Imagens da página
PDF
ePub

TABLE OF CONTENTS.

Abstracts, comparative, 1889 to 1897, inclusive, state banks.............

comparative, 1889, to 1897, inclusive, national banks..

of state banks, 1897.

of national banks, 1897..

total volume of business state and national banks, December reports
state and national banks in Detroit....

[merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]

Page

26, 27

28, 29

30

31

32

33

34

35

36

REPORT OF THE COMMISSIONER.

STATE OF MICHIGAN,
BANKING DEPARTMENT,
Lansing, December 31, 1897.

TO HON. H. S. PINGREE, Governor of Michigan:

Section 43 of the general banking law of Michigan reads as follows: "On the thirty-first day of December the Commissioner of the Banking Department shall make an annual report to the Governor of the State, which report shall be published, and shall exhibit:

"First, A summary of the state and condition of every bank from which reports have been received during the year, with an abstract of the whole amount of capital returned by them, the whole amount of their debts and liabilities, the total amount of means and resources, separating the reports of such banks and other corporations, and specifying the amount of lawful money held by banks at the time of their several returns, and such other information in relation to such banks and corporations as in his judgment may be required;

"Second, A statement of the banks and corporations whose business has been closed during the year, the amount of their resources and liabilities, and the amount paid to the creditors thereof;

"Third, The names and compensation of the clerks employed by him, and the whole amount of expenses of the Banking Department during the year;

"Fourth, The amount of fees received for the examination of banks or other corporations, and fines collected and paid over to the State Treasurer."

I have the honor in compliance therewith to submit the ninth annual report of this department, containing the tabulated reports of the 177

banks and three trust companies, also data of new banks, failed banks, receiverships, etc., for the year ending December 31, 1897.

I have been in charge of this department since April 1st, last, a period of nine months. The first three months embraced in this report the department was under the supervision of Commissioner D. B. Ainger, whose term expired by resignation on April 1st.

TWO EXAMINATIONS ANNUALLY.

There are 177 banks and three trust companies under the supervision of this department. During the year all have been examined once, some of them twice and several three times. My experience as a banker has taught me that one examination in twelve months will not enable the department to keep sufficiently in touch with the changing condition of the banks.

EARNINGS AND EXPENSES OF THE BANKING DEPARTMENT.

The amount received during the year from the several banks, as fees for supervision and examination, was $9,136.66, which has been deposited with the State Treasurer, as required by section 40 of the State banking law.

The expenses of this department for the year were as follows, viz.:

Salary of D. B. Ainger, Commissioner 3 months..
Salary of J. E. Just, Commissioner 9 months..
Salary of E. A. Sunderlin, Deputy Commissioner.
Salary of L. M. Sherwood, examiner.

Salary of J. A. Latta, examiner..

Salary of T. M. Joslin, examiner.

$624 99

1,875 01

2,000 00

1,566 70

1,275 00

1,275 00

475 00

Salary of Mabel L. Scotford, stenographer.

Salary of Ella P. Jenkins, clerk...

Salaries of extra clerks and stenographers..

Expenses incurred in examination of banks..

140 00

1,099 46

2,656 69

Miscellaneous expenses, viz.: printing, stationery, postage, etc..

963 40

AMENDMENT OF 1897.

At the last session, the legislature passed an amendment to the general banking law authorizing "one or more" annual examinations, and I have adopted as the policy of the department to make at least

an increase in the force of examiners, also in the office force, thereby increasing the expenses of the department. My desire is for efficiency and thoroughness, believing that the interests of the depositors representing seventy-five millions of dollars cannot be too carefully guarded. I have met with the most courteous treatment from the officers of the banks and trust companies, and with very few exceptions I believe there is an earnest and honest desire on the part of officers, managers and directors to do all things possible for the success and safety of their respective institutions and those confiding in them.

GRAVE RESPONSIBILITIES RESTING UPON BANK OFFICERS.

Those never having been engaged in the business of banking cannot comprehend the great and grave responsibilities placed upon and felt by those who are charged with the safe keeping of the moneys of others, and this responsibility is aggravated by the pernicious custom of banks going outside of their legitimate functions and becoming borrowers of money instead of loaners only.

A BANK SHOULD BE A PLACE OF DEPOSIT AND NOT A BORROWER OF

MONEY.

A bank should be a place where the money of a community may be left for safe keeping, and this department will feel that when the payment of interest upon deposits is confined to legitimate savings deposits that a long stride has been made in the direction of safe and legitimate banking.

THE MANAGEMENT MAKES THE BANK, AND NOT THE MAGNITUDE OF ITS CAPITAL.

Many attach too much importance to a large capital. No man can carry on the business of banking for a great number of years without making the discovery that the men and the management make the bank, and not the capital. Bad management will do more harm with a largecapital than it can with a small one.

MANY BANKS HAVE TOO MANY STOCKHOLDERS.

I find in the organization of new banks by inexperienced bankers a great desire to create a large list of stockholders. I endeavor at all times to discourage this idea, as I believe it an element of weakness instead of strength. Neither do I believe in a large directorate. Concentrated responsibility usually produces better results than does the

« AnteriorContinuar »