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TABLE OF CONTENTS.
REPORT OF THE COMMISSIONER
STATE OF MICHIGAN,
Lansing, December 31, 1907. To the Honorable Fred M. Warner, Governor of Michigan:
I have the honor to submit the nineteenth annual report of this department in compliance with the provisions of section 43 of the General Banking Law of Michigan, as follows:
NUMBER OF STATE BANKS UND TRUST COMPANIES. At the date of this report, there are three hundred twenty-nine State banks, six trust companies and one society for savings under the supervision of this department. In the statistics following the number of banks is given at 328 State banks. This is caused by one bank commencing business subsequent to December 3, the date of the last call for report of condition.
FINANCIAL CONDITIOX. Statements showing the financial condition of all State banks and trust companies, as called for by this department four times during the year, in addition thereto reports of the financial condition of the 93 national banks of the State; as are also abstracts of the yearly reports for the past nineteen years, which show the progress and increasing wealth of the State.
EXAJIXATIONS. During the year 646 examinations have been made by the Department, all the banks having been examined twice, except those organized the latter part of the year, and trust companies, the statute governing the latter requiring but one examination. In several cases, I have deemed it necessary to make more than two examinations of certain banks during the year, in order to ascertain whether the requirements of the law were being observed, and the safety of the depositors' funds fully protected. The reports of the examiners have been carefully gone over and compared with previous examinations, so with the published reports made, five of which were required during the year, besides two reports of dividends and earnings, and the criticism resulting has been made the subject of communication with the respective banks. In some instances special reports have been called for during the year, while in other cases, daily reports have been required, to the end that the
Department might be fully advised of the banks condition and whether progress was being made toward compliance with the banking law, the necessity for which having been previously pointed out by the Depart. ment.
In nearly every instance, the observance of the law and correction of irregularities requested by the Department, have been complied with promptly and willingly, and in but few cases has it been necessary to take drastic steps to bring about improved conditions.
IMPAIRMENT OF CAPITAL.
The capital of five banks was found by me to be impaired and an assessment on their stock, from fifty to one hundred per cent., was in each case ordered. These assessments have nearly all been collected and paid in, thus placing the banks effected on renewed and safe footing, fully protecting the depositors, which, in my opinion, should always be the first consideration of the Commissioner. These banks, on the discovery of their condition, could legally have been closed by the Commissioner, but such a course could not have been justified as being either wise or sane.
NEW BANKS AND TRUST COMPANIES.
Thirty-one State banks have been organized during the year, as follows:
The Barber State Bank of Verinontville,