The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1891-02-12
TIE BANKS AND THE PEOPLE.
Reasons why They Should be Friends and
Not Enemies-The False Cry of Con-
traction and the Circumstances
of its Origin.
/ From the News and Courier.

trolier OF the currency develops some
remarkable facts with regard to our
national banks; the more remarkable
and the more worthy of attention be-
cause Of the bitter warfare being waged
against the very existence Of the ma
tional banking system by the Farmers
Alliance. It shows, for instance, that
during the twelve months covered by
this report, ending October 81, 1890, no
less than three hundred and seven
new national banks have organized,
with capital of S96, ,250,000. This is
the largest increase within any one
year since 1865, when the old banks
were changing into natio 1al banks.
BANKS INCREASE MOST IN ALLIANCE
STATES.
A very remarkable point in this is
that the largest increase in any one
State was in Texas, which, next to
Kansas, may be regarded as the lead
ing Alliance State, and which State is
the home of Macune and Terrill, two
of the most bitter agitators against the
banks. In that State alone the in
crease was sixty-three, with a capital
of S., $4,000. Next in order of increa> g
come Pennsylvania with twenty-seven
new banks, and a capital of $2,375, 900.
Then comes Missouri, also leading
Alliance State, with twenty new banks
and a capital of 81, 100000. Then comes
Nebraska, another strong Alliance
State, with nineteen banks and capi-
tai Of 81, ,S25, 900. So, then, the greatest
increase may be said to be in strong AL
lance States. This certainly does not
seem to indicate that capitalists in
those States expected the early success
of the Alliance in abolishing the entire
national bank syste:.. On the con-
trary, so large an increase all over the
country would seem clearly to indicate
that the system has not only main
tanned, but is increasing, its hold on
the business interests Of the country.
ENORMOUS INCREASE OF DEPOSITS.
A further evidence Of the Increasing
popular confidence in the national
bank system is to be found in the enor-
NOUS increase in individual deposits.
On January l, 1866, the aggregate capi-
tai of all national banks amounted to
S403, ,357 1886, and their individual de-
posts to $520,212, 235. On October 2,
1890, the aggregate capital had in
creased to $3.50, A., ,235 and the individ-
ual deposits to 81, ,564, S45,275 That is,
during this period of nearly twenty-five
years the capital stock Of the banks had
increased about 81 per cent, while the
Individual deposits had increased over
200 per cent. These deposits not only
show the increasing popular confidence
in the national banks, but they are also
Of prime importance to the business of
the banks, as they are now their prin-
eipal source Of proft-bank circulation
in most localities being no longer profit
able on account Of the high premiums
on United States bonds.
SMALL NUMBER OF BANKS IN THE
SOUTH.
Another point that it may be we'll for
US of the South to note, though it may
not be altogether agreeable, is the dis
proportionate amount Of banking facili-
ties in the South, compared with other
sections of the country. South Caro-
lima, for instance, has only sixteen
national. banks in active operation,
with a capital Of $1,79s,000; while
Kansas, with almost the same popula-
ton in 1880, has one hundred ard
afty-eight banks, with a capital of $l4,-
2t9,o00. Mississippi has only twelve
banks, with capital of 81, IA, 900, while |
New Jersey, with about the same pop
ulation, has ninety five banks, with
capital of $l4,30S, 900. Georgia, the
Empire State of the South, has only
thifty-one banks, with & capital eff &c.. |
$4,000 while Iowa has one hundred and
forty-one banks, with a capital of SILL
$4,000. And similar disproportions
we would find all the way through.
These are unpleasant facts, perhaps,
9at it is better to know them.
Great SAVING 10 THE PEOPLE.
Sc report shows that the total num-
national banks in actual opera
NFa he slst Of October, 1890, was
ion SSr<s hek largest number that
,,5S7, bsiHHH nystime in the country.
has existed a ,ek Of these banks |
rhe capital sSSs285, and their
amounts to s65secure circulation
bonds deposited to&eold slo5, 5,9Os, $50
to $40, 10000. They h; legal tender
in specie, ssp,6O4,73l ional bank
notes, sls,492,3s2 In natSs States
notes and S6,l65,0Oo in CnlteSre-
certificates of deposit. A taouiateossI
Yort shows that drafts were drawn ouiSE
inc the year by s,s29 banks amounting
TO sl1,55o, sos, ,252 at an average cost Oh
q cents per sl3Q, which IS auouS Al, o n.o QUE te
twelfth of l per cent, or ss'ols'-00 'o1
W. ant;re amount charged for transact
mo th;s enormous business: ~ lne
sserage rate prevailing in 1883 unoer
the old system Of State banks OF per
cont the cost to the people in exchange
oInna on this amount would have been
sll5,5os, ,9s2. Thus we have a saving
n the single item of exchange OF over
sax ooo 900 due to our better banking
system. And yet there are those WHO
advocate returning to the old system OF