The Alaska daily empire., 1915-03-02

af ia done by tho Comptroller oi lAe Currency in the case Of National banlk5 under bis a0perYleion. Ns must slp- nit that the Banking boatd or Alasle. has no means of ascertaining tho enn- dltion of banks withlu the Umted States as has tpo Comptroller or the currcncys is in no position to approve or diBapprovo oi such banks aa re. serre Repositories, and should there fore be relieved from such duty 10 this connection. There kaa leeu no attempt made by the Board 60 dcsig- nAte reserve Repositories loc tho banks under its superSlsion, nor has any a2. proyar beon made Of tho dcpositories at present used by thc respective banks of the Territory. il is recom- menoed that this portion of Section % Of the Act De amended to read, "Or In depositories located at commercial centers in the United States"
 Branch Banks.
 A branch bank is defined in the last sentence Of Section 2 of the act as follows;
 "rhe torm branch bank used
 ln this act shah bc taken Co mean
 an office of DEPOSIT OR DIS
 COUNT. other than the banks
 principal place of businessn
 The same section provides that the 'stn "tLnS used in tte act shall be rakeu Go mean aud Include every cor. ooration, domestic or foreign. except National banks, and al partnerships and individuals transsctlng banking business In this Territcry. Banking Is defined as follows
 "The term banking within the
 mea-ing Of this act shfil be deem-
 ed and taken to mean the nego.
 tiatlon for, and the discouating
 of promissory notes, drafts, bills
 o, exchange and other evidences
 of indebtedness, receiving depos-
 its selling and buying excauge,
 goid dust. coin and bullion. and
 leaning money on personal real
 and other security. and other kin
 dred financial operations.
 Branch banks are mention in sever. ai other places Of the net, and it is inferred that the acts provisions in- tend an extension or business by the banks or the Territory through branch. es limited to the Junction of DEPOS- TT AND DISCOUNT.
 IL Is very doubtful if branch banks limited Co these functions win be of material benefit in extending the buBi- ness or banking in the Territory. The adv'sabilty of permitting banks or small capital Co extend their business by an unlimited number of branches is also very doubtful The Alaska Banking Act is patterned after the banking acts oi many of the States. which, In turn, are patterned after the National Banking Act The principal ot the latter are opposed Co a branch banking system. TO oper- ate branch banking system under a law the underlying principle Of which Is opposed Co such systems. is likely Co prove very unsatisfactory. It would bo difficult for a bank having @ nun. Der Of branches Co make sworn state ments and published reports of its true condition on days designated In calls issred by the Banking Board in accordance with provisions of Sec ! lion 27 Of the Act. Section 29 of the net provides for examination or banks l and prescribes fees for the same. but makes no provisions for examination | of branch banks Doubtless many dli- 1 faculties would develop as the system | enlarged It Is recommended that the 1 Branch bank" feature be eliminated | from the present law. or. if such sys- 1 tenn is desired, that an entirely new law be enacted: one that will har- monize with such a system.
 Collateral Security
 The act at present contains no pro ] visions relative Co assignment by the ! banks Of their assets as collateral se- ! ,urity to secure or give preference tc ! certain depositors or creditors r. isl that the act Do amend | cd in this particular
 Limitation of Loane
 Section l7 of the net provides that t shall be unlawful for any officer or employee of any bank in Alaska to oan funds of such bank in an amount | exceeding one thousand dollars to any person or firm without first having obtained tho approval Of such loan | rom the board of directors Of such hank. or a committee of said board. consisting of not less than three mem 'ers thereof Other than gaining the consent of the board of directors. or } committee of such Board. there is no imitation placed upon amounts which nay be loaned by hanks in Alaska Co my person or company corporation 'r firm it Is recommended that the .ct be amended in this particular
 Actions, Suits or Proceedings
 Section S3 of tue Act provides that .n actions, suits Or proceedings 'rought under It's provisions shall be conducted by the United States At- orneys of their respective judicial dl. 'islons. As has been previously men- toned in this report. this section was nade Invalid by ruling of the United 'tates Attorney General Since the uling Of that official wns promulgat-l