The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-11-04
BANKERS MAKE
SURVEY STATE
BANKING LAWS
Urge That Office of Bank
Commissioner Be Freed
From Politics

New York, Nov. "A survey OF
state banking laws conducted by the
State Bank Division of the American
Bankers association shows marked
progress toward greater uniformity
ana more efficient bank supervise on,
it is declared by Frank W. Simmonds.
in charge of the division, in "A state
ment giving the results OF the inves-
tigation. He says that the movement
for state guaranty Of bank deposits
appears to nave gone into eclipse.
"The division has urged that the
office of bank commissioner be freed
from politics and all other functions
of state government, and tenure be
made more secure with sufficient
compensation and discretion to at
tract men of outstanding ability" Mr..
Simmonds says. "Gratifying progress
has been made during the past year
in important bank legislation in many
states. Idaho, Wyoming and Oregon
led the list by adopting entirely new
modern banking codes, while Texas,
and Montana have new codes in prep
aration.
Laws Should Be Uniform
"The survey shows that it is gen
orally agreed there should be high
degree of uniformity among the
states in laws dealing with certain
fundamental principles Of bank or
ganization, regulation and supervi-
sion, and that there is strong ten
dency in this direction. We find a
very definite trend toward increas-
ing the minimum capital require
ments of banks to $4,000; creation
Of banking boards to act in an ad
visory capacity with the state bank
commissioner; and legislation en-
powering bank commissioners to take
complete charge of insolvent banks
and to liQuidate them as distinguish
ed from liquidation through the
courts.
ave find also trend toward leg
islation providing for closer supervi-
sion and regulation Of building and
loan associations; more equitable
taxation Of bank stock; legislation
providing for merger, conversion OF
consolidation of banking institutions;
the legalizing and regulating of what
is known as departmental banking:
broadening the field for investment
Of funds of saving banks and trus,
companies; and increasing the power
Of the bank commissioner as to grant.
ing or denying charters for new
banks, and authorizing his making
reasonable rules and regulations gov
erning bank management and pre-
scribing penalties for the violation
thereof.
additional general characteristics
of state ban.: legislation are for in
70. ilnr TIE compensation of the
bank commissioner and lengthening
his term # office of four, five or six
years, with power to appoint neces-
sary deputies and examiners; legis-
lation providing for the reduction of
mandatory bank calls to three and re-
ducing the number Of examinations
required by law annually to one;
making issuance Of worthless checks
a misdemeanor; limiting or prohibit
ing an officer or director of bank
borrowing from his bank unless his
collateral is approved by majority
Of the board Of directors; and limit
ing or prohibiting the opening Of
branch banks.
Abandoning Guaranty Plan
"The question Of state guaranty Of
bank deposits appears this year to
have passed intn I'm eclipse. SO far as
tho extension sf The i1sa III eenceln-
ea, notwithstanding the fact that