Vashon Island news-record. [volume] (Vashon, Wash.) 1919-1954, 1929-02-08


These laws at present set up
under which banking is conducted in
various parts of the country since
they come from both state ard fed
eral authorities. The national banks
are all chartered by the federal gov.
eminent and therefore operate ON the
same lines In every state of the
Union, but there is no such regu-
larity in respect TO the conditions
under which The state banks chartered
by the respective forty-eight states
must conduct their business, All state
banking codes. while they have stint.
larlties, also have many great dissimi-
larities In respect both to the ma.
tional bank laws and the banking laws
covering state bank operations in 9TH
er jurisdictions.
Bankers Move for Uniform Laws
The State Bank Division OF the
American Bankers Association, which
latter includes in its membership
banks of all descriptions throughout
the country subject to ali the varia-
lions of state and federal banking
laws, ia committed to the effort to
bring about greater consistency and
uniformity among the statutes of all
these various jurisdictions. This body
is conducting vigorous nationwide
campaign urging that active steps be
taken to secure greater coordination
In banking legislation. more equitable
conditions and more uniformly eff.
cient public supervision of banks In
the several states.
The organization is particularly con.
cerned with fostering this movement
to bring about more uniformly desir.
able conditions throughout the United
States In respect to the public super
vision of banking institutions by the
state banking departments. 1t is on
record as favoring the policy that the
important office of state bank commits.
sioner should be kept as free from
entangling partisan politics as the IN.
dietary itself and should he complete
ly detached from all other functions
OF state government
II Is also on record as favoring the
policy that the tenure Of Office OF state
bank commissioners should I've made
more secure and lasting than Is now
the case in many state jurisdictions
and that this important public officer
be granted sufficient compensation
and discretionary power so that the
Office shall attract and retain the serv-
Ices OF men Of outstanding executive
ability and successful banking expe-
rIence.
Il is also q part Of this policy thar
the bank commissioners ability To
serve well should be strengthened by
providing him with adequate forces OF
bank examiners. selected on the basis
Of merit from men haying the reqnt
site qualifications Of honesty. ability,
training and banking knowledge to
carry out the duties OF their offices on
the highest plane Of usefulness 10 the
public as we'll as 10 banking.
The Trend Of State Lava
The Associations State Bank nlvl
sion has recently concluded a nation
wide survey Of state banking lcgisla.
ton and conditions and In general has
discovered a definite trend along the
following Ines
There is a distinct tendency among
the states 20 raise the minimum capt.
tai required for banking Institutions
10 s2s,O60 and also to give the bank
commissioners or the banliug boards
sole power as to the granting Of char
iers for new banks. uius enabling
thom 10 use discretion a. 10 the need
IT deslrability Of added banking facnt
les or the fitness Of the organizers ~
inter the banking field. in this cnn
nectlon many states are creating
banking boards to act IN an advisory
apacty with the state bank commits.
d0ners.
There has also been observed a
endency 10 Increase the compensa.
Ion Of the bank commissioners and 10
angthen their terms 81 office and 10
rive them power TO appoint necessary
Equities and examiners 20 as To build
. an adequate flfee 30 asirf oui their
responsibilities a q i7fas an lluol
ant aagmentatisa OF the powers Of