The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1881-09-01
BANKING.
Its Character, Extent and Importance In
Texas.

Its Character, Extent and Importance In
Texas.
Texas is so large, her people and indus
tries are scattered over such vast domain,
and the transactions within her borders are
generally on SO grand scale, that stronger
necessity exists here than elsewhere for in
stitutions whose business it is exclusively
to handle the representatives of these differ
ent values-money and exchange. Cotton
and cattle, lumber, WOOL hides and the
almost myriad enterprises and transactions,
in nearly all of which foreigners and foreign
capital are interested, are carried on with a
magnitude that prccludes the direct use of
money in nearly all of them, not to speak
of the great distances to be traversed
and the heretofore disadvantages of
travel. 1t can be truthfully said in the out
set, however, that the banking business in
Texas has grown with the state, and has ex-
banded with the same rapidity rs the other
departments of trade. The increase in the
number, and the enlargement of the vol
ume, of the operations of the various inst-
tutions of this character, has been, indeed,
wonderful, until to-day we find, in round
numbers, l35 banks in the state, operating.
as approximately as the available data
shows, upon capital of nearly B,O0O,O0O,
and backed by a property of perhaps three
times that value. Of this large number,
four-fifthS are private institutions whose
exact capital and resources it is difficult to
determine. They are scattered over the en-
tire state, no town of any consequence
specially being without its bank. Like the
arteries of the human system, they
carry the lifc-blood of commerce into
every portion of the commonwealth.
But with this large capital and excellent ex-
change facilities, Texas is yet greatly behind
in the appliances for cheaply and easily
handling the immense burden of values
which her domain creates. In the older
states they have in this particular, factor,
which is comparatively rs yet unknown
here by which additional thousands are
carried into the avenues of trade, and move
to subserve the wants of commerce. This
clement is the savings bank, through which
the surplus of the laborer is brought into
use. Here, at present, the laborer is simply
the laborer and consumer, as q general
thing, whose wages are never brought
together and utilized in the more preten-
tious of the movements of Industry and
great enterprise, but for these large capital
lists and outside capital are depended
upon, almost entirely. Yet, this is q
want easily supplied by time and
population. Another important fact in
connection with Texas banking Is the intel
ligence that, notwithstanding the growth
ofindustry and increase nnumber ofbanks,
the aggregate capital of the state has not
expanded in proportion, and most of the
money upon which bankers of our state are
trading is that brought in by tourists, trav-
elers and immigrants. But this fact dis
closes another very encouraging one, and
that is that the surplus caIital is being re-
placed in the state by machinery, modern
improvements and appliances better calcu-
lated to rapidly dew the wealth which
remains in such pro:,.On. II must be re-
mcmbered that thu, is q constant influx of
immigrants and travellers, nearly all of
whom bring some means, which is first de-
posted and then invested, and an aggregate
sum of millions is thus annually furnished
for the operations of the Texas banker
But the chief business in this line here is
| the handling exchange, the great bulk of
which Is on New York and St. Louis. In
| this one feature mostly consists what differ
ence there is in the banking business of the
south and southwest, and that of the north
and east. There, where money is il album
dance, and investments comparatively few,
deposits are extensive, aud in fact the order
of the day, the proportion of deposits and
resources to capital being as ten and fire.
quently twenty to one, while here IL is rare
to find like proportion greater than two to
one. AS n result, the eastern banker loans
and speculates upon his $1,000, 900 or $40,
co., 900 deposits, grows enormously rich or
fails, but never finds II necessary to call
into active requisihon his own
100000 or less or more of capital.
But in Texas this feature and this means of
operating is wanting, and the profits Of our
banskrs are to certain extent dependent
upon, and his business mainly confined to,
the amount of exchange handled, together,
with the particulars before mentioned.
Cut the profits are immense and capital
I ight come by millions from eastern GEN.
t. and still find here better returns than
are afforded it there. 1t must be borne in
mind that banking is only species of mer-
chandise whose subject is money and its
representative instead of boots and dry
goods, and as these latter in the new. states,
and among them Texas, are higher than IN
the east so is money and exchange held
here at higher premium and manipulated
with better profits And us the
former have their seasons of appre-
citation and decline, so with the latter. Or
dinarily, the simmer with us of the south.
west Is u long, dull, and dead season, and
money Is scarce and in demand. II is then
that the banker and his customer are pay
ing the premium, but when the fall and
winter carry our magnificent productions
to the four quarters Of the globe, the bal
ance is IN our favor, and discount takes the
place of premium. The state at large
however, under this unfortunate arrange
ment is playing u losing game ut oil seasons
Of the year. The summer, hough, which
Is Just drawing to u close, has been an ox-
EXCEPTIONALLY easy one In banking and money
circles, In consequence of the vast
amount Of capital brought In from
tho east aud west to construct
the riynnlc railroads now being extended
In every direction. Money has been kept
within Tie state, the premiums heretofore
paid have been saved, and the merchant
everywhere has rcaped an additional and
rich harvest of good profits. Upon the
whole, 20 far as the present is concerned,
the state has netted alarge sum of money.
Again, we may say of this line OF business
here. that money and exchange are from
one.iourth to ono-haf cent higher In the
smaller and country towns IN Texas than in
the cities. This is, Of course, owing to the
same causes that make goods In the west