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At a meeting held February 4th of the stockholders of the Grand Haven State Bank of Grand Haven, Michigan, it was voted to consolidate the business of the National Bank of Grand Haven with that of the Grand Haven State Bank, and on said date the latter bank amended its original articles of incorporation, increasing its capital stock from $30,000 to $75,000.

On February 10th, 1910, the stockholders of the National Bank of Grand Haven voted to place said bank in voluntary liquidation, according to the provisions of Sections 5220 and 5221 of the United States revised statutes for the purpose of consolidating said bank with the said Grand Haven State Bank.

Being satisfied with the assets of the National Bank of Grand Haven, after an examination of the same by this Department, and in view of the fact that all the proceedings had under the Michigan and National Banking Acts were regular, I consented to such consolidation which took place on the 19th day of February, 1910.

The stockholders of the Sanilac County State Bank of Croswell on May 18, 1910, voted to consolidate its business with that of the State Bank of Croswell. On said date the State Bank of Croswell by its stockholders agreed to such consolidation, and on the thirtieth day of June, the provisions of the banking law having been fully met, consent was given to such action.

On July 10, 1910, the stockholders of the State Savings Bank of Rochester voted to consolidate its affairs with the First National Bank of Rochester, and on the third day of August, 1910, all the provisions of the banking law having been complied with, consent was given to such action.

The Armada Savings Bank of Armada, at a meeting of its stockholders held on the seventeenth day of December, 1910, voted to place the affairs of the bank in liquidation, according to the provisions of Section 53 of the General Banking Law. The proceedings had by the stockholders being regular in every particular and complying with the provisions of the above named section of the banking law, I consented to such liquidation, the same becoming effective December 31, 1910. However, a majority of the stockholders of said bank in the meantime organized "The Armada State Bank," and authority to commence business was granted the latter December 31, 1910. In consenting to the above liquidation and granting the aforesaid charter, I have insisted that the affairs of the two corporations be kept entirely separate, and that the new bank open a new and distinct set of books, thus avoiding a confusion of the assets of either institution.

EXTENSION OF CORPORATE EXISTENCE.

The West Michigan Savings Bank of Bangor made application under the provisions of Act 143 of the Public Acts of 1899, to extend its corporate existence for a period of thirty years. Consent of the stockholders of said bank and original Articles of Incorporation, authorizing such extension, were filed December 16, 1910. I caused an examination of said bank to be made December 21, 1910, as required by Section 3 of said act, and being satisfied as to the bank's condition, and that said bank had com

ing its corporate existence for a period of thirty years from and after January 12th, 1911.

RESERVE CITIES.

As required by Sections 24 and 27 of the banking law I hereby designate for the year 1911 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.

BANKS CLOSED BY DEPARTMENT.

On June 4th, 1910, the Department took possession of the Citizens State Savings Bank of Plainwell. The condition of the bank was revealed during the course of an examination by one of the Department's examiners and showed that the cashier had been using the bank's funds for the purpose of investing in Texas lands to an amount approximating $38,000. This transaction took place shortly after the examination of the bank by the Department on December 27th, 1909, and almost immediately after the last semi-annual examination of the bank by its directors, the latter having no knowledge of the matter until their attention was called to the same by me as a result of an examination made Thursday, June 2nd, 1910. At a directors' meeting June 3rd, it was unanimously decided to place the bank in my hands, pending further investigation as to its condition.

The impairment of the bank's capital by the above mentioned transaction of the cashier was made good by the stockholders, and the bank again opened its doors for business Friday, July 1st, 1910.

GROWTH OF STATE BANKS.

The twenty-second year of state bank supervision under the present banking law ended December 31st, 1910. In January, 1889, the first year of the Department's existence, there were 80 state banks with aggregate footings of $38,900,770.88. As hereinbefore stated the number of banks has increased to 397 state banks and 5 trust companies with total footings of $303,996,116.29.

The increase in deposits since 1889 has been enormous, amounting to $230,303,874.94. During this period loans show a gain of $214,917,874.25, and there has been added to banking capital $18,343,385, and to surplus $16,063,819.21.

In this connection I desire to call your attention to the following table:

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The report of November 10th, 1910, compared with the report of November 16th, 1909, shows an increase in loans of $27,918,411.75, while the total deposits show a gain of $27,165,211.41. This increase in deposits is apportioned as follows: Commercial Deposits (individual) $8,338,995.57, Savings Deposits $17,781,758.17, and deposits of other banks $944,467.67.

NUMBER OF DEPOSITORS.

On December 1st, 1910, a report as to number of depositors was received from each of the 397 state banks and 102 national banks. These reports show a total of 1,050,267 depositors, which are separated into the following classes:

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.
National Banks, certificates of deposit...

139,136

47,871

514,493

104,652

173,932

70,183

The above shows that the number of commercial depositors in state banks have increased 15,364, while the gain in the number of savings depositors is 45,853, constituting a total increase in number of depositors in state banks for 1910 of 61,217. The reports of Michigan national banks on said date show that number of depositors have decreased 35,400. The net gain therefore in state and national banks amounts to 25,817 for 1910.

Below I give table showing the amount of commercial and savings depositors in the 397 state banks and 102 national banks, the aggregate

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*This includes certificates of deposit; several certificates issued to one person counted as one.

EARNINGS AND DIVIDENDS OF STATE BANKS.

While there is no uniform dividend period for state banks, the law provides that each bank shall report to the Commissioner within ten days after declaring any dividend, the amount of the same, the amount carried to surplus, and any earnings in excess thereof. It is the custom of the Department, however, to call for a report as to earnings and dividends on June 30 and December 31 of each year. An abstract of reports made December 31, 1909 and June 30, 1910, shows that gross earnings amounted to $13,304,029.98, and that there was charged out of this sum on account of losses, bad debts, premiums, etc., $625,024.84, and on account of expenses and interest paid $9,192,289.17. The net earnings, therefore, were $3,486,715.97, out of which dividends were paid amounting to $2,009,518.31. The average capital for the period above mentioned amounted to $22,861,777.50, with an average surplus fund of $11,634,112.30, and average deposits of $245,952,155.77. The net earnings were, therefore, equivalent to 1.46 per cent of deposits, 15.25 per cent of capital, and 10.01 per cent of capital stock and surplus, while the average dividend on capital stock amounted to 8.7 per cent, and on capital stock and surplus 5.8 per cent.

RECEIVERSHIPS.

The following reports of active receiverships are respectfully submitted:

The City Savings Bank, Detroit.

The Union Trust Company, Detroit, receiver, under date of December 1st, 1910, reports as follows:

Liability to depositors at date of suspension.....
Other liabilities

Total

Total assets at date of, and received since suspension..

Amount collected by receiver to date. . . .

$3,378,121 20

662,937 50

$4,041,058 70

521,834 96 2,708,506 85

Disposition of collections:

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Since the failure of this bank February 10, 1902, dividends to the amount of 68 per cent have been paid savings depositors, and 64 per cent to commercial depositors. Pending litigation concerning certain certified checks to the amount of $662,000 is delaying the winding up of this receivership.

The Chelsea Savings Bank, Chelsea.

William W. Wedemeyer, receiver, under date of December 1st, 1910, reports as follows:

Liability to depositors at date of suspension....
Other liabilities

Total ....

Total assets at date of, and received since suspension.

Amount collected by receiver to date

Disposition of collections:

Loans paid and other disbursements
Dividends paid

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$1,028,852 84

20,764 21

$1,049,617 05

1,419,391 41

724,696 01

$15,254 81

613,329 96

13,922 26

19,025 71

10,000 00

29,862 82

23,300 45

$724,696 01

The above bank was closed December 2, 1907. Up to the date of this report dividends to the amount of 44 per cent have been paid commercial depositors, and 70 per cent to savings depositors. Further dividends will no doubt be made, but owing to litigation concerning the affairs of the bank the final report of the receiver is delayed, although it is expected the receivership will be closed before the time of making the next report. It is apparent, however, that the loss to depositors will not be as large as was at first expected.

State Bank of Fenton, Fenton.

Clarence Tinker, receiver, under date of December 31st, 1910, reports as follows:

Liability to depositors at date of suspension

...

Other liabilities

Total

$101,710 04 1,134 45

$102,844 49

Total assets at date of, and received since suspension..
Amount collected by receiver to date

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