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Banking Department, Lansing, December 31, 1910.

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-second annual report of this Department for the year ending December 31, 1910.


There are at the date of this report under the supervision of this Department, 399 state banks and five trust companies transacting business in this state. In the statistics and tables the number is given as 397 state banks. This is due to the fact that two banks commenced business since the date of the last report, November 10, 1910.


On pages three to four hundred eight, inclusive, will be found reports showing the financial condition of all state banks and trust companies. Reports of condition were called for by the Department and made by the banks at the close of business November 16, 1909, January 31, March 29, June 30, September 1 and November 10, 1910. The last named report will be published in the Department's annual report for the year 1911. As explained in previous reports, this plan was adopted in order that the report might be in the hands of the bankers in time to be of appreciable value as a book of reference.

On pages 410 to 515 will be found statements of conditions of each of the national banks in Michigan.

I desire particularly to call attention to the tables contained in the text of this report, which show the increasing wealth of the people of our state since the organization of the Department in 1889, and contain

twenty-two years. I again include the statistics of the state and national banks located in reserve cities.


The Departments, through its examining force, has made 792 examina tions during the year 1910. Each state bank has been examined twice. except such as were organized during the last months of the year. Each of the five trust companies has been examined once during the year to meet the requirements of the trust, deposit and security law.

The condition of the banks and trust companies, as revealed by the examiners' reports, is extremely gratifying. Each examiner's report has been carefully examined, and letters of criticism written the banks. These letters of criticism, as well as replies thereto, were required to be made a part of the directors' records.

With the exception of the banks organized during the year, each bank has made to the Department five reports of condition, two reports of earnings and dividends, two reports showing the result of directors' examinations, and also special reports wherever circum stances have warranted asking for the same.

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.

I am pleased to state that it has been necessary but in a few cases to require special reports. Where such reports have been required they have been promptly given, and steps have been taken by the banks to correct the irregularities to which their attention was called.


In a few instances during the year, a few of the banks have allowed their cash and legal reserves to fall below the requirements of Sections 24 and 27, yet as a whole the total reserve for the state has been well maintained. As a matter of convenience and reference, I give the following tabulation:

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The above tables exhibit the fact that the highest reserves maintained during the year were on January 31, since which time the reserves have shown a gradual decrease, falling from 20.8 to 19.3 per cent. The commercial legal reserve throughout the year has been well maintained, notwithstanding the fact that it decreased from 26.1 to 23.7 per cent. The commercial cash reserve has also been well maintained, the high point being reached June 30, with a reserve of 9.7 per cent. The legal reserve on savings deposits has fluctuated from 18.3 per cent March 29 to 17 per cent November 10, while the savings cash reserve for the year shows a slight gain, the high point being on November 10, when a cash reserve of 5.8 per cent was maintained. The low point occurred on March 29, with a savings cash reserve of 5.16 per cent.


By reference to the following table it will be seen that in the year 1910 twenty-six state banks have been organized.

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Complying with the provisions of Section 10 of the General Banking Law the following banks have amended their original articles of incorporation for the purpose of increasing the amount of their capital stock:

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The foregoing table shows an increase in banking capital of $1,118,000. To this should be added the $690,000 of new capital on account of organization of new state banks, making the total increase for the year $1,808,000. From this amount, however, should be deducted the loss of banking capital growing out of the liquidation and consolidation of the State Savings Bank of Rochester, which had a capital of $25,000. The net increase in capital, therefore, is $1,783,000, nearly all of which has been paid in.


On January 11 the State Bank of Reading amended its articles of incorporation to permit the transaction of a savings bank business.

The stockholders of the Benzie County State Savings Bank of Frankfort, Michigan, on June 14, 1910, voted to change the name of said bank to "State Savings Bank, Frankfort, Mich."

Under date of December 12, 1910, the stockholders of the State Bank of Hesperia, voted to amend its articles of incorporation, permitting the bank to conduct its business in the Village of Hesperia, County of Newaygo, rather than in the County of Oceana. The village of Hesperia is located on either side of the boundary line of the counties of Newaygo and Oceana, and the bank having erected a new bank building on a site opposite to the location named in the original articles of incorporation, changed its location so far as the county was concerned, thus necessitating such amendment.


On November 24, 1909, the stockholders of the Kalamazoo Savings Bank of Kalamazoo and of the City National Bank of the same place voted to consolidate the affairs of the two institutions, the consolidation taking effect January 1, 1910. At another meeting of the stockholders of the Kalamazoo Savings Bank held on the fourth day of December, 1909, the original articles of incorporation were amended, changing the name of the corporation to the "Kalamazoo City Savings Bank."

In view of this consolidation, I caused an examination to be made of the City National Bank of Kalamazoo on the twentieth day of December, 1909, and being satisfied with the character of its assets, and also with the regularity of the proceedings had in connection with such consolida

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