The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1875-01-13

pubic employment, because II In
wolves suspicion, mistrust and
slander. To purify Office, we must
dignity not degrade it. Respect tor
law will not be increased by holding
up those who administer it TO public
contempt The prOpriety and justice
Of official acts should be examined
with more candor, and honest people
ought not to take their opinions on
trust, but fairly aud dispassiOuately
investigate for themselves. Good
citizenship requires that we should
.scrutinize closely the antecedents.
character and fitness Of candidates
for Office, and if they possess the
necessary qualifications, and are
elected, it alike exacts Of Us that we
should give them a constant and
trustful support while in the public
service.
BANKS, SAVING FUNDS AND TRUST
COMPANIES.
We have in the State one hundred
and ninety-nine National banks,
whose capital is about $52. 100000;
and one hundred and seventeen
State banks aad savings institutions,
whose capital actually paid in, as
per Auditor Generals report ofIS74,
was S8,37O,l6s s5, in all three hun
dred and sixteen banks and savings
institutions, with an aggregate cap
ital Of $50, 600, 000 For the proper
regulation Of National banks We are
dependent on the National govern
ment For the regulation Of State
banks, savings funds and trust COM
panies the State government is re-
sponsible to its people, and as it Is
probable bin for the enactment Of q
general law, in compliance with the
provisions Of the New Constitution
for the organization Of banks, may
come before you at this session, / in.
vite your special consideration thereto
In my annual message | called at
tention TO the vicious practice that
had grown up in the State. Of ineor
porating banks, savings and trust
companies without fixing proper and
definite limitation to their powers and
privileges and providing for theiI
enforcement In the enactment Of q
general law, whereby they can be
organized without limit, it is Of the
highest Importance to the business
interests Of the people, and the ma
terial development Of the State, that
their powers and privileges be clear
lY defined. and any violation thereO.
should subject them to proper penal.
ties or the forfeiture Of the charters
The charters Of these banks and
institutions were mostly granted with
in the past few years, and many o.
them possess powers and privilege;
which should never have been con-
ferred. The Auditor Generals re
port of1s74, shows they had ovel
s23. .OO0 600 of deposits Some oi
them are averaging $40, $50, $50 and
$40 of deposits for each dollar oi
capital stock paid in; depending, IT
some instances, almost entirely upOr
their deposits for banking facilities
Tbe BIZ 9tta 9btaiqsd By 20 offering 3 9sl95 gsae95
back to the community in which they
are borrowed at higher rates Of in
terest.
These banks and savings institu
tons act as "middlemen" between
the lender and the borrower, result
ling in the rates Of interest advancing
wherever they are established
That these banks and Institutions
with rare exceptions, charge Interest
greatly in excess Of legal rates is
notorious that excessive rates O
Interest enrich a few and impoverisl
the many IS equally undeniable, anC
the public welfare demands that
policy so injurious should be avoided
The large majority Of the State IN
stitutions are STYLED savings banks
with a few exceptions, their resem-
blanee to properly regulated saving:
banks exist only in name Savings
banks uFoperlv organized. are man
aged for the benefit Of their deposit
ors: the nature Of their inyestmen
prescribed by law, and the use o
| their deposits for general q. sc luntinl
purposes usually prohibited. In
stitutioas Of the latter ehaacter ar'
highly beneficial and should not b
eonfounded with those who seek de
posits for general discOUntiag anC
| banking purposes, and might be NOR
properly designated as banks Of de
post and discount Banks Of ds
count should be prohibited from pay
ing interest on deposit The author
lity to borrow, that they may haT,
capital to lend, give then
great advantages. a monopoly 10 th'
community where located over ind
viduaI borrowers, often compelling
/ the latter 10 pay whatever rates
interest the former may demand
Another objection thereto, suggested
in nv last annual message, | repea,
4Noney viii always f0w to bank
paviug interest on deposits, and thi
large Surplus thus aggregated, &c
dneed by attractive offers, is sent q
the great money ceDters, where
gives more impulse to speculation
while the sections from which It
drawn suffer. in all their enterprise:
from the higher rates they are con
Delled to pay for the money remain
/ inc AT home" The abundance an
/ ebeapness Of money, The past yea
at the great money centres, and II
searcitv aud high rates Of interes
elsewhere. have verified the view
then EXPRESSED. II an entire ref0rr
! Of this evil il rot practicable, it ma
he greatly decreased. bv DrobIbitin
hanks of discount frn'n tie PaymCa
of a greater rate Of interest than fou
ner cent and TO the extent reduced
he ability Of individuals 70 boTro'
,nonsv AZ lawful rates Of interes
would be increased. Money woai
remain aud be used al home
to the mutual advantage Of bot
borrower and lender That "a
itional banks are permitted 20 pay u
terest On deposits, ani some do So J
4 no reason why 9 state should SAM
ton a policy 50 foreign TO the prime
,lss Of sound banking and prejudicia
= the interests of It's citizens. II
70 be hoped the time is near wbe
tho National Government viii reeog