districts,
as the law requires that no ex-
aminer shall examine a bank
twice in succession, will be the
businest men in the state for the
next few months. AS stated by
these officials in a general letter
to the banks in their districts the
preliminary examination W s.
more by way of a preparation for
the real and rigid scrutiny which
is to follow. The law directed
the examiners to proceed. with
out loss of time, with the exami-1
nation of their district banks, and
this was before they had gotten
control Of all the details of pro-
cedure as written in that volum-
nous law. The second will be
very rigid, as it will be prelimin-
airy to the Inauguration of the
guarantee provisions, which are
to be made effective May Is, next
and will be statewide and COM
pulsory.
Taking the letter addressed by
Examiner j. S. Love, Of Hatties-
burg, as sample of those which
have been sent out generally |
throughout the three districts,
the following paragraphs will be
of general interest:
On the next examination
the value of the securities,
collaterals and mortgages to
your loans will be very care
fully studied and questioned,
and, where not sufficient in
the opinion of the examiner
you will be INSTRUCTED to re-
duce the amount of the loan.
SO, III order to have these
matters in shape to meet the
test, please call your direc-
tors or loan committee at an
early date and have them go
through your notes, examin-
ing each note and its securi-
tycarefully, getting sufficient
security, or charging off any
notes not amply secure, and
all doubtful paper. Please
remember that past-due notes
are prohibited and will be
very closely watched by the
examiner.
Remember the war is on
against overdrafts. These
are the worst menace to
banks, and have caused even
tually more loss than any
other one thing in banking.
The examiners are pIsaibit-
ing overdrafts and eIpect
them to be eliminated.
THE first of the year is at
hand when dividends are US
ually declared; but when
have the banks in Mississip-
pi been confronted with such
conditions as they are now
facing? With business con-
ditions unsettled, the farm
ers and merchants unable TO
meet all their obligations
Though they may in some
instances be holding cotton),
the banks can hardly expect :
not to have some losses with :
in the next few months or a
year; and under such condi-
tons and the probable re- :
auctions which may come IN
der the next examination. r
want to not only suggest, r
but request, that no dividend :
be declared for another
year, but, should you declare q
a dividend under these con- q
ditions, be sure that YOU "
have first complied with sec
tons 40 and 81 of the new .,
law" a .,
1t is understood that in many "
asses so far as heard from, the q,
cards of directors have acquies- ~
ed IN the suggestion as to with r.
oIdng dividends, and instead !, 10
AIRY ing the amounts which ~ ~
'ould be Sc declared and written as
ITO the books 10 surplus account a.
1 fact, none of the exaninars ~ ~
opear to have encountered any 81,
in conducting the sup 9 -,
vision of banks, after the banks =
lemselves have acquired full A,
of the law and its re-
lirements. TT
The Stork.