The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1900-07-21
BONDED WAREHOUSES.
And the Per Cent Interest Law in North
Carolina.

The banking journals of the country
are printing the annual address of
President Joseph G.. Brown. of the
Citizens National bank. of this city.
before the Bankers Convention in
Greensboro in June, and commenting
on it in most complimentary terms.
1t was an address OF a very high
order, timely and thoughtful. The
discussion of advances made by banks
to farmers is especially interesting.
Touching this subject and the adop-
ton of the per cent. interest law
Mr.. Brown said:
Much was said some months ago
about the inauguration of plans by
which the farmers could secure ad-
vances on their cotton and thus be en-
abled to hold it for higher prices. An
idea seemed to prevail even among
some intelligent people. that the banks
would not lend to the farmer. y
great mistake this. \ bank always
wants to lend its money. Its living de-
nends IN it's loans. There Isl no more
desirable customer than the substan-
tial farmer-and no better collateral
than the warehouse receipt for cot
ton. A bank would rather lend to ten
itv than to one individual $4,000 upon
security equally good, for thus it's
funds are better distributed and the
circle of its friends is enlarged. To
obtain loans on such security the in
fiuence of no organization or associa-
ton is needed. The banks seek just
such paper, and esteem the oppor-
tunity to handle it as favor to them
selves.
Let the farmers be assured then
that we want to accommodate them;
we want them to feel free to come 10
us. to advise with us, to bring us
their cotton and borrow our money,
and when their crop is sold and they
have surplus funds, then we would
have them feel just as free to deposit
with us, so that through our agency
other enterprises may get the bene-
fit of their thrift. This is the true
mission of the bank.
''Our great need is the establish
ment of bonded warehouses whose GER
/ tificates could be readily used as col
laterals. Unfortunately there is now
no statute in North Carolina under
which warehouses can be bonded. 1t
would be we'll for our Legislative COM
mittee to take this matter ND with
| our attorney. and have a bill prepared,
| to be submitted to the next General
Assembly. The passage of such an act
| would inllre principally TO the own
| ers of cotton and other understandable
| property. but would be of benefit TO
| all business. and is therefore of inter
| est 10 the banks.
THE last report CT the banks in this
| State show capital $5,609,272; surplus
and profits, $2,39S,732; deposits, 49,
| $50. 1914. and total resources, 9,346, 900.
| This is an excellent showing for North
| Carolina. and indicates that she is
| bravely rallving from her former i'm
| poverished condition. The passage of
| the per cent. law few years aga
was regarded by many as death
| blow to- the prosperity of our banks.
1t was, indeed, heroi1 Anatment, brt
a contrary result followed from tina
which many anticipated. Whether
due to this law or not, | cannot say
but certainly since its adoption more
| industrial enterprises have been in
augurated than ever before in our bis
| tory. These movements have caused
| generally activity in which the banks
| have shared. Deposits have beer lar
| ger. demand for money more active.
| and resulting therefrom, surplus aDt'
profits have been largely augmented.
| So. by the lower rate, the banks seem
| not to have suffered and the people
| have prospered. The law has born>
| most heavily upon the farmer, whose
| only security was his bond. Tie rate
| of taxation on solvent credits has
| been so high that the money hereto
fore loaned at the higher rate, upon
real estate mortgages, has been large
| w diverted into factories or non-taE-
| able bonds"