The times. [volume] (Richmond, Va.) 1890-1903, 1900-04-29
STRONG PLEA
FOR STATE BANKS.
Letter to Southern rinanciers Drafted
by Richmoaders.
THE FIGHT IN The COURTS
To Employ Eminent Counsel 20 Assist
Mr.. Royal. the Leading coun-
sci for the Advocates OF the
Old System.

The following letter appealing to the
Bankers throughout the South to give
their assistance to the movement looking
10 the re-estahlishment of the State Bank
system explains itself:
Richmond, Va. April Is. 1909.
To the President and Directors OF the
Several State Banks Throughout the
South:
Dear sirs.-An effort to test the con-
ststutionality of The act of Congress i'm
posing tax of 10 per cent on the issues
or State banks was iaaugurated last fail
by the employment OF Mr.. w IL. Royaii,
whose minimum fee was secured mainly
through contributions from bankers ana
merchants of this city. Mr.. Royal mas
written the committee under date OF
April 10th as follows:
MIR, RoYALLS LETTER.
rRichnond, Va. April 10. 1900.
-R- A Lancaster. Esq, Chairman:
Dear Sir-In The matter OF, the pro-
posed suit 10 test the constitutionality
of the act OF Congress prohibiting the
Issue of notes by State banks, / beg 10
report that the time was too short after
the movement was undertaken 10 get. q
test case upon the docket of The Supreme
Court of the United States at its present
all in shape now. however. for having
the case upon the docket of that court
at its next term beginning in October,
and feel very great confidence that we
Will get il heard and decided before the
FIRST or next January
Meantime, howeyN., 1 beg leave to cali
the attention of yourself and your COM
1nittee TO the fact that there are consid-
cradle expenses attending this movement.
which have 50 far fallen upon me. /
have just had 10 pay $50 in one matter,
and I have an expenditure of at least
$3.50 more directly confronting me. Would
not the banks and other parties interest
ed in having this most important matter
brought 10 an issue respond 10 an appeal
from you Tor aid in the cause?
yours truly. w Il. RoYALL.''
The committee has decided 10 make an
eppeaI to You for a minimum contribu-
ton OF E2o each to meet further expenses.
including the employment Of other emf
nent counsel in this matter of such vital
Importance 10 all the people of the South,
ana especially the agricultural ccmmu-
mites where a system Of barter is car
.-ied on because of the absence of banks
TO accommodate those known in the COM
lnunity as worthy of credit, but who are
unknown IN the distant cities where State
banks exist only because of the profit TO
be derived from large deposits. The
1rO4t from circulation Is absolutely lSctS-z
sary TO the establishment OF banks in
rural districts. and under the national
bank act. even as amended recently, 1t
cannot be expected that banks will be
established. for the reason that they
cannot be made TO pay. What would De
the result with a national bank with $780,
Ooe capital?
That sum would pay for, say, s4S,-
osa United States 2 per cent.
bonds. the interest on which would
be .-----.- a----...-.----- SIv
$1,000 OF currency, less per cent
for redemption, say, $4,000 loaned
at 6 per cent. .................-... 200
Assuming that the deposits would
equal the capital say, s59,Ge0, less
$500 for reserve, Si2.50o at per
cent. ...-.------ --..-.--..........-.- 2'7'0
s6alo
U. 5. tax of l. per cent. on
$4,000 circulation $40
Salaries and rent .--........-.. 900
State tax ----..--..-.... lse
$3.50