Nogales international., 1932-04-09
Then And Now

It would be ar3ls ng, were it not SO serious, to
tie activities of certain members OF the state
legislature in going about the state advocating re-
vision of the banking laws and comparing their pres
ent utterances with their past records.
When the Tenth state legislature convened III
regular session in January, 1881 Governor Hunt, III
his message, recommended rather complete revision
of the state banking laws. He went further and pre-
scented bills to the legislature incorporating his ideas
on the subject
After calling attention to the series of bank fail
ures which had taken place in Arizona. as il other
states Of the union the governor recommended that
private deposits III state banks shoud enjoy the same
degree of protection as public funds. FtAgAA8At
He advised the legislature to amend the law SO
that the double liability due from stockholders could
be collected. He recommended that the minimum cap
itaization of banks be raised from to co.
00000 He asked that the law be amended provide
that all times there should ice minimum OF five
active directors of each bank resident no the state.
He asked that The legislature make it clear viola
ton Of the law FOR banker deal in second mort
cages except further secure loans previously
tracted. He urged that the legislature adopt code
clearly segregatng savings deposits from CONNER
cial deposits < !" e 3sg' 4 ..e. ~s
He recommended that the penalties for the viola
ton Of the various provisions of the banking statutes
be made more severe with reference to officers and
directors Of banks He asked that real estate business
and residential property owned by banks be taxed on
the same basis as similar property owned by others.
AS further security to depositors Governor
HINT recommended that banks Be prohibited from
permitting an over draft III any form to anybody
Governor Hunt asked the legislature to reduce
the legal rate Of interest ia Arizona from ten to eight
per cent this rate to include all fees of whatever ma
lure 2
Prior to the converting Of the legislature, Cover
nor Hunt nstigated several conferences with lead
ing bankers Of the state These conferences were aim
ed 10 enlist the cooperation Of the banks ii his plans
fer strengthening the banking laws Of Arizona and
obtaining closer and competent state supervi-
sion Of banks. Leading bankeIs called into these con-
ferences showed considerable interest in the program
tilfhe matter Of reducing the legal rate of interest
was broaehed Then they appeared to turn cold on the
Proposition OF anyFeVison of the banking laws, al
though they admitted there was grave need for such
revision. Seemingly the bankers feared that if the
legislature began amending the banking code, the e-
gal rate Of. Interest might be reduced.
None of theareeoninendations Of Governor Hunt
Ionatrengthening the banking laws Of Arizona were
adoptedby thtpreset legislature The bills which he
had prepared and Introduced in the regular session
could find very few advocates or champions.
None oEthe members of the legislature who are
NOW 80 yQeifersly telling the voters that the bank
i1g laWsnead strengthening showed and sol etude in
the matter when the golden opportunity was offered
It's within the realm Qf probability that some Of
these meEbers OF the legislature, who are now seek