, 1925-01-21

vision OF our Xxi laws, Doth Tor
the purpose of protecting the de-
p%ositors as fully as possible, and fol
the purpose of restoring the con-
fidence of the people in banking in
situations.
The first essential, obviously, is
the experience of other states. OF
next Importance is the expansion of
the state examiners department. so
that the law may be enforced. Then
with a fundamentally strong bank
ing law. some form of guarantee
provision should be enacted that
would provide a fund which would
operate to save the banks in time
of distress. In drafting Il new law.
however. the greatest care must De
observed not to impose conditions
that would make the transition
from the old to the new impossible
for weak institutions.
Nothing could be more helpful to
the banks themselves than n rcstor-
alton of confidence. Protection for
the depositors by q guaranty pro-
vision, based upon a strong banking
law, would restore to business chan
nels such funds as may have been
withdrawn from circulation.
The necessity Of maintaining the
various state departments at a min
imum of expense makes it seem m
advisable at this time to establish
a separate department of banking,
but the powers of the state exam
iner should be broader. Provisions
should be made whereby the banks
should pay a reasonable fee for
necessary examinations. With the
number of banks now operating in
the state, this would produce q e V
enue of approximately $12 10000
annually, which would cover a large
part of the expense of his depart
ment. but additional funds should
be appropriated to enable the de-
partment to meet the requirements
of the law. 1t is a physical iInpos-
sibility for the examiner with his
present force to examine thoroughly
all the banks, counties. school dis
t%ricts, public institutions and other
offices as provided by law. Notice,
however, should be taken of the fact
that during the past two years
under the efficient administration of
the examiner nine banks that had
been closed were re~-organized, and
in at least six other cases, banks
which were on the verge of closing
to the great loss of the communities
they served were consolidated with
other institutions, and the deposit
ors saved. Had the examiner been
provided with enough assistants,
other institutions could likewise
have been saved l have no hes
itation in recommending that the
salary of the state examiner be in
creased so that the state may COM
mand and retain the services of an
examiner of ability and standing.
To represent the state in this ca
pacity. we should have not only a
competent and trained accountant,
but an able executive a. well.
In the preparation of the new
banking law, the provisions of the
present statute requiring the segre-
cation of savings deposits from 9TH
ell deposits should be made effec-
tive by adequate penalties, so that
no banker would dare to disregard
the law.
Conclusion q
Within the compass of this mes
sage. it has been impossible to dis
cuss all the phases of state govern
ment that will claim your interest.
There r Furthermore, many fea
lures of the work of the various de-
partments well worthy of public
recognition and which l should have
taken satisfaction in mentioning,
had it been possible to do so with
out unduly extending this paper. 1
have confined myself to those sub
jects which seem to me to be of
greatest immediate Importance.
Other matters will suggest them
selves to you for legislative action.
You have come from all parts of
the state. from among the people of
every section. and you best under
stand their needs and desires. In
the enactment of any legislation
designed to promote the welfare and
happiness of the people of Wyo-
ming you will at all times have my
sympathetic cooperation. 1t is my
purpose, as l know it is yours, to
hold their interest and welfare par
, amount to every other consideration.