Page images


During the year 1925, the following Michigan State banks and trust companies have been authorized to commence business:

[blocks in formation]

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

[blocks in formation]

The foregoing table shows an increase in Capital Stock of $3,115,000.00 adding to this amount $2,715,000.00 Capital Stock of new banks makes a total increase for the year of $5,830,000.00, after subtracting the Capital of the banks consolidated, liquidated and the one decrease in Capital Stock there remains a net gain of $5,025,000.00.


On May 25, 1925 the affairs of the Continental Bank of Detroit were taken over by the Central Savings Bank of Detroit for the purpose of liquidation.

On June 1, 1925 The Farmers State Bank of Deckerville consolidated with the State Bank of Deckerville.

On July 1, 1925 the affairs of the Farmers Savings Bank of Coleman were taken over by the State Bank of Coleman for the purpose of liquidation.

On August 31, 1925 The First State Bank of Constantine consolidated with the Commercial State Bank of Constantine, under the title of First Commercial and Savings Bank, Constantine.

The following banks have amended their Articles of Incorporation for the purpose of changing their corporate title: Commercial State Bank of Constantine to the First Commercial Savings Bank, Constantine.

Brightmoor State Savings Bank to the Union Savings Bank, Brightmoor.

Metropolitan Trust Co. of Highland Park to the Metropolitan Trust Co., Highland Park. On November 27, 1925 the Jeddo State Bank was closed by order of the Commissioner of Banking. On December 22, 1925 George C. Watson was appointed receiver.


As required by Sections 24 and 27 of the General Banking Law, I hereby designate for the year 1925 the following cities as reserve cities for Michigan state banks and trust companies: Adrian, Alpena, Ann Arbor, Battle Creek, Bay City, Benton Harbor, Cadillac, Detroit, Flint, Grand Rapids, Jackson, Kalamazoo, Lansing, Marquette, Muskegon, Pontiac, Port Huron, Saginaw, St. Joseph, Sault Ste. Marie, Traverse City, Baltimore, Boston, Buffalo, Chicago, Cincinnati, Cleveland, Milwaukee, Minneapolis, New York, Philadelphia, Pittsburg, St. Louis,

St. Paul and Toledo.


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. 178 Merchants Savings Bank, Battle Creek for 30 years from March 20, 1925.

179 Albion State Bank, Albion for 30 years from March 13, 1925.

181 Cadillac State Bank, Cadillac for 30 years from October 1, 1925.

182 State Bank of Croswell, Croswell for 30 years from November 15, 1925. 184 Lexington State Bank, Lexington for 30 years from January 26, 1926. 185 Citizens Savings Bank, Owosso for 30 years from February 6, 1926.


December 31, 1925 marks the thirty-seventh 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's existance of this Department to the present time:

[blocks in formation]


$38,900,770 88 $120,576,867 13 $273,718,216 23 $942,899, 109 20 $1,453,108,186 10

Liabilities. Capital stock paid in. Surplus fund and undivided profits..


Bills payable and rediscounts.

Other liabilities.


[blocks in formation]

$38,900,770 88 $120,576,867 13 8273,718,216 23 $942,899, 109 20 $1,453,108,186 10

In the period 1889-1899, the following approximate increases are shown: Deposits, $71,845,147.78; loans, $63,212,569.56; capital, $6,742,675; surplus and undivided profits, $3,271,486.13.

1899-1909 shows the following increases: Deposits, $131,293,505.75; loans, $123,786,892.94; capital $9,899,033.00; surplus and undivided profits, $11,652,794.64.

1909-1919 shows the following increases: Deposits, $576,172,650.44; loans, $533,282,698.67; capital, $23,847,237.00; surplus and undivided profits, $28,330,894.63.

1919-1925 shows the following increases: Deposits, $431,845,328.60; loans, $398,197,097.64; capital, $26,496,236.70; surplus and undivided profits, $29,187,176.84.


The General Banking Law of the State of Michigan does not specify a definite date on which state banks are to make a report of their earnings and dividends. It provides, however, that each bank shall report to the Commissioner of the Banking Department within ten days after declaring any dividend, such report showing amount of dividend, amount carried to surplus and any earnings in excess thereof. The custom of the department in this respect is to call for a report of earnings and dividends as of June 30 and December 31 of each year.

[blocks in formation]

Reports as to the number of depositors were received from the 584 state banks, 18 trust companies and 126 national banks as of November 10, 1925. An abstract of these reports shows total depositors of 3,315,510, divided into the following classifications:

State Banks, commercial depositors..

State banks, savings depositors.
National banks, commercial depositors..
National banks, savings depositors...

734,421 1,984,418



An increase of 51,458 is shown in the number of commercial depositors of state banks for the year, while the increase in the number of savings depositors is 75,679, constituting a total increase in number of depositors of state banks of 127,137. During the year the number of commercial depositors in Michigan national banks has increased 22,536 and the number of savings depositors has increased 26,124 making a total increase for national banks of 48,660.

The total increase in number of depositors in both state and national banks for the year 1925

The following table shows the number of commercial and savings depositors in the 584 state banks, 18 trust companies and 126 national banks, the aggregate deposits and per capita of deposits:

[blocks in formation]

In accordance with section 40 of the General Banking Law, the Department has collected and turned over to the State Treasury the following fees and collections:

[blocks in formation]

Total fees turned over to the State Treasurer for the year 1925. Franchise and filing fees turned over to the Secretary of State.....

Total Departmental receipts, 1925.......

During the year 1925 the expenses of the Department were as follows: Salaries:

[blocks in formation]
[blocks in formation]
[blocks in formation]

9,100 00

510 22 55,904 50 11,554 84

983 32

$181,079 76 142,772 32

The net cost to the State in 1925, for its present system of bank supervision, is therefore, $38,307.44.


The following table shows the steamship bonds which are legal investments for savings deposits of state banks at the date of this report.


Date of approval.

Name of Company.

Name of Steamer.

Amount of bond issue.


I submit the following table for the purpose of showing that the absolute separation and segregation of savings deposits and investments has not retarded or restricted in any way the commercial business interest of the state.

[blocks in formation]

An analysis of the above shows conclusively that the commercial needs of the state have not been restricted on account of the operation of the law. The report of September 28, 1925, shows commercial or business needs were amply supplied. State banks on that date had discounts of this character in the savings department aggregating $105,034,395.68 notwithstanding the fact that they could, if necessary, have availed themselves to the amount of $123,353,741.68.


There are 162 state banks which are members of the Federal Reserve System with aggregate resources of $1,009,067,203.41 upon December 31, 1925, which evidences 67.9 per cent of the total resources of state banks in Michigan upon that date.

The Federal Reserve Act provides that state bank members shall retain their statutory state right after becoming a member of the Federal Reserve System, and the reserve requirements of member banks are governed-after they have become such members-by the Federal Reserve Act, rather than the provisions of the state banking law.

The Federal Reserve Act provides that the Federal Reserve Board may accept in lieu of their own examinations of member state banks, the examinations made by the respective state departments having supervision over them. The examinations of this department have been accepted without question by the Federal Reserve Board.

[blocks in formation]
« PreviousContinue »