Evening journal., 1920-03-18
STEADY GROWTH
OF STATE BANKS
Increase of 100000 in To-
tai Resources Annually
for Three Years
MR.. MEDILL FAVORS
CODIFYING OF LAWS
Special TO The EvenIng Journal.

Special 10 The Evening Journal.
DOVER, Del. March is.-State Bank
ing Commissioner George L. Medill to-
day presented 10 Governor Townsend
his FIRST report as banking commits
sioner, the report covering the past
six months. Hereafter the report will
be made annually. Many interesting
facts and figures are disclosed by the
report concerning banking institutions
q Delaware Mr.. Medill says:
II have no definite recommendations
for legislative enactment TO make at
this time, but hope TO compile all the
laws relating to banks in Delaware,
and, IN cooperation with the legisla-
tive committee OF the Delaware Bank
ers' Association, TO consider amend
ments and any additional legislation
that may seem desirable, and be in
position to make these recOmmenda-
tions 81 the next Legislature. ! think
It would be well TO have all the bank
Ing laws, with such additions or
amendments, incorporated into one act.
Requests are frequently received for
Information concerning the banking
laws Of the State. and / think it desir-
hUAt 70 nave UunkAlA A04k ~ AAAe~I 80
pamphlet form for distribution.
"The banking resources or the state
show a continual growth. Comparative
statements for the past three years
show approximately si0OO0OOO Increase
IN total resources for each year. ms
increase In the banking resources or
the State Is a logical result OF the tre-
mendOus growth Of our agricultural IN
fnfnuaefa The
banks Of the State have, as a rule, kept
.apace with the expansion In the Dusi-
ness OF their customers, and by increas-
ing their capital and resources are bet
ter enabled TO meet the increasing de-
mands upon them for credit and loans
They help local development by max
mig Il convenient for farmers 70 obtain
credit and unnecessary for business
men to go away from home for bank
accommodation.
"The tax levied by the State against
banking institutions IN Delaware, based
upon the total capital stock, surplus
and undivided profits. was collected
this year by the Insurance COmmis-
siOner, having become due before my
appointment. ! observe that the Insur-
ance Department has been allowing as
a deduction. IN addition TO the county
assessed value OF the banking house,
the amount OF United States Govern
ment Securities owned. I am unable 20
find any legal authority for this.
THE Supreme Court OF the United
States has held in several decisions
that such tax on the shares OF the
capital stock OF Ssbank is not a tax
on the bank. or on its capital, and
therefore not a tax on government
bonds or other non-taxable securities
held by the bank and in which IS
caupital end surplus may be Wholly
or partially invested This is simply a
tax for the privilege OF transacting
business IN Delaware. based upon the
capital, surplus and undivided profits
In view Of this Interpretation. II VII
be necessary not TO allow government
securities oDned as a deduction. This
will increase the revenue OF the State
several Thousands OF dollars.
1T Is a pleasure TO note the fnc
spirit Of cooperation shown by the
officers and employees Of the instltu-
tions under the supervision Of this
department; also the cooperation OF
the Delaware State Bankers AssOcia-
ton"
Commissioner Medin sets forth that
the total amount OF trust funds held
by trust companies In the State Deem
ber 81. 1919, was S32.s0s ,s321l. This
Smount is held by nine companies in
all parts OF the State.
The number Of institutions super
vised was as follows: State banks. Z;
trust companies doing a banking busi-
ness, including branches, 25; savings
banks, 2; small loan banks, 2; building
and loan associations, 20; total, Sc, with
total assets OF S83,O37, 1926.
The following figures. pertaining 10
National Banks in Delaware, are taken
from the abstract OF the Comptroller OF
the Currency, Of the call OF November
~, 1919: Capital, Si,42S.975; surplus,
Si.532, 900; undivided profits, SS9S, ,4I755 ;
total deposits, Si5,2is, ,6i0S0; total as
sets, s22.OSs,S ,Ss4O6.
Total resources Of State banks, savings
banks and trust companies doing busi-
ness in Delaware on December 81, 1919,
is announced as sSO,6s4,7i005. The sur
plus fund Of State banks and trust COM
panles Is given as Sl,S29, 1923, and their
undivided profits. S22si,9is They have
demand deposits OF s36, ,i28,479, savings
deposits OF s2I,9S7 O9i.
Resources OF New Castle county banks
and trust companies are computed as
s63,29, ,66iOi; those Kent county,
$3.50, ,S2276: those Of Sussex county,
siO,665. 1877.
Mr.. Medill Is assisted by Deputy
Commissioner Ira Lewis, OF Bridgeville,
and Chief Clerk Harold w. Horsey, OF
Dover.