Evening journal., 1919-03-08
SATURDAY, MARCH 8, 1919.
DELAWARE HANKS AND ruUm SUPERVISION.


scarcely in the nature Of things that the Delaware
Legislature will fail to heed The request OF the bank
Of this state for intelligent legislation for the regu-
ation and protection Of the banking business.
One Of the best arguments thus far advanced in favor
Of the establishment OF q state Banking Department was
made by John 5 Rosse president Of the Security Trust
and safe Deposit Company and one Of Deaware's most
puhlic-sprted citizens.
Mr. Rossell said that two facts stand out prominently
IN the discussion Of the proposed legislation.
The supervision and examination OF The state banks
md trust companies through the Office OF the
commissioner have been complete failure.
?. There is urgent OF an efficient and effective
supervision and examination Of these institutions.
The once Of the Insurance Commissioner from It's
yy nature and the purpose for which IL was created
must give It's nrs attention 10 the business
md only gp secondary care oversight TO the
oankns business Mr. Rossel contonded Its duties and
responsibilities immense and flr-reaching Fully
200OoO0O0 Of insurance Of kind and another Is car
red by the people OF the STATE involving in all proba-
bility the interests, directly indirectly Of one-half
pur entire population.
Read the duties Of the Insurance Commissioner as
defined by law and you win find that in spirit and pur-
pose they most onerous and exacng and as much
as should be imposed man. he added. Then
look at the banking situation. See how il has year by
rear, become more and more serious. Bank and trust
companies have multiplied until now we have thirty
IS.
Resources have grown year by year until they have
reached over s6eOoOOOO in state banks and trust com.
sanes, and S22O00OOO N national banks splendid
showing for little State"
Mr. Rossel quite properly contends that our people
are using bank facilities for the transaction Of their
business and for the protection Of their funds more
generally than ever before 1t safe to say that more
Than $1,000 Of people are Interested directly or in
directly In our financial Institutions These figures are
ony safe estimate The actual figures would doubtless
show many more patrons Of banks and trust com
panies
1t cannot be doubted therefore. that we have de-
veoped our banking business to a high plane where Il
requires close attentonhe exclusive and guardian
ship Of competent Official, whose sole duty viii he
to be ever watchfu Of the peoples interests and upon
whom can be focused the responsibility for the well
being Of our financial institutions.
The employment Of additional force by the Insurance
to make examinations at added expense
0 the banks and trust companies Will not accomplish
be desired result. Examinations are only incidents Of
upervsion. After the examinations have been made
lany questions might arise TO the exact condition
I the institutions examined, the manner OF conducting
eir business the character OF the business in which
ley engaged and the integrity OF their manage
ent All this requires careful study and the very best
dgment that be given only by an onlcer whose |
is fixed and certain and hot divided upon
me other subject
Contention is made that It is unquestionaby the duty
the State TO exercise this and supervision over
ne corporations it has called into being and clothed
'l'h extraordinary powers and privileges the vital
fairs Of its citizens
49,. a.e MI 10 create the office Of State Bank Commits
s,aaau skes this provision 1t authorizes the commits
an H., - .e name and by the authority Of the State at
diton - " keep himself informed as 20 the true con-
sovenev - 'n financial institution and in case Of in.
'ect the depositors Oency' TO take steps to pro-
any befors .'Sen ssn pon,edy asserts ,o,, - ~ .
tried out and have ,bs nave been more horoushlv
hOhesnded men in tso sopeor' sa Of more intelligent and
Ss snG G9'e .ssss sssF1 the has bon @sn's. the sub
their hearty approval very TS. few instances 'rss has rsssi1.s by
rs last annual meeting approved s association
"Ss viib g ~ sn 1S proposal embodied the bi one dis
new era in banking. The bankers vSs WI m begin
sensbly the assurance that their individual every
oo-ordinated TO the extent Of mutual proec,ior are
misadVenfure inst might seriously AFFECT the whole boa
S~re will come about very naturally closer co-ous~s