The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1897-05-25
RANKS AND BIG DEPOSITS.
Sunday mornings News and Observer
or+o;nad an editorial showing that the

i
Raleigh hanks had the implicit confidence
| OF the people, as evidenced 10y the lact
that their aggregate deposits were nearly
y million and Il half dollars While con-
graduating the city upon having banks
SURPASSED nowhere in safe and sound
mana cement. we said that the size OF
The dcposts did not indicate prosper
ity. rs might he inferred on first biuSh'
but showed that the people deposited
their savings in the banks without inter
est instead of lending il to their neigh
bors or investing it in manufacturing
establishments. because they lacked con-
6dence in the future. \ good banker
friend. who prefers to withhold his name,
sends the following criticism upon the
editorial, which we are glad to print:
ITO the Editor: In your editorial yes
terday referring pleasantly to the Raj
eigh banks and to their large deposits,
you say if the times were good much OIL
this money now deposited i'll the banks
would be in circulation, building facto-
ries, developing resources, and bringing
return to it's possessors' and that the de-
positors carry their money to the BANK
rather than lend it out to nelghDors,
VINO want to borrow. or put 1t III enterprl-
ses that would give employment to many.
You must have failed to observe that
thcre were two sides to the bank state
ments. or YOU would not have overlooked
the fact that sall but about twenty per
cent of those deposits We're in the hands
Of the 'neighbors' actively at work. build
ing factories, developing resources, etc,
Or to make it plain, of the 81 ,46o,OoO OF
deposits. 81, 1920 had been loaned to
the mills and individuals of the commu-
nifty. This 20 per cent. together with tnelf
easily convertible securities was neces-
Sary. in the judgement OF prudent bank-
ers as a safe reserve. Would II not De
wiser to Encourage our people 10 deposit
their small holdings. so that by the aecu-
mutation of many small amounts the
banks may be able, as they are always
glad to do. to aid those who are trying
to build up their country by legitimate
business enterprises?
You seem to have an erroneous notion
that the deposits in the banks belong to
the rich few. Such is not the case. Ihey
are built up by the small savings of the
many. who by their industry and econ
omy. are trying to provide for rainy day.
These people are occupied with their du-
ties on the farm. in the shops, in the stores
and offices. They wisely recognize the
fact that lending money Is out of their
line of business; that they cannot safely
and ;dvantageously put out Their money
in small amounts to their nelghh0Ts, and
yet command the cash whenever wanted.
They realize that if they keep it III their
own possession, the circulation of the
country is contracted TO that extent, and
SO they adopt the wise course of deposit
ing in some fe institution. Thus their
enterprising neighbors are given an OPP
portunity to borrow and use 1.-THE bus
mess interests of, the country are not in
terferred with and Mt the same time
our thrifty friends have not. deprived
themselves Of the privilege of immedl-
ate use ofEtheir funds. 1
<E 1T is this system of collecting from
those who ,haSeAaad distributing to those
who. have mot or who are enterprlsing
enough To find active employment for
more than their own fllnds-that makes
the bank n necessity 10 the business of
the country. and if those who mould pub
lie opinion would recognize this fact, and
deal with it from practical business, in
stead OF a political standpoint, we would
hear no more abnse of banks, and see no
more effort TO create a prejudice against
a class of our people who are trying to
make an honest living for themselves and
at the same time be OF some service TO
their communities"
The true bank is to the community
what the heart is to the body-and such
are the Raleigh banks. This paper re-
joiccs in their growth and prosperity,
respects and honors their officers, and de-
posts in them all the money it can get
and borrows all they will lend.
While it is true that the money deposit
ed in the banks is loaned to the people,
and thus is an essential basis of CONNER
cial activity and prosperity, we see no
reason to change cur opinions formerly ex-
pressed.