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NEW BANKS.

During 1916 there have been chartered in Michigan state banks, as follows:

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For the purpose of increasing their capital stock the following banks have amended their original articles of incorporation, in accordance with sections 10 and 10-a of the law:

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The foregoing table shows an increase in banking capital of $2,075,000.00. Adding to this $1,775,000,000 new capital stock by organization of new banks, constitute a total increase for the year of $3,850,000.00.

There has been a loss in banking capital of $65,000.00 caused by the liquidation and conversion of certain banks, which would leave a net increase in capital for

CHANGE OF NAME.

The following banks have amended their original articles of incorporation for the purpose of changing their name:

"The Bank of Riverdale" to "The Riverdale State Savings Bank."

"The Peoples Savings Bank of Midland County" to "The Peoples State Savings Bank of Midland County."

"The Home State Bank of Gladwin" to "The Gladwin State Bank."

"The Michigan State Bank of Hamtramck" to "The First State Bank of Hamtramck."

LIQUIDATIONS AND CONSOLIDATIONS.

On December 15, 1915, the stockholders of the First State Bank of Three Oaks voted to go into voluntary liquidation, according to the provisions of Section 53 of the General Banking Law. The proceedings of the stockholders' meeting being regular in every particular, consent to liquidation was given January 7, 1916.

On February 3, 1916, the stockholders of The Baraga County State Bank of Baraga, voted to go into voluntary liquidation in accordance with the provisions of Section 53 of the General Banking Law. The proceedings of the stockholders' meeting being regular in every particular, consent to liquidation was given by this Department February 5, 1916.

On February 7, 1916, The Watervliet State Bank of Watervliet, by vote of its stockholders decided to go into voluntary liquidation in accordance with the provisions of Section 53 of the General Banking Law. The proceedings of the stockholders' meeting being regular in every particular, consent to liquidation was given by this Department February 25, 1916.

On June 3, 1916, and June 6, 1916, respectively, the stockholders of the National Bank of Flint, and the Genesee County Savings Bank of Flint voted to consolidate the affairs of the two institutions, the continuing bank to be known as the Genesee County Savings Bank. In view of the consolidation a special examination of the two institutions was made at the close of business June 6, 1916. Being satisfied that the depositors and creditors were not defrauded, nor their interests defeated, the preliminary proceedings being regular, in every particular, consent to consolidation was given by this Department, the consolidation becoming effective June 21, 1916.

EXTENSION OF CORPORATE EXISTENCE.

In accordance with the provisions of Act 143 of the Public Acts of 1899 the stockholders voted to extend the corporate existence of the following banks, for the period specified:

The Lapeer County Bank, Imlay City, extended thirty years from and after January 26, 1916.

The Farmers Bank of Mason, extended thirty years from and after June 18, 1916. The Paw Paw Savings Bank, Paw Paw, extended thirty years from and after May 10, 1916.

The Midland County Savings Bank, Midland, extended thirty years from and after September 10, 1916.

The Commercial and Savings Bank, St. Clair, extended thirty years from and after October 16, 1916.

The Farmers State Bank of Concord, extended thirty years from and after November 15, 1916.

The Sault Savings Bank, Sault Ste. Marie, extended thirty years from and after November 20, 1916.

The Peoples Savings Bank of Saginaw, extended thirty years from and after November 27, 1916.

TRUST COMPANIES.

During the year two trust companies have been organized: "The Guaranty Trust Company of Detroit" and "The Saginaw Valley Trust Company of Saginaw" with capitals of $300,000.00 and $150,000.00, respectively. The Guaranty Trust Company of Detroit was chartered and commenced business May 22, 1916, while a charter has been issued to The Saginaw Valley Trust Company authorizing it to com

The original articles of The Saginaw Valley Trust Company were amended, increasing its capital stock to $200,000.00.

RESERVE CITIES.

As required by Sections 24 and 27 of the banking law, I hereby designate for the year 1917 the following cities for 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, Marquette, Lansing, Battle Creek, Alpena, Traverse City, New York, Boston, Philadelphia, Pittsburg, Baltimore, Buffalo, Cleveland, Cincinnati, Toledo, St. Louis, Chicago, Milwaukee, Minneapolis and St. Paul.

GROWTH OF STATE BANKS.

December 31, 1916, marks the twenty-eighth anniversary of the founding of the present system of state bank supervision in Michigan. The following table shows the enormous increase in the aggregate footings of the state banks from the close of the first year of the department's existence to the present time:

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In the period 1889-1916, the following approximate increases are shown: deposits,$502,000,000.00, loans $441,000,000.00, capital, $33,000,000.00, surplus and undivided profits, $33,000,000.00.

The loans have increased, between November 10, 1915, and November 17, 1916, $96,501,539.70, the deposits $114,498,552.44. The increase in deposits is divided as follows:

Commercial deposits
Savings deposits

EARNINGS AND DIVIDENDS OF STATE BANKS.

$49,354,421 23
65,144,131 21

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, 1916, the gross earnings of state banks amounted to $25,479,686.86. From this sum

expenses, interest and taxes paid an aggregate of $17,615,665.07.

Net profits for the period amount to $6,188,147.49 out of which total dividends of $3,653,554.90 were declared. For the twelve months ending June 30, 1916, the total average capital of state banks was $34,862,156.28, with total average surplus of $20,624,216.04, and average total deposits of $438,507,445.29. On total deposits the net profits were equivalent to 1.41 per cent; on capital and surplus 11.15 per cent; with an average dividend on capital stock and surplus of 6.58 per cent.

NUMBER OF DEPOSITORS.

Reports as to number of depositors were received from each of the 485 state banks and 106 national banks as of November 15, 1916. An abstract of these reports shows total depositors 1,783,134, and divided into the following classification:

State Banks, commercial deposits
State Banks, savings deposits
National Banks, demand deposits
National Banks, time deposits

354,731 1,113,141 105,672

209,590

An increase in the number of commercial depositors in state banks for the year is shown of 45,194, while the gain in the number of savings depositors is 59,427, constituting an increase in state banks for the year 1916 of 104,621 depositors. During the year depositors in Michigan national banks have decreased 18,391. It will be seen, therefore, that the total gain in number of depositors in state and national banks aggregate 86,230 for the year 1916.

The following table shows the number of commercial and savings depositors in the 485 state banks and 106 national banks, the aggregate deposits, and per capita of deposits:

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In accordance with Section 40 of the Banking Law and Section 19 of the Trust Company Act the department has collected and turned over to the state treasury on account of annual, preliminary and special examinations of banks, $57,483.92, and collections from other sources $517.23. There has also been turned over to the Secretary of State for franchise fees, on account of new banks, increase of capital stock, and extensions of corporate existence, $2,544.50, showing total receipts during the year of $60,545.65. Attention is called to the list of state banks and trust companies in the latter part of this text, which list shows the dates of examinations and the amount of each annual examination fee collected from each state bank and trust company. The examiners' reports (from which the examination fees are determined) have been carefully compared, checked and verified by the State Treasurer with the amount of fees collected from each bank, and turned over to said official, and your attention is respectfully called to his letter appended to the text.

During the year 1916 the expenses of the Department were as follows:

SALARIES:

F. W. Merrick, commissioner

A. E. Manning, deputy commissioner

EXAMINERS:

C. H. Adams (resigned March 31, 1916)

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E. D. Albertson (appointed assistant January 1, 1916, appointed examiner March 1, 1916)

1,617 60

C. I. Norman (appointed July 1, 1916)

850 00

H. W. Hanson (appointed assistant July 17, 1916, appointed examiner August 1, 1916)

755 71

ASSISTANT EXAMINERS:

R. J. Fremont (given one year leave of absence May 31, 1916).. B. P. Greene (appointed clerk April 10, 1916, appointed chief clerk and assistant examiner July 1, 1916)

501 00

952 75

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STATIONERY, TELEPHONE, TELEGRAPH, EXPRESS, OFFICE EQUIPMENT, ETC.

1,926 91

Total expense

$72,956 61

Total receipts

60,545 65

The net cost to the state in 1916, for its present system of bank supervision is, therefore, $12,410.96.

COST OF OPERATION.

Recently, considerable interest has been shown in the increased cost of administering the various state departments as compared with the year 1904. It is a source of pride to the department to be able to present the following statistics for your approval:

Number of examinations

Total assets and liabilities examined.

Gross expenses of department.

Net cost to state..

Cost to examine each $100,000.00 unit of assets and

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