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# STATE BANKS IN FINE CONDITION RICHMOND, VA- Special.- Declaring that the State banks in Virginia are in better condition than ever before in their history, Charles C. Barksdale, chief examiner of banks, yesterday submitted his annual report to the State Corporation Commission. Mr. Barksdale shows that there are 247 banks in active operation and that during the last year there was just one failure, that of the Augsburg Bank, at Rural Retreat. Because of the rigid examination Mr. Barksdale believes that the rights of depositors are more efficiently safeguarded than ever, that the officers are giving closer attention to business and that everything is in correct order in all the institutions. The examinations are made at such time when least suspected, and it has happened that when one examination has been completed another examiner has appeared in less than ten days to take another squint at the books. Among the recommendations which Mr. Barksdale makes for the betterment of the existing laws, and for the uniform conduct of all the banks, are these: The enactment of a statute requiring all banks to maintain an adequate reserve. The present law is silent on this point. An amendment to section 1164 of the Code, providing that the total liabilities of any corporation or person to any bank shall not exceed 25 per centum of its capital and surplus, excluding, in computing this 25 per centum, bills of exchange drawn in good faith against actual existing values, and also excluding paper secured by warehouse receipts, the actual market value of such stored products being 25 per centum in excess of the amount loaned. Section 1164, as it now stands, limits one person's or concern's liability to any bank to 25 per centum of the capital and surplus, exclusive of bills of exchange and "commercial or business paper," but permits this 25 per centum to be exceeded without limit upon the adoption of a resolution signed by a majority of the board. The present statute, in my opinion, is far too lax, and places no restriction whatsoever upon the board of directors in the matter of excessive loans. An amendment to section 1164 to prohibit banks from loaning money upon the collateral security of their own capital stock. There is such a provision in the national banking act, and it should, in my opinion, be incorporated into the Virginia banking law. The enactment of a statute providing that any bank desiring to organize shall, before commencing business, procure from the Corporation Commission a certificate authorizing it to do so; requiring that a thorough examination shall be made into conditions, and the character of the persons desiring to organize, and authorizing the Corporation Commission to refuse to issue such certificate should the character of the persons be shown to be such that, in the judgment of the commission, they are not proper persons to engage in such a business, or should it be clear that business conditions would not warrant the establishment of another bank in that locality. Under the present banking laws, if this office discovers that a bank has been most recklessly operated, and the commission applies to a court for a receiver, the same persons can immediately procure another charter and begin business again. An amendment to section 1170 of the Code, investing the Corporation Commission with power, in its discretion, to make public such information concerning any bank or banks as said commission may determine would promote the public interest. The present statute forbids any officer or employe of the State from making any information relative to banks public, under any conditions, save to such officers and employes of the State as may have occasion and authority to inspect the records containing the information in the performance of their duty. An amendment to section 1168 of the Code, which at present requires directors to make, or cause to be made, an examination "of the moneys of the bank, and a settlement to be made of