Ohio. In the present constitution of Ohio, adopted in 1851, it is provided that "No act of the general assembly authorizing associations with banking powers shall take effect until it shall be submitted to the people at the general election next succeeding the passage thereof, and be approved by all the electors voting at such election." The legislature has since passed no act coming within this provision of the constitution. The supreme court has decided that the phrase "associations with banking powers," as used in the constitution, relates only to banks of issue, and has held that an act passed in 1868, and commonly known as the building and loan association act, and another passed in 1873, to incorporate savings and loan associations, although not submitted to the people, are constitutional and valid. Under these two acts a number of institutions in the state, called banks, are doing a large business in receiving deposits and loaning money. There is no law prohibiting private individuals or partnerships doing a general banking business, except that of issuing currency.

Oklahoma.-A strict banking law is in force requiring all banks to incorporate. The banking board of the territory has supervision, and the banks must make regular reports.

Oregon.-Any private corporation, partnership, or individual may engage in the banking business as freely as in any other business. There are no statutes regulating banks nor any state supervision of banks, but the general rules of law covering banking apply to the banking business in this state. Section 1 of Article XI of the constitution of Oregon provides as follows: "The legislative assembly shall not have the power to establish or incorporate any bank, or banking company, or moneyed institution whatever; nor shall any bank, company, or institution exist in the state with the privilege of making, issuing, or putting into circulation any bill, check, certificate, promissory note, or other paper, or the paper of any bank, company, or person, to circulate as money."

Pennsylvania.-Banks may be chartered by the governor on the application of three or more persons. The minimum amount of capital stock must be $50,000, divided into shares of not less than $50 each. At least 50 per cent. of the capital must be paid in before commencing business, and thereafter 10 per cent. of the whole must be paid monthly until all is paid. A bank chartered under the existing law has power to borrow or loan money, discount negotiable paper, and hold in trust or as collateral security for loans either real or personal property, but it can hold real estate only for use in the transaction of its business, such as shall be mortgaged to it to secure loans, and such as shall be purchased to secure debts owing to the bank. By an act passed in 1901, banks and banking companies are authorized to improve any real estate that they may hold for the accommo

dation and transaction of their business, by the erection, renewal, and replacing of buildings thereon, and to derive rent therefrom. No cashier, clerk, or teller can be a director. No director can borrow more than 10 per cent. of the capital stock and surplus. The banking department, with the commissioner of banking at the head, has supervision over banks, trust companies, and building and loan associations. It is the duty of the commissioner, as often as he shall deem proper, to examine, or cause to be examined, the books and affairs of every such corporation. All stockholders in banks, banking companies, saving-fund institutions, trust companies, and all other incorporated companies doing business as banks, shall be personally liable for all debts and deposits to double the amount of the capital stock held and owned by each. An act of 1889 provides for the incorporation of savings banks without capital, the business of which is to be managed by a board of trustees.

Rhode Island.-State banks can be chartered only by special act of the legislature. Their organization is superintended by three commissioners appointed by the governor. There are only a few of these, most banks being national banks. State banks are not required to advertise statements of their condition, but they must report to the state auditor annually, between November 15 and December 15, the condition of their affairs. These reports are published by the state auditor upon their receipt. In most of the charters now in force is a provision making stockholders liable for all the debts of the bank.

South Carolina.-The legislature may not grant any special charter for banking, but banks may be incorporated under the general corporation law. The total amount loaned to one party must not exceed 10 per cent. of the capital and surplus, except by a two-thirds vote of the directors. The bank notes of any bank in circulation shall not exceed three times the bank's reserve of gold and silver coin and bullion. Reports to the comptroller-general and quarterly publication are required of all incorporated banks.

South Dakota.-Banks of discount and deposit, but not of issue, and loan, trust, and guarantee associations may be organized by not less than three persons. Capital stock must be at least $5,000, or more, according to the population of the place where located, of which 50 per cent. must be paid in before beginning business. The reserve must be 20 per cent. of the deposits. At least four reports showing resources and liabilities must be made each year to the public examiner, who is ex-officio superintendent of banks.

Tennessee.-State banks may be chartered by five or more persons in the same manner as other private corporations, and, if they choose, may couple with the usual banking business the functions of a safe-deposit and trust company, and a title-guarantee company. No

real estate shall be held for more than 5 years that is not necessary for the transaction of the business of the bank. Directors must be citizens of the state, and no more than two-thirds of the directors of any bank can be stockholders therein. Each bank is required to make quarterly statements to the state comptroller of its condition, and "these statements are published. The secretary of state is constituted a bank examiner, and is required to examine, quarterly at least, into the condition of every bank, and report thereon to the state comptroller. Stockholders are not liable except for the payment of stocks subscribed. Banks are authorized by statute, on certain conditions, to issue circulating notes of the denomination of not less than $1, and not greater than $1,000.

Texas.-The constitution of 1876 provides that no corporate body shall be created, renewed, or extended with banking or discounting privileges. A number of state banks chartered before this provision are still in business, but there is no state supervision over them, nor over private banks.

Utah.-Corporations to conduct commercial and savings banks, or banks having departments for both classes of business, may be formed by not less than five persons, with a capital of not less than $25,000, or more than $1,000,000. Private bankers must have a paid capital of at least $10,000. The reserve must be 15 per cent. of the bank's commercial deposits and liabilities, or in cities of 25,000 population or more, 20 per cent. The reserve of the savings deposits must at least be 10 per cent. No loan shall be made to any person for more than 15 per cent. of the capital stock paid in. Every bank, corporate or private, shall make a report to the secretary of state at least four times a year, which report shall be published in a newspaper.

Vermont.-Banks of circulation, discount, and deposit may be formed under the general law by voluntary association of five or more persons, three-fourths of whom must be residents of the state. The capital must be not less than $50,000 nor more than $500,000. Savings banks, savings institutions, and trust companies are organized under special charters, but are regulated largely by the general law. Savings banks have no capital stock, while trust companies, though receiving savings deposits and usually denominated savings banks and trust companies, have a fixed capital, and the stockholders are liable additionally to the amount of the par value of their stock. The treasurer of every savings institution and trust company is required, on or before the 10th of July of each year, to report to the inspector of finance, showing accurately its condition at the close of business on the 30th of June.

Virginia.-Banks of circulation may be chartered by the corporation commission. They are subject to the general corporation laws. Banks shall not loan to one person or to one firm, including the loans

to the several members thereof, an amount exceeding one-tenth of the value of its capital stock. Once in 3 months the directors are required to examine and settle the accounts of cashiers. Statements of financial condition are to be rendered to the auditor of public accounts at such times, identically, as national banks are required to make their statements to the comptroller of the currency, and such statements (condensed) must be published in newspapers printed in the cities where the business is being carried on. On request of holders of one-fifth stock, the auditor of public accounts may appoint a special examiner to examine and report the condition of the bank.

Washington.-Banks may be organized under the general corporation law by not less than two persons, with a minimum capital of $25,000, divided into shares of $100 each, and three-fifths to be paid in before commencing business. Banks shall file yearly on the first Monday in June, with the state auditor, a verified report of their financial condition.

West Virginia.-Banks may be organized by not less than five persons, subscribers to the stock, with a capital of not less than $25,000 nor more than $500,000. A state bank examiner is appointed and required to examine the affairs of each bank between March and October of each year, and to publish a statement thereof in the county where the bank is located. Savings banks are not joint-stock companies. They are managed by a board of not less than thirteen trustees, whose responsibility and fitness is certified to by the judge of the circuit court of the county where the bank is located. A reserve of 10 per cent. of the deposits is required.

Wisconsin.-Banks may be established by not less than three adult residents of the state, with a capital of not less than $5,000, or $50,000, according to the population of the place in which the bank is to be located, the shares of stock to be $100 each, and the period of incorporation not over 50 years. There are strict provisions as to cash reserve and limit of loans, and as to pledging the assets of the bank as security. Stockholders are individually liable to the amount of their stock after payment in full for the stock itself. There is a state banking department under the control of a commissioner of banking with broad powers of examination and supervision, whose duty it is to require a bank to make good any impairment of its capital on penalty of receivership proceedings to be brought after 60 days by the attorneygeneral. Strict reports to the commissioner and publication of financial condition are required under penalty. Mutual savings banks may be organized by from twenty to fifty persons, three-fourths of whom must reside in the county where the bank is located.

Wyoming.-Banks may be incorporated under general laws by not less than five persons, with a minimum capital of $10,000, and a

maximum capital of $100,000, according to the population of the place where located. The shares must be $100 each, and 50 per cent. of the stock must be fully paid in before commencing business, the balance being required to be paid from time to time as the by-laws may direct. There must be not less than five directors, each of whom must own in his own name at least 1 per cent. of the stock up to $200,000, and the per cent. on the bank's capital over that amount; and the directors, collectively, must own at least one-fifth of the stock. Quarterly statements are required, which must be published in the nearest newspaper, and filed with the county clerk of the proper county and with the state auditor. The state examiner must examine and report on all banks incorporated under state laws, including savings banks and loan and trust companies, at least once a year.

bank

THE BANKING LAW OF CANADA Incorporation and Organization.-Under the act,' banks of deposit, discount, and calculation may be incorporated or chartered to not less than five nor more than ten provisional directors, who, for the purpose of organization, may receive subscriptions to the capital stock, which must not be less than $500,000, divided into shares of $100 each, $250,000 of which stock must be paid to the minister of finance and receiver general. On payment thereof, the provisional directors are authorized to publish a call for a meeting of the subscribers to be held at the chief place of business of the bank, at which meeting the subscribers shall determine the day on which the annual general meeting of the bank is to be held, and shall elect a board of directors to be composed of as many persons as they think necessary, not less than five nor more than ten, to hold office until the annual general meeting in the next year succeeding their election. Regular directors being elected, the function of the provisional directors shall cease. Charters and acts of incorporation are continued in force until July 1, 1911.

Qualifications of Directors.-Each director is required to be a holder of the stock of the bank, the amount of his holding being gauged by the amount of paid-up capital stock of the bank as follows: Where the paid-up capital is $1,000,000 or less, each director shall hold stock on which not less than $3,000 has been paid; when the paid-up capital is over $1,000,000, and does not exceed $3,000,000, each director shall hold stock on which not less than $4,000 has been paid; and when the paid-up capital exceeds $3,000,000, each director shall hold stock on which not less than $5,000 has been paid. A majority of the

1 Assented to May 16. 1890; entitled. An Act Respecting Banks and Banking, the short title of which is "The Bank Act."