The intelligencer. [volume] (Lexington, Mo.) 1887-1891, 1889-02-09

state. Comparing our state with Iowa,
Illinois or kansas we are sadly i'm the
rear. What has been the result of such
| legislation? Kansas nearly fifty years
our junior as state and incomparably
inferior in resources has, according TO
McNally's register of banks, 1852 banks,
whilst Missouri has 435. After allow
ing for liberal number of "wild-cat"
and 'sage-brush" banks, in that state,
it is plain that Kansas is far better
served in the matter of banks than Mis-
| souri, is. A district of South Missouri
containing some fifty counties and
| worth in resources more than the
whole state of Kansas, is almost with
ont banking facilities and sadly needs
capital. There is vast river of money
| emptying itself out of the state annual
ly in the way OF interest on loans of
eastern money. Under proper banking
laws this would soon cease entirely. L
| am extensively acquainted with the
west and | know of no such chances
tor business as in developing South
Missouri. There is not a state in the
union comparable to Missouri; she is
dependant on the outside world for al
most nothing except what requires
tropical climate, aud gold and silver
mines. Her greatest need (oHtside of
her rich and old settled counties like
ours) is good banks.
Let legislation proceed in the future
as in the past until the banks are all
| driven into the national form and for
| hidden absolutely to lend on real estate
and the drain of money for interest on
foreign loans must be greatly increased.
The preamble to the original consti.
tuition of this state declared that this is
FREQ and independent republic under
| the name of the state of Missouri.
From time to time in the history of the
state it has been and will he necessary
for 1t to borrow money. Its legislation
should be snch as to allow the growth
of substantial system of financial in
stitutions on which it can depend to
lend it ten or twenty millions at any
time it may need it and not depend on
foreign markets to take it's loans.
From this it is evident that it should,
in the matter of taxation, deal directly
with the banking corporations created
by itself and not leave them to the
variable policies of short-lived county
courts. But individual bankers should
] be left in the hands of county courts.
| Why, it will be asked, has no banker
spoken of this before. Because law
that keeps down competition in bank
ing is naturally borne with a good deal
of philosophy by bankers. The law
ought to be short sharp and decisive,
something like this: When a bank has
absolutely lost one-fourth of its capital
it should be required to make it good
at once under penalty of the law tor
receiving deposits when in a failing
condition, or it should publicly reduce
its capital stock so that it may be
known. When it has lost one half of
its capital it should be required to noti-
fy the secretary of state who should
appoint receiver to wind it up. This
would leave no chance of loss to
customers of the banks and would let
the bankers know exactly where the
line is that divides legitimate business
from criminality. Before the end OF
the present state administration l be.
lieve there would be q hundred new
banks in south Missouri. They would
represent vast development of bust
ness in-what is now, as to a large part
of it, virgin country.
There is project for law for ex-
amining banks. There is but one i'm
portant feature about that; it will
make one more salaried state office
The national system has amply demon
strated that examinations are of nc
precautionary value. The reason o.
this is plain. If all examiner goes into
u bank and looks at its notes he does
not know whether they are good or
not, yet it is Oh their goodness that the
soundness of the bank rests. With the
banks that now exist in this state al
examiner would be busy every work,
ing day of the year, as l believe, to
count their cash alone, without even
looking at their notes. The true plan
is, undoubtedly, to make 1t TO the
interest of the banks to watch themscl-
yes, and cease to do business before
they have encroaChed on the funds o
others entrusted to them as deposits.
The subject of the taxation of banks
deserves more than a passing notice
!! Every bank should be allowed to
accumulate large surplus not subject
to valuation for taxation. Surplus is q
fund of wh hich the shareholders deprive
themselves of the use in order to make
the bank stronger, to make up losses
that occur and such like purposes
|
already bad but the fact will only
develop in the future. The surplus is
lying there to make good the deficiency
when ii shall have become known. Ii
is bad policy to tax the surplus and
is unjust. IL the shareholders are will
ing to be out of the returns on this
fund the public is entitled to the pro-
lection it affords. In this county banks
| ,nfn hat
and surplus has been taxed out OF
existence. The law should either
direct that the surplus or safety fund
should not be considered an addition
to the taxable property of the bank
until il is over one halt OF the capital,
up TO certain sum,or else there should
be general rate on all banking
corporations payable directly to the
state in lieu of all other taxes.
The publication OF statements il
valuable for statistical purposes and
for little else, but should be retained.
They answer this purpose fully il made
twice in each year. But no statement
should be called tor except of date o.
thirty days antecedent to the call; mol
should the second in any year be made
within the same six months as the first
L am connected with bank tha
, originated before any other now il
existence in the state, and which in it,
: time has been profitable to few ant
) OF much use and convenience to a grea
/ multitude; and by it no one has ever
. lost one cent although il has handled
| millions of dollars of the money 0
: other persons, during nearly hal
= cenlury OF existence, and | wOult
S willingly see its existence continued
, yet to me, personally, it is q matter o
no importance whether the banki ns
laws OF the state remain as at presen
= or are changed III any maune
+ whatsoever. But pride in the devel
S opment of our great state can not leav
: me indifferent to the fact that fallaciou
a legislation is greatly impeding he
progress in the development of he
i resources, and that just banking Law
+ would result indirectly in giving worl
1 TO many palr of hands now idle.
i AS a party man | have not We've,
II with indifference the fact that tht
y banking interests OF three republican
} states adjacent to us are going saheat
z with giant strides compared with ou
It own; but there has never before b. e
: a time when it seemed opportune t
( agitate the matter. But now every on
i. can see that the welfare of our part
t demands action in this matter. Il
g neglect it longer will be to confess on
II inability or indisposition and to invit
II the financial interests to look to ou
opponents for suitable legislation. Th
8 present time seems oppoifune ais
I because the promise of this administra