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Banking Department, Lansing, December 31, 1909.

To the Honorable Fred M. Warner, Governor of Michigan :

Complying with the provisions of Section 43 of the General Banking Law of Michigan, I have the honor to submit for your consideration the twenty-first annual report of this department for the year ending December 31, 1909.


There are under the supervision of this Department at the date of this report 377 state banks and five trust companies transacting busi ness in this state. In the statistics and tables the number is given as 376 state banks, one bank having commenced business since date of last report, November 16th, 1909.

FINANCIAL CONDITION, The financial condition of all State banks and trust companies is exhibited on pages three to three hundred eighty-six, inclusive. Reports of condition were called for by the department and made by the banks at the close of business November 27, 1908, February 5, April 28, June 23 and September 1, 1909. On November 16, 1909, a call for report of condition was made and received from each of the banks, and the report so received will be published in the department's annual report for the year 1910. As explained in the department's report for 1908, this plan is followed in order that the report may be in the hands of the bankers, so that it may be of value as a book of reference, and it also enables me to publish in each annual report all statements of condition called for

On pages 387 to 490 will be found statement of condition of each of the national banks in Michigan.

each year.


I beg to refer you to the tables contained in this text which show the increasing wealth of the people of our State since the department's organization in 1889. These tables contain abstracts of the annual reports of State and national banks for the past twenty-one years.

Attention is called to the tables in this text, giving abstract of reports of all state banking institutions and national banks in the United States as at the close of business April 28th, 1909. These figures were furnished me by the National Monetary Commission.

I again include in the annual report the statistics of the State and national banks in Michigan located in reserve cities.


The examining force of the department in the year 1909 has made 738 examinations. Each state bank has been examined twice, except such as were organized toward the close of the year. Each trust company has been examined once during the year in accordance with requirements of the trust, deposit and security law.

It gives me pleasure to report that special examinations for the purpose of determining whether or not a betterment of conditions had been etl'ected have been required in but few instances.

Taken as a whole, the affairs of the banks as revealed by the examiners' report are in very good condition. Each report has been carefully examined, and letters of criticism written the banks.

Each bank has made to the department, with the exception of those recently organized, five reports of condition, two reports of earnings and dividends, two reports showing condition as a result of directors' examination, and also special reports wherever the same have been deemed necessary.

Oaths of directors, signatures of officers and list of stockholders, together with a report as to the number of depositors, are furnished the department each year by each bank.

It also gives me pleasure to report that the reserve maintained by the several state banks has exceeded that maintained during any other year since the organization of the department. While the percentage of the reserve may not be as great, yet it has been distributed in such a manner that but very few banks were below the requirements of Sections 24 and 27 of the banking law.

As noted above, it has been necessary to ask for but few special reports. Irregularities called to the attention of the banks have generally been promptly corrected, and it has not been necessary during 1909 to enforce the provisions of the law on account of any disregard of the



There have been organized during 1909 twenty-six state banks, and I submit the following information in regard to the same:

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As provided for in section 10 of the General Banking Law the following banks have amended their articles of incorporation for the pur. pose of changing the amount of their capital stock:

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Kalamazoo Savings Bank Kalamazoo.
First State Savings Bank, Three Rivers
First State Savings Bank, Evart.
Adrian State Savings Bank.. Adrian.
Benton Harbor State Bank.. Benton Harbor..
Jipson Carter State Bank. Blissfield.
Ludington State Bank Ludington.
Presque Isle County Savings

Rogers City
Kalamazoo Savings Bank Kalamazoo
State Bank of Deckerville. Deckerville

221 2:39 354

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50,000 100,000

25,000 200.000 20,000

5,000 100,000

20,000 100.000 15.000

1 195


The above table shows an increase of banking capital of $315,000. To this should be added the $680,000 of new bank capital growing out of the organization of new state banks. A further addition should be made of $35,000 caused by the restoration to stockholders by receivers of the Athens State and Savings Bank and the Springport State Savings Bank, the aggregate capital of the two banks amounting to $35,000. The total increase, therefore, for the year amounts to $1,060,000. From this should be deducted the loss of banking capital growing out of the liquidation, consolidation and conversion of banks mentioned in another chapter of this report, which amounts to $550,000. The net increase in capital, therefore, for the year is $510,000.

OTHER AMENDMENTS TO ARTICLES OF INCORPORATION. The original Articles of Incorporation of the Metamora State Savings Bank were amended by a vote of the stockholders March 1, 1909, chang. ing the title of said bank from "The Metamora State Savings Bank” to “Metamora State Saving Bank.”

Being desirous of conducting a savings bank business in connection with a commercial bank business, the stockholders of the E. Hill and Son's State Bank of Colon, on September 14, 1909, voted to amend their original Articles of Incorporation in this regard.

Complying with the provisions of section 10 of the General Banking Law, the stockholders of the Kalamazoo Savings Bank on December 4, 1909, voted to amend its Articles of Incorporation, changing its name from the "Kalamazoo Savings Bank" to Kalamazoo City Savings Bank."


On the sixth day of February, 1909, the Citizens' Savings Bank of Detroit, Mich., by a vote of its stockholders voted to go into liquidation under the provisions of sections 53 and 5t of the General Banking Law. In course of its liquidation, the Dime Savings Bank of Detroit, assumed all liability to the depositors of the Citizens' Savings Bank, the latter transferring certain of its assets to the former to offset the liability assumed. As all of the assets of the Citizens' Savings Bank were not transferred to the Dime Savings Bank, further liquidation is now proceeding under section 53 of the Banking Law.

After having obtained the consent in writing of all of the stockholders, and also procuring the unanimous vote of its board of directors on March 11, 1909, the Commercial and Savings Bank of ('oleman voted to consolidate its affairs with those of the Midland County Savings Bank of Midland.

The stockholders of the United States Savings Bank of Detroit, on November 20, 1909, voted to place said bank in liquidation for the pur pose of consolidation with the People's State Bank of Detroit. Immediately upon the ratification of the consolidation by the directors of the People's State Bank I caused an examination to be made of the United States Savings Bank, and it appearing from such examination that the rights of creditors were not jeopardized consent to the consolidation was given by the department November 30, 1909.

voted to liquidate and close the affairs of said company according to sec tion 27 of Act No. 143 of the Public Acts of 1889. Upon determining that the provisions of said section had been complied with, and on receiving information that all obligations of said company had been fully met and discharged, consent was given to such liquidation, and the affairs of the company closed as of March 31, 1909.


By resolution of its directors and stockholders the Commercial State Bank of Ithaca, decided to reorganize as a national bank, and on December 7, 1909, the Comptroller of Currency approved the bank's application for conversion and authorized them to transact business as "The ('ommercial National Bank of Ithaca," Michigan, with a capital of $30,000.

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The Hillsdale Savings Bank of Hillsdale made application under the provisions of Act No. 143 of the Public Acts of 1889 to extend its chartered existence for a period of thirty years. Consent of the stockholders of said bank and original Articles of Incorporation were filed July 15, 1909. By virtue of Section 3 of said Act, I caused to be made on July 19, 1909, an examination of its affairs, and being satisfied as to its condition and that said bank had complied with all the provisions required by law, a certificate was issued extending its corporate existence for a period of thirty years from and after July 30, 1909.


Complying with the provisions of sections 24 and 27 of the Banking Law, I do hereby designate for the year 1910 the following cities as reserve cities for Michigan State banks and trust companies: Detroit, Grand Rapids, Bay City, Saginaw, Kalamazoo, Jackson, Port Huron, Adrian, Benton Harbor, Muskegon, Ann Arbor, Calumet, Houghton, Marquette, Lansing, Battle Creek, Alpena, New York, Boston, Philadelphia, Pittsburg, Baltimore, Buffalo, Cleveland, Cincinnati, Toledo, St. Louis, Chicago, Milwaukee and Minneapolis.


The total number of depositors in the 376 State banks and 99 national banks on December 1, 1909, amounted to 1,024,450 and are separated into the following classes : State banks, individual deposits subject to check.

128,231 State banks, commercial certificates of deposits..

43,412 State banks, savings depositors

468,267 State banks, savings certificates of deposits.

105,025 National banks, individuals deposits subject to check..

215,416 National banks, certificates of deposit....


The above classification shows that commercial depositor's in State

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