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Examiner WingSends Biennial Report to Governor. ECOMME NDATION commends Changes in Laws to Protect Depositors and Stockholders. his tenth biennial report to vernor Vessey State Bank ExamWingfield of this city covers an eresting period of the banking iness in this state, as refers to banks, and the report indithat at the close of business the period of to years, June 30, the banks are in a generally sperous condition. The report the condition of five hundred banks, fourteen private banks, twelve trust companies doing iness in the state on the date of last call, June 14. During the periods covered by the forty state banks, one private and four trust companies were anized: six banks left the jurisby becoming national banks; private banks incorporated as banks, and eight banks fortheir charters by failing to for business within the time ecified by law, making a total net of twenty-nine banks for the of two years. Six banks suspended payments in past two years, viz: Chelsea State First State bank, Onida, Northstern State bank, Newell, Meade bank, Sturgis, Farmers State Mobridge, Henderson State Wessington Why Banks Failed. The examiner traces the failure these banks to various causes, from the failure to maintain required legal cash reserve, large of delinquent loans, negliof officers in conduct of afcarrying exceedingly heavy without good security. Reting from two of the failures at and South Shore two cashcommitted suicide, and several have been given terms in the penitentiary for their violaof the state law. The Newell Bank Failure. Concerning the failure of the Norwestern State Bank at Newell, S. and which occasioned much comduring the recent campaign in state, the bank examiner makes following statement: The Northwestern State Bank of well was suspended on account of generally unsatisfactory condiof its affairs, due to negligence the part of the officers and directand fraudulent transactions on part of the cashier. An examinaof its affairs developed a greatly paired cash reserve, misappropriembezzlement, forgery and Isification by the cashier, and other transactions wherein the officers were beneficiaries. As result of this general misconduct affairs, improper assets aggregatmany thousands of dollars were mitted. 'Shortly before the suspension of bank the capital stock was transto an entirely new managewith the exception of the cashwho was temporarily retained on count of his familiarity with the siness. No criticism is due the peowho took over the bank from the stockholders, The causes resulted in the suspension of bank were traceable to the fordirectors and officers in charge. this point it may be well to note wisdom of the provisions of Sec41 of Article 2, Chapter 222, Laws of 1909 as amended the Session of 1911, State of South wherein it provides in part follows: "The stockholders of evbank shall be individually liable,
