The morning news., 1894-11-21
a MILDER SORT OF NUISANCE.
that Is What a Business Man Calls the
Bank Stock Transfer Riil

d
Editor Morning News: I regard if ss
very unfortunate that the unconditional
repeal OF the bank stock transfer bin
was not asked for It is understood that
Ihe measure now before the legislature
uId"n by an eminent Savannah LAWYER
ana bank president, is in the nature of a
compromises sort Of milder forrn of q
nuisance. 1t is no doubt the res1lt of -.
conclusion that an unconditional repeal
could not be secured. Like most coroI,r,-
misses II Is only d palation and nor a COM
pIete rellet. 1t viii not help the cause. il
VIII prove less expensive but tn = bus-
iiIess man OF TO an investor none the less
Troublesome and Objectionable. It is Ger
am 10 uhIaFOrably affect Esnk stock as
an investment, lettering capitalists from
SUBSCRIBING to new enterprises of that
character. OF course, if we do not need
any more banks. this view of the case will
not De urged, and the banks now in exis-
lence VIII have an open field. 1t might as
wen De argued that, having their capital
dlfeady subscribed, that the popularity
or unpopularity OF its stock would make
no dlnerence to a corporation, but as
individuals, the members of that corpora-
tloh desire to be able to sell their
investment when it became necessary, and
the general buying public do not look
with favor upon any investment ham
pered with conditions. Besides there is
q suggestion of future trouble, a species
of menace, in the necessity that exists
10 record the transfer. 1t is a reminder
that there is an individual responsibility
attached TO the ownership of this property
ana the practical effect will be the avoid
ance of that class of securities. The
present owners of bank stocks will find
lower market when they desire to
sell, and money lenders will demand
larger margins. AS the business of the
city grows and requires increased bank
ing capital greater difficulties will be
experienced in obtaining subscriptions
borrowers having good credit away from
home Will get their money elsewhere, but
the smaller borrowers of only local repu-
tation must resort to the shaving shops
and curb-stOne bankers. But where is
there necessity for any law of this
kind? Whom does it protect? A bank s
creditors, other than its stockholders, are
of two classes, those who lend it money
and its depositors. The first class need
no such legislation for their protection.
Like all money lenders, they are able
to look out for themselves, and know
pretty we'll to whom to lend.
The protection then, is intended to be
to the depositors. The average depositor
selects the bank with which he does busi-
ness, either on account of being able to
secure the accommodation he needs, or
because of personal connections, busi-
ness or otherwise with some of it's Off
GERS or employees. A depositor is not in
tiuenced because either Smith, Brown or
Jones are stockholders, unless Smith,
Brown on Jones are in the directory.
Those who become the creditors of a bank
look TO the officers and directors and sec
ondarily to the state inspector for their
safety. They scrutinize the published state
ments, and rely upon the inspector to
verify them as to the correctness of the
classification of notes discounted, whether
good, bad or doubtful, and to his periodi-
cal examination of the mode of business
practiced. Beyond the names of the stock
| holders who are made conspicuous by be.
ing directors, the public do not know who
own the stock of the banks, and for q
stockholder, in order to sell his stock, tC
be compelled to secure the transfer in the
clerks office, only advertises the fact thai
he has been stockholder, which is neith
er interesting or important when that re
| lationship has ceased to exist. Therefore
1t is that the effort should be made to re
peal the old law entirely and let the mat
ter then rest, Business is transmitted by
the other course and no one is benefited.
Merchant.