The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1898-12-05

one hundredths OF per cent greater than In
Z 257 reserve cities. sevenly-four one-huhlreaths
Of | per cent greater than In ST. Louis uVNr
twice ms great as Ia Chleago. ana nea " iouV
times as great as IN tn City of New York
This provision as II sttads NJ nrtse1t son
etitutes itu incentive to the mailing 81 lpEni
the larger IA proportion to the toiSl assets
of banks in smaller cominuniic,, wh.ie' a.
a rule, large loans which are safe ar, We
business centeis OF the country, where o2m.
mercial conditions create certalh acLi. .,.
both from banks and borrowsrs for large anu
safe tans. its effect Is the reverse to sieh an
extent rs To be injurious.
Tie then says. , 49,.
vision by the ctilcOls of so many banks ~
terferes with the proper supervision OF ny
banks by the COMPTROLLER. and tenis TO Great
iniiTercnco u the other restrictions OF the
National banking law.
The failure of the present law 70 provide
,hc poTer to app s,Se P egss psh en-
tarasses tho comptroller IL erdeaVorlnA 10
check tendencies toward recklessness ~ ioal-
ing, which point to the ultimate ruin oil
banking Institution.
when properly uttered. should allow inc pnns !,
Of lcreer communities TO have more nearly
the privilege Of loantng a gyen per een ,, o,
thor total assets to one individual, wni ,,h
the present provision; to INC banks OF .s .ns
smnlie, communities. From this privilege they
are now dcbarred by law.
Tho desired results can be obtained, III our
Judgment by adding, after the words, IN SEC.
tinn 5g00. shall ut no time exceed one-tenth
pat OF the amount Of the eaptaai s ,n q, o.
such association hc-uaiiy pniu ~ WIG i''
1 Loving words. -,
"Provided That the restriction, Of this
srt lion as to the amount OF total lhDiiiues 10
any association, OF any person, or OF any com ON
! pai,v, corporation W firm for money Dor
rowed. shall not, apply where laan ~ s,p e1
cess Of oae-tonth part CT the. capital stock
shall be less than per cent OF the total as.
sets OF said bank at the time OF making sara
loan. said loan shall be az all times pro,
tected by collateral security equal TO or
etenter in value than the excess n INC
( ar-aunt OF said loan over one-tenth OF the
/ 4 strict and personal penalty enforceabi.
! by tho comptroller should then be provided
/ Officers of banks, TO enable the comptroller
! ia snecessfully enforce general and strict
/ compliance with its terms.
Tin strrcsted amendment VIII make SECTION
( 500 lust and equitable In It's relation 10 bi
I National banks. and 10 all communities OF
I OF. country, large and email, when IL IL hot
II would not lessen the amount which the
smaller banks can now loan IN compilhu.t
with the section as IL stands Mt present. ~
tbo game time It would not allow the larger
banks to loan TO any one ipdividua! or col
poration more than 10 per sent OF their e.
pltaI unless such loan, in addition TO pens
seSured Tor the excess would still amount
10 n less per cent o; their total assets than
The per cent OF total asset when nc s"iai'e
banks can now loan unuer th' sD'e'A 90 -
section 5sGJ thus amended will not Interfere,
rs at present, Win INC 'hut "a -
The larger communities 10 meet the lesillmhtf
aeGums'ieItS ygi vi enable the Comptroller, By
ia enforcement. to prevent an undue coneen,
tration of loans ana conserve e"e' ss"e'"'
a'sfp nnr 'he seoton thus amended the capital
1 OF a bank will be protected. inasmueh as no
loan in excess OF the ~ per r rnm coiiatsrai
then be MADE except upon pioi''
The penaity clause will enable the coup.
troller not only TO limit me 1 hmn so ns' va
force ths sscnrlms o. nrsscnts Series OF
tables showing me genera ehest % sus q, ,,s
amendment upon me business oi p"h'' ~ 80
relation to eAlstihg loans,
rr,ao- ,bo head of insolyent banks tho
-. s,...., a.. ca.au h,s ,,,,,,s n,
comptroller oScushss ~ aS-"' ne h
May 8, 1888. reversing the former POSITION q