The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1899-12-10

90 tbe hank. There seems TO be, IN some
directions, an opinion chat by the brace
Of government these institutions are %
tablished as privilege TO ceflain pe4eoH'
SO favored; hat they have no reA4 49,
sion TO be; that at best they are paiasItlo"l
plauts drawing lie and nourishmeht ION
Inc Industrial tree 10 which ihey are az
tached and 10 the well being OF whieh
they contribute nothing. II tAla Neto
true, no duty could be more llnIhe l'Hle
than 10 repeal all laws which give tAeln
extstence. and, by one aweeplnS pIoAio'-
tive net. forbid the exercise OF their Iullr-
ton. Whether 1t was wise foI the Rep-
eral government 10 legislate at an con.
corning them, II would DO useless now W
discuss. 1t is sufficient that thls mas ueeH
done. and by action, permlsslve IN Ger
toln particulars and prohibltiye IN others
there have been evolved some 8o0o Ma
tionaI banking institutions. Like other
agencies when time has developer 4 Eu
made operative IN the natural relations
OF men 10 each other, banks are NaIuhpie
+ for the service they perform ior the soGia
whole They are to be considered IN IN
light alone They ought neither TO pe
made recipients OF public favor or bounty
nor unduly constrained In those partieu,
lars where q proper liberty WIZ insure
to them O needful power for useful parVlee
| beg now TO point out some OF the gem
eral limitations and restrictions WhleI
congress has imposed IN this department
/ (National banks), and inquire as to the''
Justice, wisdom and adequacy.
1. AS TO conditions OF eapltanzaIlon,
The law requires q minimum capital OF
s5O 000 as a precedent TO organization I'M
der the National bank act While thii
would seem 10 be q fair and moderate
limit. II IS undoubtedly too large Tor tne
resources OF small communities, wher,
banking facilities are much needed, ane
liz Is suggested that for places OF popuIa'
ltion OF 1900 or less the minimum pc re-
duced to s25 600
2. The National bank act clearly recos.
nizes the note Issuing function as proper
one but 1t 10 plain that the o.isinai oon.
lditions and limitations Imposed nave, un'
der changing conditions. become suostan'
ast rrehib,tiye In their terms. This
ought 10 be restudied, and as large \
liberty given as may be consistent viii
safety In the exercise OF that usefui rune
ton. ,.,,,,1
g. Tho law prescribes percentages whicl
National banks shall carry In cash asalns,
their deposits and limits the amount O.
= risk which the bank shall take In loans
IA any one Individual. firm or corporation
The percentage OF cash reserves seems U
have Justified in practice the provision o
the law but the limitations on loans nav
been found to work with great Inequality
The recommendations OF the comptroiie
OF the currency on this point. to be foun'
in his report TO congress last year. meri
, careful consideration.
4. While limitations and restriction
I exist in several directions. no iimltauo
has ever been given as 10 the nltifna'
liability a bank may carry upon gave
amount OF capital. Upon this point u
bank with $4,000 capital stands Legal
: as free ss does the bank with se.Voov'
i eanitaI Cash reserves are defensio
N subiect Of Legislation. because they ane
= The Immediate solvency OF the bank II
n limitation OF liability compared with eAl