As an indication of the growth of the Illinois State banks, their assets have increased $383,976,591 during the past biennium. Sixteen trust companies have been granted State charters, while seventeen National banks have qualified to accept trusts. There has also been an increase of seventeen foreign trust companies doing business in Illinois during the same period.

An effort has been made during the present administration to work out an efficient system of bank inspection, which, through cooperation with the banker and friendly advice where it is needed, will correct defects and prevent disaster. Only those men who could qualify as experienced in banking methods and prove themselves thoroughly conversant with the duties of their office have been chosen as bank examiners. As a result of this effort, the Illinois State bank examining system now ranks amongst the most efficient in the United States.

Nothing could demonstrate more strongly the solid foundation upon which the banking structure of the State now stands and the improved manner in which the banks are being operated and safeguarded than the record they have made in the past two years-embracing sixteen months of the stress and trial of war and eight months of the dislocation and strain of reconstruction.

The records of this office show that to-day there are more State banks in operation, with larger capital and surplus and greater resources, making bigger dividends and with a more striking immunity from failure than ever before in the history of the State.

The work of the Building and Loan Department of the office is constantly increasing and the assets of these organizations show an increase of $14,234,003. Thirty-two new associations have been organized since January, 1917.

A knowledge of these facts must necessarily give inspiration and fresh courage to all business men, for our economic history shows that every commercial panic and business prostration in the past has been precipitated by financial disorders and banking crises. Assured of healthy banking conditions and an abundance of money and credit to meet all natural and legitimate requirements, the commercial, agricultural and industrial enterprises throughout our entire country can proceed with their plans for the present and the future with unexampled confidence and resolution.

The work of other departments of the Auditor's office has also been greatly increased as a result of the addition of special funds created by legislative act to carry on the enterprises of road building and water way extension. This has resulted in the adoption of more efficient accounting methods.

It is the desire of the Auditor to accord the public every possible attention to the end that those having business with the office may have their wants attended to expeditiously, efficiently and satisfactorily.

THE STATE TREASURY.

BY FRED E. STERLING,

State Treasurer.

HE OFFICE of the State Treasurer has been conducted along safe, conservative, business lines during the biennium, without the loss of a cent to the State, and the treasury is now in a most healthy condition.

When Treasurer Len Small assumed office on January 1, 1917, he found a balance of $289,908.51 in the revenue fund. When he turned over the office to his successor, Fred E. Sterling, on January 13, 1919, there was a balance of $12,887,448.03 in the revenue fund.

Sufficient funds have been on hand at all times, during the biennium, to meet promptly all obligations of the State, with a splendid working balance. All warrants are countersigned and ready for payment within half an hour after they reach the State Treasurer's office.

Plans have been matured and an appropriation of $8,000 provided for the remodeling and improvement of the State Treasurer's office in the Capitol Building during the present year, which will make for efficiency in the clerical force of the office and also add materially to the safety of the funds and securities which are carried on hand. The Treasurer has worked out a scheme for the improvement which will conserve the limited space which is allotted to the State Treasurer's office and which will provide more healthful working conditions for the employees of this important department of the State Government.

Important changes in the method of handling State funds by the State Treasurer will be inaugurated on January 1, 1921, as the result of legislation passed by the Fifty-first General Assembly, this reform being favored by the present administration. Under the terms of the newly-enacted law, on the first Monday of February and on the first Monday of August, 1921, and of each year thereafter, the State Treasurer will cause a notice to be sent to each regularly established National and State bank doing business in this State, and also cause to have published at least once in one newspaper of general circulation printed at the county seat of each county in the State, a notice indicating that on a date named therein, not less than one month after the date of such notice, he will receive sealed proposals for the deposit of the public moneys in his custody or control. There will be two classes of depositaries, active and inactive, and separate proposals will be obtained for each class. In calling for proposals the State Treasurer will indicate that separate quotations of rates of interest may be made upon such State moneys as shall be deposited in such bank and permitted to remain without diminution for thirty, sixty or ninety days, or for longer periods. Each proposal shall state whether for active or inactive deposits, the amount of deposits sought by such proposals and the rate of interest such bank will pay on daily balances. Within ten days after the last day named for the receipt of proposals, such proposals will be publicly opened by the State Treasurer in the presence of the Auditor

of Public Accounts and the Director of Finance. The State Treasurer may reject any and all proposals and may ask for new or additional proposals. Before approving any proposal the State Treasurer will obtain the last official statement of resources and liabilities of each bank submitting a proposal, as reported to the Comptroller of the Currency or to the Auditor of Public Accounts, as the case may be. The Treasurer will endorse on the proposals either the words "Approved" or "Rejected" and a bank whose proposal is approved will be eligible to become a State depositary for the class of funds covered by its proposal. The State Treasurer shall seek to have at all times not less than twenty banks which are approved as State depositaries for inactive moneys. All proposals will be filed in the office of the State Treasurer and will be open at all reasonable hours to public inspection.

The State Treasurer will also publish in pamphlet form a list of the banks approved as State depositaries of public moneys, with a statement of the rate of interest offered by each and the class of deposit for which its proposal was approved. All banks designated as State depositaries will be required to deposit with the State Treasurer securities equal in market value to the amount of moneys deposited. The interest on deposits of moneys made under the provisions of the act are to be computed upon the average daily balance of all classes of funds on deposit and must be remitted to the State treasury on or before the first Monday of each calendar month, such remittance to be accompanied by a statement, in duplicate, one copy of which statement must be filed in the office of the State Treasurer and the other in the office of the Auditor of Public Accounts. The State Treasurer will make a monthly report to the Governor giving a detailed statement of the balances on deposit in the several banks, the amount paid by each such bank as interest on moneys deposited and the amount in such bank subject to draft at the close of business on the last day of the month for which the report is made and on the last day of the month next preceding. Monthly statements by all State depositaries will contain a certificate of the cashier of the bank or of an assistant cashier, verified by oath, that no other fees, perquisities or emoluments have been paid to or held for the benefit of any public officer or any other person, or on account of the deposit of such moneys and that no contract or agreement of any kind whatsoever has been entered into for the payment to any public officer, or any other person, of any fee, perquisite or emoluments on account of the deposit of such moneys. The State Treasurer will keep in his office a record showing his account with each depositary, active or inactive, with entries therein showing the dates and amounts of each deposit, rate of interest, withdrawals and date of each and balance on deposit.

T1

THE OFFICE OF THE ATTORNEY GENERAL.

BY EDWARD J. BRUNDAGE,

Attorney General.

HE OFFICE of the Attorney General during the past two years has had a large number of new and intricate questions to deal with.

The war between the United States and Germany created many questions concerning the rights of aliens, the power of the Governor in time of war, the status and powers of public officials and the effect of the war time powers of the Federal Government upon state statutes.

The adoption of the new Civil Administrative Code, consolidating the numerous independent State agencies into nine principal departments, also brought many new legal propositions for solution.

The increase of legal work before the Public Utilities Commission has required the attention of a large corps of assistants. Perhaps the most important case arising in this department was the attempt to supersede the Illinois statutory passenger rate of two cents per mile by an order of the Interstate Commerce Commission. The litigation was finally won in the Supreme Court of the United States and the railroads compelled to make restitution of the excess fares collected. It is estimated that more than three millions of dollars were refunded to the travelers of this State.

The department was equally successful in preventing unauthorized increases in intra-state telephone and telegraph rates during the period of Federal control and operation.

The Attorney General has been called upon from many parts of the State to enforce the law where local machinery was ineffective-especially noticeable being the prosecution of the East St. Louis rioters.

In addition to representing the people in cases in which the State is involved, it is the duty of the Attorney General to furnish legal opinions, in writing, to State officers, State departments and various State's attorneys upon matters which relate to the duties of their offices. The number of such legal opinions is on the average of twenty daily, many being upon important interpretations of the statutes.

THE

THE OFFICE OF SECRETARY OF STATE.

BY LOUIS L. EMMERSON,
Secretary of State.

HE BUSINESS of the office of the Secretary of State during the past biennium has increased remarkably. The fees collected by each department have grown enormously and new legislation has added greatly to the duties of the office.

The Fifty-first General Assembly enacted a new corporation act which practically recodifies the corporation laws of the State and makes many material changes. One of the amendments decreases the fees for incorporation more than 50 per cent. Another provides for a franchise

tax on all corporations, which will bring in several million dollars annually. The new securities act, commonly known as the "blue sky" law, places the supervision over securities on a new basis. Instead of providing for the issuing of licenses it requires the submission of information by companies desiring to dispose of securities and gives the Secretary of State the right to use his judgment on whether or not the application shall be filed. Several changes were made in the automobile laws, the most important of which provides for special license classifications for trucks, tractors and automobile dealers.

Notwithstanding the reduction in fees for incorporation, the income of the corporation department will not be reduced on this account. During the month of August this year, the first month under the new law, the corporation department received in fees $43,137.41, whereas during the same month of 1918 it received only $16,347.50. The increase in the fees is due to the fact that many business enterprises heretofore conducted as co-partnerships because of high fees for incorporation, have incorporated under the provisions of the new act.

The growth in the volume of business handled by the automobile department during the past biennium has been phenomenal. Each year the number of licenses issued has far exceeded the most optimistic forecasts. Up to September 25 of this year, 460,769 automobile licenses had been issued as compared with 389,761 for the entire year 1918, an increase of 71,008. The receipts up to September 16 of this year have been $3,187,860.55, as compared with $2,764,330.28 for the entire year 1918.

The following is a table showing the amount collected in fees by the automobile department and the number of automobile licenses issued each year from 1911 to 1918 inclusive:

In 1918 there was collected from foreign corporations approximately $500,000 in fees which had long been due the State. As a result, the total collections of the foreign corporation department were $675,989.83 as compared with $153,565.00 collected the previous year, an increase of $522,424.83. Most of the other departments also made. large increases in fees collected in 1918 as compared with 1917. The domestic corporations department collected $493,730.70 in 1918 as compared with $422,969.65 in 1917; the anti-trust department, $51,657.83 in 1918 as compared with $49,437.15 in 1917; and the securities department, during 1918, the first year of its operation, collected $19,271. The total miscellaneous fees received in 1918 were $1,261,532.06 as compared with $648,710.02 in 1917, an increase of $612,822.04. The grand total of the fees collected by all departments of the Secretary's office in 1918 was $4,025,862.34 as compared with $2,237,544.71 in 1917, an increase of $1,788,317.63.