The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1925-04-24

a bank in Montana:
About $50 bills were introduced and
considered by the Nineteenth Legisla-
tive Assembly. These measures COW
cred a range of subjects embracing
every activity in Montana; from Gre
lating to Leaving State to Visit Prize
Fights" "Relating to Riding Faster
Than a Walk" Relating to Changing
Name Crooked Greek to SakakaWea
Creek" Relating to Damage Incur
red in Duel" Requiring Entire Time
Domestic Servant to Master to
dozen or so bills regulating banking
in various ways, including a guaran-
tv of deposits law, bills proposing all
sorts Of changes in the organization
of our state government, various
highway measures, an elaborate COM
pensation bill, and many cThers.
Banking Code Commission
The most important banking bill
passed by the last session Of the legls-
Iature was House Bill No. 270, which
will be Chapter 1873 of the Laws of the
Nineteenth Legislative Assembly, pro
viding for the appointment OF a
banking and building and loan asso-
citation code committee which is to be
known as the Banking Code Com
mission of the State of Montana"
The board is to consist of three mem
bers. all to be appointed by the COVER
nor. Each member is to be paid Tor
actual travelling and other necessary
expenses and a compensation OF So.OO
per day while actually engaged IN the
work of the commission.
The commission is authorized to
elect one of its members as chairman,
to employ or appoint a secretary and
such other employees or advisers as
it may deem necessary. The purpose
of the commission as provided In the
law and as contemplated by Governor
J. E. Erickson, who recommended such
a commission in his message to the
legislature, is to investigate the bank
ing, building and loan association
and financial laws of the State O1
Montana the several states, and OF
the United States, and from their IN
vestigaticns to prepare new banking
code to submit to Governor Erickson
on or before November L, 1926, which
banking code will then be submitted
to the next session Of the legislature
An appropriation Of $4,000 IS pro
vided to meet the costs of the com
mission.
No appointments for the banking
code commission have yet been an
nounced by Governor Erickson. ThOs
close to the administration feel conf
dent that he governor will name rec
Ognized bankers on he commission
and that their work will result in tn
preparation of a thoroughly complete
modern, sound and strong banking
law for the State of Montana. At
tempts have been made at variou
times to rewrite the banking laws bu
it has been found impractical to pre-
pare a new code in the limited tim
available for such work during a leg
islative session. 1t is believed that b,
this means a sound and complete Law
can be prepared. Bankers through
out the state are highly pleased tina
the recommendation of Governor Ell
ickson for a Banking Code Commits
sion has been followed out by tn
legislature.
Collection of Checks
Senate Bill No. 81, which will b
Chapter 65 of the Laws of the Nine
teenth Legislative Assembly, amend
Section CLOS of the Revised Codes 0
Montana to read as follows:
"Section CLOS. Any bank operatin
in the state of Montana and receiy
ing fer collection or deposit any chez
note, draft, or negotiable instrument
may send such instrument for cOlleC
ton directly to the bank on which
is drawn, or at which it is made pay
able and accept In payment thereto
a check or draft of said bank, and IL
failure of the bank to which such itel
is sent for collection to account fl
the proceeds thereof or for any chez
or draft sent in payment thereto
either because of its insolvency {
otherwise, shall not render the fo
warding bank liable therefor to IL
depositor of such item, nor shall tt
drawer of a check or draft sent
rect to the bank on which same
drawn and RENTED for in the mannt
above provided for be released fro
liability for the amount of such iteT
to the holder thereof, provided how
ever, that due diligence in. makir
collection has been used by the hOI
er, or holders, of such item, and pr
vfdes further that the drawer sha
have been notified by notice appeari1
upon deposit tickets or advices--
credit that his account has been a
cepted by the drawee bank pursua
to the above provision
The amendments to the old law (e
cept a slight, immaterial change
wOrding) are shown in bold face.
All bankers will appreciate the pu
pose Of the amendment to this sectio
in that it now specifically authoriz
the acceptance of a draft in payne
for remittances without liability
any collecting bank except for neg
gence.
The last part of the section reouir