Rocky Ford enterprise., 1900-03-08
SNAP FOR BANKERS.
FINANCIAL BILL A GREAT HELP.
II WIN B~ rossibi- to start = National
Hank for S:.s5O-M Many State Hanks
VIII Change at Ohce.

New York. March S.-Advlces -
ccived by local banking Interests to-
day from small towns and villages
throughout the United States Indicate
thar state banks In all sections OF the
country are preparing to take out char
tiers under the national system as soon
as the currency bill becomes n law.
New York banks ARE already making
efforts to secure tn. business OF thcs"
INSTITUTIONS. one bank In this city alone
receiving to-day more than thirty In.
Iuirics upon til. subject. One man
from western town told n bank oiii.cr
that he expected to starr eight banks
with u capital OF S..j.OD each. Re-
ports OF similar preparations In other
sections of the country le'l Ia u prc'lic-
tion by an officer NJ onr OF the best
known banks that fully 2.HS national
charters would h. applied for after ea-
listing restrictions were modified.
Thr Evening Post says:
''it was estimated to-day that any
one with 5000 capital could start u
national hank under th. new system.
All that Ii required II S2,.bD In iwo
per cent. government bonds. which
could bc secured at prevailing rates for
capital OF the hank. could bc sent To
Washington ani circulation for ih. full
amount OF tn. capital Immediately
taken out. The organizer of the bank.
then. hns only <o.1.D tied up In the cn.
i.rpris.. but could take deposits In III.
regular way. Whether I'll. system can
bc properly safc.suari-d under such
requirements il not known. hut III.
local bankers arr watching til. expert
m.nt with great Interest ani more or
less concern.
''Such extension Of the national sys.
ten IL expected to yield large profits
10 national hanks of this city, since
state hanks Mt int-rior points k--plns
their balances with state banks or trus;
companies in this city will have To
transfer their accounts to national
banks III they wish them counted ns
rcs-rs-i n soon n the new charters
arr taken out. This. II u thought.
may result Ia u serious loss for some
OF the inrE- state bink-. sinc- such ne
counts In I'll. aggregate represent
large roium- Of business.
~ tsanE president cit,Si the difficult
ties OF the present system ns the r-l.on
why New York banks. with their -nor.
nous volume Of business. found IL -S.
I-,,ii-nt To take cut only about Sis 90.
co In corcuiatIon. \ hank paying si.p
or SGD for q four. per -rnt. bond on
which only ninety i-'r cent. of ciF-uia.
iian could H. issuc.i would hnv" to tie
up SD or $50 on zach tiuS 80 Invested.
besides paying double the tax called
for In the proposed law. on iha; basis
the transaction would l., decidedly mn.
profitable. TO say nothing of the -S.
iscns~s incident &. printing. etc. which
would still further cut into the Income.
This il why local hanks. carrying the
greatest number Of ou,'Sf.,.wn nc.
cuunts and shipping millions OF cur.
rrncy each year TO western. eastern
and southern correspondents when
crop.movinE demands ct, down inter.
Tor money supplies. took out little or u"
circulation. although IL might have mH.
t-riniiy projected their reserves during
periods OF money strine-ncy.
''soin- Of the large state tanks of
this city have considered informally
the aiNisabiiity "f taking out national
charters. ani II is not Improbable thn;
ccrtAin changes of this sort may H.
made later "u. Hut the provision Of
the banking law in this state allowing
state hanks .. establish branches IN
this city may ictrr s-mr institutions
from making the change