Brenham weekly banner. [volume] (Brenham, Tex.) 1877-1907, 1890-09-25
STATE BANKS.

STATE BANhS.
The progress of banking matters
in the State of Texas presents an in
teresting inquiry to the observer,says
the American Banker. No State ~
the Union has displayed a financial
development so constant, and of late
so rapid, as the commonwealth to
which we refer. 1t was shown time
ago that for a given recent period
there were more National banks
founded in Texas than elsewhere,
and the energy and enthusiasm
among the business men which had
made such a record possible, does
not seem to be diminishing. There
are many small towns in the State
which are ripe for the founding of
banking institutions, where in fact
the call for the advantages which
such institutions offer, is imperative,
and where at the same time, there is
a disposition to contribute largely
to the establishment of a sound
banking enterprise. One is struck
by the curious and not inexplicable
fact that the banks which are being
founded in Texas ale exclusively
based upon a charter from the Fed
eral Government. In other States
banking capital is nearly evenly di-
vided between State and National
banks, while the State of Nebraska,
with its many little communities,
the opposite tendency, viz,
to procure its banking charters from
the State rather than from the Gen
eral Government. The reason for
this interesting contrast is as clear
as it is instructive, for Nebraska has
adopted an admirable law for the in
and regulation of banks,
whereas Texas is wholly unprovided
with either an enabling or intelligent
State banking law. The
absence of such law in the latter
State has compelled capitalists to
National banks. 1t might
De asserted that this would not. pre-
'ent the organization of private in
and it certainly does not,
,ut the fact remains that capital,
sensitive and easily discouraged,
prefers the sanction of State or Ma
ional authority before it can be
to come out of its secure
places. Does the absence of a law
or the incorporation of bank act
S detriment to the material vel
are of the State of Texas? 1t
you'd be difficult. to answer this
uestion with satisfactory degree
f certainty if we should contem-
late merely the statistical record
f her growth in trade and industry,
Or that has been advancing in al :
lost geometrical progression. Look '
ather for solution of the question
D the increasing number of small +
communities in that State, which are
apable of supporting bank of
loderate capital, but which are de-
AIRED from that privilege because
he National banking system cannot
ccommodate itself to their smaller
eeds. Now, bank operating IN a
rowing town, where industrial
over lies dormant but full of
romise, should be able to loan CO.
iQusly, subject to the dictates of
rdinary prudence, i'll every direc-
on. This the National banks can /
OF do, for they are enioined at the I
cry outset from making loans on
sal estate. 1t is this disability on
lie part of this otherwise admirable
anking system which places it be-
ond the reach of many vital bust
ess centres in Texas, to the detri- {
lent of a harmonious financial {
rowth. We should like to see this
uestion taken up by the Texas
ankers, who are an intelligent and
.r-seeing body of fnanciers.