INCREASE AND DECREASE OF CAPITAL STOCK. Conforming to the requirements of section 10 of the banking law, the following banks have amended their articles of incorporation with reference to capital stock: The German American Bank, Detroit, $150,000 to $250,000. The Dime Savings Bank, Detroit, $250,000 to $500,000. The Bank of Saginaw, Saginaw, $200,000 to $400,000. The Superior Savings Bank, Hancock, $50,000 to $100,000. Boyne City State Bank, Boyne City, $25,000 to $50,000. People's Savings Bank of Cadillac, Cadillac, $50,000 to $75,000. Commercial Savings Bank of Grand Rapids, $200,000 to $100,000. St. Clair County Savings Bank, Port Huron, $50,000 to $100,000. State Bank of East Jordan, $20,000 to $50,000. Munising State Bank, Munising, $30,000 to $60,000. The above constitutes an increase of $713,000. The increase in capital stock, on account of organization of new banks during the year, amounts to $2,355,000, making a total increase in capital stock for the year 1907, of $3,068,000. The failure of the Chelsea Savings Bank, Chelsea, and liquidations for the purpose of consolidations have caused a shrinkage in capital stock of $1,700,000, thus leaving the net increase at $1,368,000. LIQUIDATIONS AND CONSOLIDATIONS. The State Savings Bank, Detroit, and the People's Savings Bank, Detroit, were, on January 8, 1907, consolidated. This consolidation took the form of a new organization known as The People's State Bank, Detroit. For the purpose of consolidating with the Bank of Saginaw, Saginaw, the stockholders of The Savings Bank of East Saginaw, Saginaw, on March 30, 1907, voted to go into liquidation. On April 19, 1907, the stockholders of the Bank of Saginaw, Saginaw, voted to consolidate with The Savings Bank of East Saginaw, Saginaw, such consolidation being consummated May 4, 1907. EXTENSION OF CORPORATE EXISTENCE. Acting in compliance with the provisions of act 143 of the Public Acts of 1899, the following banks have extended their corporate existence for the period of thirty years from and after the dates mentioned: Michigan Savings Bank, Detroit, February 19, 1907. OTHER AMENDMENTS TO ARTICLES OF INCORPORATION. The Saginaw County Savings Bank, Saginaw, by a vote of its stockholders taken on January 8, 1907, amended the original articles of incorporation so as to permit the transaction of both a commercial and NUMBER OF DEPOSITORS. The total number of depositors in the 328 State banks and 93 National banks on December 1, 1907, was 847,695, as follows: State banks, individual deposits subject to check. State banks, savings certificates of deposit.. National banks, individual deposits subject to check. 101,485 35,964 423,504 100,197 129,825 56,720 The following table will show number of commercial depositors and savings depositors in the 328 State banks and 93 National banks, together with amount of deposit and average amount to each depositor: *This includes certificates of deposits; several certificates issued to one person counted as one. While the depositors in incorporated banks in Michigan have increased 99,506, yet the average to each depositor has been decreased about $47. This decrease is accounted for by the large increase in depositors, and the decrease in the total amount of deposits in the incorporated banks. Commercial deposits in state and national banks show a decrease for the year of $11,333,740.35, while savings deposits have increased in the same period $9,459,115.94. A comparison of the total deposits in the incorporated banks, however, shows a decrease of $1,874,624.38. This decrease in deposits occurred between the reports of August 22 and December 3, 1907, as the former report showed an increase over the last report made to the Department in 1906. GROWTH OF STATE BANKS. Since the organization of this department, 1889, the increase and growth of business has been very great. Loans show an increase of $167,925,801.67, and deposits, $174,038,068.20, as will be seen from the Between the August 22 and December 3, 1907, reports, which was the most stringent period in our recent financial flurry, loans, discounts, bonds, mortgages and securities decreased $7,746,458.66, while commercial and savings deposits decreased $6,228,206.58 and $4,207,911.10, respectively. This constituted a total decrease in deposits for this period of $10,436,117.68. Notwithstanding this showing with reference to the decrease in deposits, the State banks of Michigan show a net increase in deposits for the year 1907 of $1,643,153.01. This net increase in deposits is the excess of gain in savings deposits over the decrease in commercial deposits, the former showing an increase for the year of $9,459,115.97, while the latter showed a decrease of $7,815,962.96. The increase in loans for the year 1907 is $7,070,566.02. RESERVE CITIES. In accordance with the provisions of sections 24 and 27 of the banking. law, I have designated for the year 1908 the following as reserve cities, viz.: Detroit, Grand Rapids, Bay City, Saginaw, Kalamazoo, Jackson, Port Huron, Adrian, Benton Harbor, Muskegon, Ann Arbor, Calumet, Marquette, Lansing, Alpena, New York, Boston, Philadelphia, Baltimore, Buffalo, Cleveland, Cincinnati, Toledo, St. Louis, Chicago and Milwaukee. INSOLVENT BANKS. The Chelsea Savings Bank of Chelsea, was taken possession of by the Department December 2, 1907, the bank becoming insolvent on account of the financial operations of its president, Frank P. Glazier. On December 4, 1907, application was made to the circuit court for the county of Washtenaw by the Commissioner of the Banking Depart ment, for the appointment of a receiver, and, on December 5, 1907, Mr. W. W. Wedemeyer was so appointed. On furnishing satisfactory bonds, 'books of said bank, at the close of business, December 2, 1907, showed the following: Soon after my appointment as Commissioner, I was made acquainted with the affairs of this bank and at once took steps to bring about the reduction of its excessive loans and otherwise improve its condition. By personal conversation with Mr. Glazier, and by correspondence, I urged upon him and the other officers of the bank the necessity for immediate action in that direction. With the information already given your Excellency, it is, no doubt, apparent to you that the bank was loaning its president, members of his family and the various companies with which he was connected, more excessively when I assumed the office than when, with the concurrence of the Attorney General, the bank was closed. The amount of Mr. Glazier's borrowings from his private bank at Stockbridge and from the several national banks, could not have been known to the Department, and it had no authority to require them to disclose such information had the extent of Mr. Glazier's financial operations been suspected. Until this information was disclosed at a meeting of the various creditors of both Mr. Glazier and the Glazier Stove Company, which was held at Detroit but a few days prior to the closing of the bank, there was no evidence of the insolvency of The Chelsea Savings Bank. Everyone regarded Mr. Glazier as amply responsible and worth much more than he was borrowing. In consequence, the only matters subject to criticism in the bank prior to the disclosures incident to the failure, over which the Department had authority, was the carelessness of the board of directors, excessive loans and the carrying of a large investment in foreign tax certificates. These matters had the constant and vigorous attention of the Department during the ten months of my supervision of the bank. As your Excellency has been already informed, the excessive loans during that period of time were reduced by more than $100,000.00, and while the investment in foreign tax certificates remained, it is conceded that they are among the most valuable assets of the bank. The large deposit of State funds was not subject to my regulation, and was carried a long period of time prior to my becoming Commissioner, though I directed Mr. Glazier's attention to this matter and urged a reduction, receiving his assurance that the matter would be attended to. I am free to say that the course pursued will result in a larger return to the depositors than if the bank had been summarily closed by me as soon as my attention was called to the status of its affairs. The cir cumstance of having the real condition of this bank laid bare to me, I asure you was not in any sense a welcome legacy, and it simply remained for me to make the best of a bad situation, and to endeavor to save to the depositors the largest amount possible. Criticism has been made on the ground that the Chelsea Savings Bank should have been closed promptly by the Commissioner on discovering its condition rather than to have permitted it to continue, and that had that been done the financial operations of its president might have been averted. In answer to this criticism and others of like character, I wish to say that the causes resulting in Mr. Glazier's failure antedated my appointment as Commissioner. Had the course urged by those who criticise been adopted by me as the wisest to be followed, not only would the Chelsea Savings Bank have been closed, but with it at least five other institutions-as above noted, that are now in a safe and prosperous condition, the depositors of which are now fully protected in every sense. Therefore, I say, it is only those who are uniformed or do not care to be informed, who would criticise the course taken with reference to the Chelsea Savings Bank. Much information in connection with this failure has already been placed in your hands by the Department. I wish to assure you, however, should your Excellency desire any other or further information relating thereto which the Department can furnish, the same will be gladly and promptly transmitted to the executive office for your consideration. REPORTS OF RECEIVERS. The following reports from the receivers of the several insolvent banks in Michigan were received during December, 1907: City Savings Bank, Detroit. Union Trust Company, Detroit, receiver, under date of December 2, 1907, reports as follows: Liability to depositors at date of suspension, Feb. 10, 1902. .$3,378,121 20 Other liabilities Total 662,937 50 $4,041,058 70 Total assets at date of, and received since suspension.... 4,431,676 46 Amount collected by receiver to date.. 2,530,570 65 |