Page images
PDF
EPUB

LIMIT OF LOANS

Section 2024-32 of the statutes permits a bank to loan a person, copartnership, or corporation an amount equal to thirty per cent of its capital and surplus, and which by authorization of the board of directors, upon approved security, may be increased to fifty per cent. This limitation is a source of grave apprehension to this department, as we find that a number of banks, by reason of an exceptional local demand, avail themselves of the full scope of the law which endangers, to a great extent, the solvency of these institutions. A further limitation of the size of such loans is deemed advisable, and I suggest that section 2024-32 of the statutes be amended by reducing the above limitations to twenty and thirty per cent respectively.

MINIMUM CAPITAL

During the last decade the development of the agricultural resources of the state has been very pronounced. In the more remote districts the settlers are getting their land cleared and making it productive. The average citizen is saving some money. The present prosperous condition existing throughout the entire state would seem to justify a requirement for more capital for banks organized under the laws of this state, and I suggest that the minimum capital for state banks shall be increased from $10,000 to $20,000.

CAPITAL TO BE INCREASED IN PROPORTION TO INCREASE IN

DEPOSITS

The exceptional increase in deposits in state banks in Wisconsin during the past year has very forcibly brought to my attention the extremely low capital of many banks as compared with their deposits. The deposits in some banks now exceed more. than thirty times the amount of their capital stock. The capital stock, in such cases, I consider to be insufficient to safeguard the depositors, and I, therefore, recommend that a law be enacted requiring banks to increase their capital stock whenever their deposits average ten times their capital and surplus for a period of six months.

SCHOOL SAVINGS BANKS

The savings habit among children is of late receiving consider

School savings banks are intended to encourage children to save their pennies and to assist them in forming habits of thrift and economy which are so essential to good citizenship.

A variety of savings methods have already been adopted in many of our schools, and while such schools are to be commended for their efforts to encourage the children to save, it is unfortunate that many of the methods employed are not in strict accord with our banking law.

It is desirable that children be educated in the savings habit, and I heartily recommend the passage of a law to create a uniform system of school savings banks, which will be under state supervision and subject to state control.

TRANSMITTING MONEY TO FOREIGN COUNTRIES

Money is usually sent to foreign countries through banks, express companies, or telegraph companies. It appears, however, that certain individuals and persons purporting to act as agents of certain corporations are doing quite an extensive business of this kind.

In order more fully to protect the public against irresponsible parties conducting such a business, I recommend that no person nor any corporation, other than a bank, a trust company, or an express company or telegraph company, receiving money for transmission through its regularly authorized agencies, shall engage in the business of transmitting money to foreign countries, or of receiving money on deposit to be transmitted to foreign countries, without a certificate of authority from the commissioner of banking, and the execution of a bond to the commissioner of banking for the faithful holding and transmission of any money, or equivalent thereof, which shall be delivered to the applicant for transmission to foreign countries.

STATISTICAL

Table A exhibits abstracts of each of the six reports made to this department by state banks, mutual savings banks, and trust companies during 1916.

Table B is a comparative abstract, exhibiting a year's growth in our banking institutions.

Table C presents the abstracts of statements made at annual periods since the creation of this department in 1895.

The development of our state banking system during a period

Abstract of the six reports called for from state and mutual savings banks and trust companies during the year 1916.

[blocks in formation]
[blocks in formation]

20, 321 45

74, 118, 189 88 19, 894, 301 86 79, 107, 708 39 52, 763, 137 60

[blocks in formation]

32,062 68 72, 533, 192 86 19, 591, 904 11 80, 290, 049 75 54, 381, 001 57

[blocks in formation]

$258, 195, 066 19 || $270, 125, 981 82 $271, 704, 252 84

LIABILITIES.

[blocks in formation]

$23, 295, 250 00 7, 318, 896 43 3, 675, 273 83 6, 073, 238 05

$23, 294, 850 00 7, 320, 074 24 4, 061, 006 46 5, 786, 399 67

$23, 518, 950 00 7, 397, 454 68

[blocks in formation]

302, 537 45 65, 281, 025 00 19, 122, 215 53 77, 085, 833 20 51, 957, 194 94

Certified checks

Cashier's checks

122, 138 11 920, 997, 36

141, 689 19 839, 701 49

[blocks in formation]

84, 981 29 911, 561 38 407, 111 59

$270, 125, 981 82

903, 814 35
563, 047 84
785, 865 95
30, 803 92

$271, 704, 252 84

239, 539 94 1,035, 239 19 382, 648 14 507, 394 58 179, 411 91

[blocks in formation]
[ocr errors]

Dollars.

[merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]
[graphic]

Table B.

Abstract of reports of state and mutual savings banks and trust companies of Wisconsin at the close of business November 17, 1916, and comparison with a similar abstract of November 10, 1915.

[merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][ocr errors][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small][merged small]
[blocks in formation]

* Private banks were legislated out of existence by Chapter 234, Laws of 190 Trust companies were authorized by Chapter 186, Laws of 1909, to receive tim

« PreviousContinue »