houn State Bank, Homer, voted to amend their articles so as to permit the transaction of a savings bank business by the respective banks. 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 $111,221,376.62. and deposits $122,596,327.52, as will be seen from the following statement: The total number of depositors in the 242 State banks and 87 National banks on December 1, 1903, was 568,630, as follows: State banks, individual deposits subject to check.... State banks, commercial certificates of deposit. State banks, savings depositors. State banks, savings certificates of deposit... National banks, individual deposits subject to check.. 66,649 43,584 283.847 42,439 57,835 74,276 The following table will show number of commercial depositors and savings depositors in the 242 State banks and 87 National banks, together with amount of deposits and average amount to each depositor: • This includes certificates of deposits; several certificates issued to one person counted as one. DIVIDENDS OF THE TWO HUNDRED FORTY-TWO BANKS AND FOUR TRUST COMPANIES. Dividends paid for 1903 on capital stock of *$14.842,470.00, amounted to $1,344,814.00. Increase of surplus fund during the year was $600,218.47. Average dividend rate on capital for the year 1903 was nine per cent. Average dividend rate on capital and surplus for year 1903, *$19,802,363.71, was six and seven-tenths per cent. RECEIPTS AND EXPENSES OF THE DEPARTMENT. The fees collected by this department for the examination of banks, according to the provisions of section 40 of the General Banking Law, amounted to $17.809.21. And there has been turned over to the Secretary of State for franchise fees on capital stock of new banks and from banks increasing their capital, $310.50, and from other sources $13.00, in all $323.50. This amount together with $17,809.21, examination fees, makes a total of $18,132.71 received from banks during the year. The expenses of the department for the year were as follows: Salary of Geo. W. Moore, Commissioner, (from January 13, 1903) Salary of Geo. L. Maltz, Commissioner, (to January 13, 1903) Salary of Wm. Donovan, as examiner, (resigned January 13, $2,409 72 90 28 1,927 78 61 39 Salary of W. T. Bradford, Deputy Commissioner. (term expired January 13, 1903)... 72 22 Salary of W. T. Bradford, as examiner, (appointed January Salary of F. D. Carleton, examiner, (appointed February 23, 1903) 1,398 92 Salary of Charles M. Turner, examiner, (appointed June Miscellaneous expenses. viz., printing. stationery, postage, etc. 2,198 94 Total..... $22,829 31 The foregoing shows that the actual cost of the department to the State is $4,696.60. RESERVE CITIES. In accordance with the provisions of sections 24 and 27 of the Banking Law, I have designated for the year 1904 the following as reserve cities, viz.: Detroit, Grand Rapids, Bay City, Saginaw, Kalamazoo, Jackson, Port Huron, Adrian, Benton Harbor, Muskegon, Ann Arbor, Marquette, New York, Boston, Philadelphia, Baltimore, Buffalo, Cleveland, Cincinnati, St. Louis, Chicago and Milwaukee. REPORTS OF RECEIVERS. The following reports from the several receivers were called for under date of December 1, 1903, with the exception of the receiver of People's Savings Bank, Lansing, who reports under date of December 31, 1903: People's Savings Bank, Lansing. G. W. Jewett, receiver, under date of December 31, 1903, reports as follows: Liability to depositors at date of suspension, July 15, 1896. $138,540 20 Other liabilities 111,603 63 Total .. $250,143 83 Total assets at date of, and received since suspension.... 411,965 11 168,401 60 Union Trust Company, Detroit, receiver, reports as follows: Liability to depositors at date of suspension, February 10, Total assets at date of, and received since suspension... 4,293,392 90 Clarence Tinker, receiver, reports as follows: Liability to depositors at date of suspension, June 14, 1897. Total assets at date of, and received since suspension. $88,703 19 14,141 30 $102,844 49 141,757 18 72,775 19 $16,960 65 42,293 62 1,619 42 6.000 00 5,401 50 500 00 72,775 19 The Tawas State Savings Bank, East Tawas. N. C. Hartingh, receiver, reports as follows: Liability to depositors at date of, and received since sus Total assets at date of, and received since suspension. 80,581 26 9,086 16 People's Savings Bank, Mt. Pleasant. Charles T. Russell, receiver, reports as follows: Liability to depositors at date of suspension, August 20, 1897 Other liabilities Total Total assets at date of, and received since suspension... $65,491 80 16,896 90 $82,388 70 236,876 78 123,520 43 $80.522 70 30,043 02 1,772 69 8,216 15 2,878 50 87 37 123,520 43 OPINION OF ATTORNEY GENERAL. Below you will find an opinion from the Attorney General as to sections 27 and 52 of the General Banking Law with reference to the amount of money a State bank can loan to any one person, firm or corporation : Lansing, Mich., May 23, 1903. Hon. George W. Moore, Commissioner of Banking, Lansing. Michigan: Dear Sir-I am in receipt of your communication of the 19th inst. referring to the General Banking Law of this State, and requesting my opinion upon the following questions: "First, How much money may the directors of a bank loan to any person or company, or corporation, or firm, by a two-thirds vote of its board of directors? "Second, How much money may any bank loan on any one line of commercial paper? "Third, May a bank increase the first named line by the bond or personal endorsement of the officers or directors of a firm, company or corporation, or by the assignment of value as collateral?" In considering these questions I desire to call your attention to section 6141 of the Compiled Laws, being section 52 of the General Banking Law of this State, which provides in part as follows: "The total liabilities to any bank of any person or of any company, corporation or firm for moneys advanced, including in the liabilities of the company or firm the liability of the several members thereof, except special partners, shall at no time exceed one-tenth part of the amount of the capital and surplus of such bank; but the discount of bills of exchange drawn in good faith against actually existing values and the discount of commercial or business paper actually owned by the person negotiating the same shall not |