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As exhibited by the above table, the highest combined reserves maintained during the year was on February 20, 1912, being 22.04 per cent; while reserves were lowest November 26, 1912, dropping to 18.31 per cent. The commercial legal reserve throughout the year has been well maintained, the highest point occurring February 20, with 28.63 per cent, with low point on November 26, of 20.64 per cent. Commercial cash reached the highest point June 14, 9.80 per cent, with low point occurring February 20, 8.06 per cent. The maximum legal savings reserve occurred April 18, 1912, at 19.46 per cent, with the minimum on November 26, 17.05 per cent; while savings cash reserve was highest on April 18, 1912, with a percentage of 5.73, and lowest on June 14, at 5.49 per cent.

Where reports of condition of state banks have shown low reserves, or other conditions not in harmony with the law, banks have been immediately instructed to place themselves within the law's provisions.


During the year 1912, there have been organized in Michigan 29 state banks, as follows:

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In accordance with the requirements of Section 10 of the General Banking Law, the following banks have amended their original articles of incorporation in the direction of increasing their capital stock.

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The foregoing table shows an increase in banking capital of $1,505,000.00. Adding to this the $772,500.00 new capital stock by organization of new banks, constitutes a total increase for the year of $2,277,500.00. There has been a loss in banking capital of $250,000.00 caused by the liquidation, consolidation and conversion of certain banks, which would leave a net increase in capital for the year of $2,027,500.00.



The Citizens Bank of Ontonagon, by vote of the stockholders on September 14, 1912, amended articles of incorporation, changing the title to "The Citizens State Bank of Ontonagon."


The stockholders of the Onaway State Banking Company, at a stockholders' meeting held January 9, 1912, voted to liquidate the affairs of the above bank for the purpose of consolidating with the Onaway State Savings Bank, Onaway, said consolidation taking place at the close of business January 17, 1912.

On January 2, 1912, the Port Huron Savings Bank consolidated with the Commercial Bank of Port Huron.

On March 25, 1912, the stockholders of the Peoples State Bank, Pinconning, voted to consolidate with the Pinconning State Bank, said con

On May 6, 1912, the Home Savings Bank of Marine City consolidated with the Marine Savings Bank, Marine City.

On July 30, 1912, the Homer State Bank of Homer consolidated with the Calhoun State Bank, Homer.


The State Savings Bank of Benton Harbor was converted into the American National Bank at the close of business, February 20, 1912.


In accordance with the provisions of Act 143 of the Public Acts of 1899, the corporate existence of the following banks has been extended:

Farmers and Mechanics Bank, Ann Arbor, extended thirty years from and after October 29, 1912.

Union Banking Company, St. Joseph, extended thirty years from and after August 24, 1912.

German American Bank, Detroit, extended thirty years from and after February 3, 1913.


As required by Sections 24 and 27 of the banking law, I hereby designate for the year 1913 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, Traverse City, New York, Boston, Philadelphia, Pittsburg, Baltimore, Buffalo, Cleveland, Cincinnati, Toledo, St. Louis, Chicago, Milwaukee and Minneapolis.


The twenty-fourth year of state bank supervison under the present law terminated December 31, 1912. At the close of the first year of the present bank supervision, there were eighty state banks transacting an aggregate business of $38,900,770.88. On November 26, 1912, there were 439 state banks and 5 trust companies in Michigan with total footings of $372,640,240.52. Since 1889 deposits have increased $288,027,590.88. Loans for this period show a gain of $274,490,728.62, with a gain in banking capital of $23,124,285.00 and in surplus and undivided profits of $20,684,442.75.

Your attention is called to the following comparative table:

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Compared with the showing made December 5, 1911, the above table shows that up to and including November 26, 1912, loans increased $33,630,463.75, while a gain in deposits is shown of $23,541,271.36. The increase in deposits for this period is divided as follows: Commercial deposits

Savings deposits


$7,061,926.39 16,479,344.97

The Michigan banking law does not fix a uniform dividend period for state banks. It provides, however, that each bank shall report to the Department within ten days after declaring any dividend, such reports showing amount of same, amount carried to surplus, and any earnings in excess thereof. The custom of the Department in this regard is to call for a report of earnings and dividends on June 30 and December 31 of each year. For the year ending June 30, 1912, the gross earnings of state banks amounted to $17,947,466.79. From this sum was charged out on account of losses, bad debts, premiums, etc., $1,544,109.94, while expenses and interest paid aggregate $12,584,115.42. Net profits for the period amount to $3,819,241.43, out of which total dividends of $2,755,917.90 were declared. For the twelve months ending June 30, 1912, the average capital of state banks was $26,733,085.73, with average surplus at $13,999,658.39, and average deposits of $299,410,935.65. On total deposits the net profits were equivalent to 1.28 per cent; on capital 14.28 per cent; on capital and surplus 9.38 per cent; with an average dividend on capital stock of 10.31 per cent; and on capital stock and surplus 6.76 per cent.


Reports as to number of depositors were received from each of the 439 state banks and 99 national banks as of November 15, 1912. An abstract of these reports shows total depositors, 1,232,208, and divided

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