When the banking law went into effect, the Commissioner found several banks that were embarrassed by doubtful investments, and whose capital was impaired by losses and bad debts, which have since been made good, and they are now in a flourishing condition.

Two or three banks are still contending with unprofitable investments, and cumbered with property involuntarily acquired previous to the adoption of the present banking law, which under the provisions of section 34, they are gradually working off, or changing to other investments.

Very much has been accomplished in this respect during the past year, and we have been assured and have reasons to believe, that more will be effectuated during the year to come.

Aside from the two or three banks above referred to, the State banks of Michigan are in a prosperous condition, and entitled to the respect and confidence of the public.

That the people are satisfied, and have respect for the banking law, is evident by the increasing demand for banking institutions, and the increase in the volume of business as shown by the following coni parative abstract of the December reports of the State banks in Michigan for the years 1889, 1890 and 1891, as made to the Commissioner of Banking:

3

$7,254,559 10
1,132,329 90

$8,460,835 00
1,502,849 44
1,912,300 21

$9,522,420 00

For the purpose of showing the growth of the banking business of the State for the past two years, I present here with a comparative abstract of reports of incorporated banks, as made in December of the years 1889

Four times during the year, on passed days unknown to the officers of the several banks, I have called upon them to report to me their condition as shown by their books, May 4, July 9, September 25, and December 2. An abstract of these statements are presented herewith, and are given in detail in the succeeding pages of this report.