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.
I From the News and Courier.

The recent annual report of the comp
troller 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 a capital of s36, ,250,0o0. This is
the largest increase within any one
year since 1865, when the old banks
were changing into national 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 capital
of SIS, ESQ., 900. Next in order Of increase
come Pennsylvania with twenty-seven
new banks, and a capital of S2,375, 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, ,0G0. 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 system. 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-
FOL 1fo oil hor l-c faS 70
S403, 357 1886, and their individual de-
posts to $3.50, 0,212, ,235. On October 2,
1890, the aggregate capital had in
creased to $3.50, ,447,235 and the individ-
uai 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-
cipal 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 capital of $l,79S,O0O; while
Kansas, with almost the same popula-
ton in 1880, has one hundred ard
fifty-eight banks, with capital of $l4,-
100000. Mississippi has only twelve
banks, with a capital of 81, a, 900, while
New jersey, with about the same pop
ulation, has ninety five banks, with
capital of $l4,30S,O00. Georgia, the
Eulpire State Of the South, has only
thirty=one banks, with a capital eff ST.
9!5, 600 while Iowa has one hundred and
forty-one banks, with capital of SILL
$4,000. And similar disproportions
we would find all the way through.
These are unpleasant facts, perhaps,
but it is better to know them.
= GREAT SAVING TO THE PEOPLE.
The report shows that the total nuln=
ber of national banks in actual opera
ton on the 3lst of October, 1890, was
1857, being the largest number that
has existed at any time in the country.
The capital stock of these banks
amounts to $3.50, ,7S2, ,565, and their
bonds deposited to secure circulation
to $40, l9O,SO0. They hold sl05, ,90S, $50
in specie, SS0,604, 73l in legal tender
notes, SlS,492, ,392 in national bank
notes and S6,165,000 in United States
certificates of deposit. A tabulated re-
port shows that drafts were drawn dur
ing the year by 3,329 banks amounting
TO Sl1 $50, SOS, ,252 at an average cost of
s! cents per $lu6, which is about ones
twelfth of / per cent, or s9,SlS, 1858 for
the entire amount charged for transact
ing this enormous business. At the
average rate prevailing in 1889 under
the old system Of State banks Of per
cent. the cost to the people in exchange
alone on this amount would have been
Sll5,50S, ,9S2. Thus We have saving
in the single item Of exchange of over
Sl05,000,0 900 due to our better banking
system. And yet there are those who
advocate returning to the old system of
State banks, with high rates Of ex-
change and different values of currency