The Winslow mail., 1923-01-12
GOVERNORS MESSAGE

thorough investigation of the banking
situation in Arizona should be made
by the Legislature.
The affairs of the Central Bank Of
Arizona, later reopened under the
name of the Bank of Phoenix, IN
particular should receive your at
tention. The judge of the Superior
Court of Maricopa County, before
whom application was made for the
appointment of a receiver, mas mad
the affairs of this defunct institution
under his control for several months.
The receiver appointed by the court
made no report of the assets and
liabilities of the bank until the term
CT office of the Judge was about to
expire, in spite of the fact that pc
tition was filed with the court several
months ago requesting that such re-
port be filed.
1t is imperative, if sound credit is
to be maintained, that the banks OF
the State have the implicit confidence
OF the people, and l trust that your
investigation may be Thorough and
unbiased.
State Banking Department.
The policy paying higher salaries
to appointive officials than those paid
to elected State officials, who have
equally if not greater responsibilities
than those devolving upon such ap-
pointive officials is, in my opinion.
unwarranted.
Also the policy of fixing term of
office for an appointive official ex-
tending beyond the term of the Of
ficial making the appointment is an
unwise policy; one which does not
promote efficiency or economy.
In this connection l recommend
that the law creating the office of
State Superintendent of Banks be
amended to provide that the term of
this officer will not extend beyond the
term of the Governor making the
appointment.
further recommend that the sal
ary of the State Superintendent of
Banks be fixed at a sum not to ex-
ceed that received by elective heads
cs State departments; that the law
providing the qualifications for hold
ing this office be amended so that it
does not create little trust where
by only bankers are qualified for this
POSITION; and that the law be amend
ed to provide for the elimination of
one of the deputies, as I think there
is not sufficient work to justify the
staff provided for in the present law
Depository Bank Guaranty Law.
Several States now have statutes
which provide for a depositors' bank
guaranty law. I recommend that the
Legislature investigate the advisable
ity of such legislation and the enact
ment of such laws as will adequately
protect the funds of the depositors of
the State banks.
Protection of the Finances of the
municipalities of the State.
I recommend that appropriate legis-
lation be enacted, directing that bank
ing institutions, used as repositories
OF the moneys of the municipalities,
be required to provide an adequate
bond for the purpose of safeguarding
the deposits of public funds
CO-Operative Marketing.
Experience has proven the value
and the necessity for the cooperative
marketing of the produce of the farm
and the range. The products of the
State of Arizona can be handled most
effectively by this method Experts
on the subject maintain that proper
legislation is necessary to properly
safeguard cooperative institutions.
In the recent primary election an
amendement to the Constitution was
proposed to meet this situation. Due
to the fact that other amendments.
which would have destroyed the pro-
greasive feature in our basic law,
were before the electors at the same
time the opportunity was not fairly
presented to the people of the State
to pass on the so-called "co-operative
marketing" amendement independent
ly of the other measures
| therefore recommend that the Le-
gislature investigate the subject full
ly for the purpose of ascertaining
what additional legislation may be re-
CURED, if any, to properly safeguard
the interests of producers and con-
sumers, and that such legislation be
enacted as may be found essential.
State Warehouses.
The Constitution of Arizona permits
the State to engage in industrial pur-
suits. To render this constitutional
provision useful machinery should
he provided for carrying it into effect
The needs of agriculture. the hand
leaps under ~hich the farmer is fore
ed to labor and particularly the pro-
blem of marketing his crops, suggest
the advisability of the construction
of warehouses, by the State, wherein
the products of the farm may be safe
ly stored until the market can absorb
them, thereby preventing dumping a
greater volume of food products on
the open market than the public is
able to buy.
The farmers of Arizona who have
suffered so much during the past few
years should be assisted in their eff
forts to remove the tremendous bur-
den of debt under which they are now
laboring. | therefore recommend that
y