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STATE OF MICHIGAN, Banking Department, Lansing, December 31, 1908.

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

I have the honor to submit the twentieth annual report of this department for the year ending December 31st, 1908, in compliance with the provisions of section 43 of the General Banking Law of Michigan, as follows:


I have to report that at this date there are 353 State banks and six trust companies transacting business in this State under the supervision of this department. In the tables which follow this text you will notice that the number is given as 350 State banks. This difference in the number is caused by the fact that three banks commenced business subsequent to November 27th, the date on which the last call for report of condition was made.


On pages three to three hundred sixty-five, inclusive, will be found statements showing the financial condition of all State banks and trust companies in Michigan, as called for by this department on December 3rd, 1907, and February 14th, May 14th, July 15th and September 23d, 1908. A call for report of condition, as noted above, was made November 27th, 1908, and the same will be published in the annual report of the department for the year 1909. By following this plan I am able to have the report in the hands of the bankers in time to be of some value as a book of reference, and at the same time it enables me to publish in the annual report all statements of conditions called for each year. I would also call your attention to the fact that reports of condition of each of the national banks in the State appear on pages 369 to 446, inclusive.

For the purpose of showing the progress and increasing wealth of the State since the organization of the department I would refer you


to the tables contained in this text, which contain abstracts of the yearly reports of State and national banks for the past twenty years. For the purpose of showing the volume of business transacted in each of the reserve cities in the State of Michigan I have also compiled the statistics of the State and national banks therein.


The department has made 692 examinations during the year, all Staté banks having been examined twice, with the exception of those organized toward the latter part of the year, and the trust companies, the statute governing the latter requiring but one examination each year. Special examinations have been made at times for the purpose of ascertaining whether or not certain conditions required by the department had been met.

The examiners' reports as to the conditions revealed by the several examinations have been carefully scrutinized, compared with previous examinations, and letters of criticism written each bank.

From the foregoing, in connection with the reports of directors' examinations, made twice each year, the five reports of condition and the two reports of earnings and dividends, it will be seen that the department has been in almost constant communication with the banks under its supervision.

Where reports of condition have shown that banks have been constantly below the reserve requirements of sections 24 and 27 of the law special reports have been called for, and in several instances daily reports have been required, in order that the department might determine the progress such banks had made toward complying with the provisions of these sections of the banking law.

I have much pleasure in stating that in nearly all cases the criticisms of the department have been heeded promptly and willingly, and the instances have been few where it was necessary to call into action the provisions of the law with reference to a disregard of the same.


An assessment on the stockholders on account of impairment of the capital stock was found necessary in but one instance. This assessment was ordered, and has been collected and paid in, restoring the bank to a safe condition and fully protecting the depositors' interests.


Thirty-three State banks have been organized during the year as fol


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