The midland journal. (Rising Sun, Md.) 1885-1947, 1929-05-03

These laws at present set up
under which banking is conducted In
various parts of the country since
they come from both state and 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-
Iarity 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 SINH
larities. 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 all the varia-
lions of state and federal banking
laws, Is committed to the effort to
bring about greater consistency and
uniformity among the statutes of an
these various jurisdictions. This body
7
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. It 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 ju-
dietary itself and should be complete
ly detached from all other functions
Of state government.
It is also on record as favoring the
policy that the tenure Of Office of state
bank commissioners should be 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.
1t is also a part of this policy that
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 having the requi-
site qualifications of honesty. ability.
training and banking knowledge to
larry out the duties of their offices on
he highest plane of usefulness to the
,ublic as well as to banking.
The Trend Of State Laws
The Associations State Bank Divi-
ion has recently concluded a nation
vide survey of state banking legisla.
ion and conditions and in general has
discovered definite trend along the
ollowing lines:
There is a distinct tendency among
he states to raise the minimum CAPT.
tal required for banking institutions
$4,000 and also to give the bank
commissioners or the banking boards
ole power as to the granting of char
ers for new banks, thus enabling
hem to use discretion as to the need
IT desirability of added banking facili
les or the fitness of the organizers "a
inter the banking field In this con.
aection many states are creating
'anking boards to act in an advisory
apacity with the state bank commits
toner's.
There has also been observed
endency to increase the compensa-
ion Of the bank commissioners and to
engthen their terms of office and to
1--WE them power to appoint necessary
equities and examiners so as to build
ip an adequate force to carry out their
responsibilities and duties An impor