The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1878-02-28
Banks and Banking.

The bill to restore free banking to the
country, lately introduced by Senator NJ.
Q. Butler, has met approval and oncour-
agement in every direction, notably in
the Southern States. 1t 10 especially
gratifying to find such commendatioh
coming from O quarter where interests
and habits might have been expected to
create opposing tendencies. In recent
letter to the Raleigh Observer, we find
quoted che remarks of prominent off,
ciai OF ONO OF the leading national banks
In that city. He ia represented as ex-
pressing hearty concern for the restors-
tion of the old State banking syntem as
one, among other commenda5ie features,
better suited to the habits and practices
Of our people than any other; but above
all. 40 having the qualities of economy
in management by which aid is given to
the operations of business ct reasonable
charges. He says that money could be
easily loaned by such State banks at
rate Of interest not exceeding per cent
per annlm; whereas the national banks
cannot or will not agree to accept less
rate than II per cent. There are many
reasons for this. Among others, the cap
ital invested in them is largely foreign ::
consequently, there is not the slightest
tie of sympathy between lender and bor-
rover. Again, these banks are restricted
by their constitution 70 q circulation not
so large as their capital stock, which is
frivolously small in proportion to the
needs of business. Their ability, there
fore, to enlarge their powers Of accommo-
dation is dependent upon deposits. De-
positors expect TO draw interest upon
their money, and this is added as an ad-
ditional charge s,en the borrower. This,
then, with the ordinary items of expense
incidental to banking operations, incrsaa-
es the inability of the national banks. if
it were their desire or policy to do so, to
make loans at q less rate than IL per
cent. And the national banks do not
look 30 much to loans as the principal
solyce of their profits as to buying of
exchange, and such operations as we're
once the peculiar province of commits
sion houses. If they had the amount of
currency needed to give ease to the coun-
try by liberal lc ans, it is not their policy,
to use 1t in that wey. The whole system,
is no; in harmon, with the customs OF
our section.
The State bank system had its defects
and might have had its abuses. Expert
ence of theae in their past history would
probably avoid recurrence of them,
should they be revived. For this there
Is an urgent demand. With the rescind.
ing o. tho tax which now represses them.
they would spring again into existence.
They would invite as capital the hoard.
ings and the earnings of the thrifty who
look for safe places of investment. They
would attract the capital of the more
prosperous, which :,..sitates to 20 abroad
which is distFuatfill of manufacturing
ventures, but whic6 viii not put conf
dence in the national banks, owned and
controlled abroad, and complicated in
the destiny Of all similar institutions over
the country, all trembling in accord at
one breath Of disaster, all shocked by' the
same calamity which aasnils any ono Of
theni, even the most remote. The State
banks, restored to their Legitimate fiinc-
tions, would issue their own currency,
>.,suvii,it iiueraiiY US sne cnioI source of
their profits, and at once give relief TO
the people of the State or the whole
country. Suppoeing that their notes will
be littla below par, that will not impair
their capacity for home usefulness, and
in the transmission of funds abroad the
premium demanded will be paid more
easily than present bank accommodations
aFc now mad.
This relief in connection with tho pas-
eage of the silver bill would seem to our
all that Is needed TO re-
aturu prosperity 70 inc south. a larger
circulation ne must hare, and that we
will never have, dependents upon the
banks alone.