Virginia citizen. (Irvington, Va.) 1891-1921, 1900-05-11

Act places prohibatory limit on the
amount of funds that a State Bank
can De entrusted with?
The Comptroller of the Currency
has issued call for a report of the
condition of all National Banks at
the close of business on Thursday,
April 26th.
State banks not only pay "a heavy
internal revenue tax but section 3235
of Revenue Statutes prescribes that
Sin TIE case of a bank with branches, a
special tax is required of each branch,
the special tax being due as to each
place where the business of banking.
as defued by the statute, is carried
on."
One OF the features of safety to
depositors in a National Bank lies in
the fact that government inspectors
come frequently and unawares aud if
the business is not conducted prop
erly or the bank is found to be going
behind, the government takes charge,
it goes into liquidation. and the de-
positors are returned their money.
Report of The Lancaster National
Bank, for the first week of its exis-
tence (ending April 26th), will be
found in another column. This re-
port is made and published in ac-
cordance with instructions from the
Comptroller of the Currency, and
makes very flattering showing for
the youthful enterprise. Three
weeks have now passed since it began
business and its present business is
more than three times that of the
first week:
Mr. Chas. w. Robinson, u. S.
Bank Examiner, was in Irvington
last Friday examining the affairs of
The Lancaster National Bank. To a
CITIZEN representative he stated that
the condition of the bank was ex-
cellent, that its managers showed that
they were men experienced In bank
ing affairs, and that The Lancaster
National was doing phenomeually
well and equal to any new bank in "A
rural section that had come within
his knowledge.
Two erroneous impressions are
sought to be made in respect to Ma
tional Banks. First, that they can
not loan money on real estate. While
it is true that National Bank cam
not directly take real estate as secu-
rty, they are permitted to take per-
sonal endorsements secured by real
estate, the lien to inure to the benefit
of the bank. The second is that they
cannot make loans for periods exceed
ing four months. There is no such
limit in the National Bank Act. The
law requires that they shall make
short loans, for its own and its depos-
itors' protection, but notes for six
months or longer can be taken. When
they expire it is the custom, il de-
sired, to extend them and to do this
indefinitely.
Speaking of the location of banks
in Lancaster county the Chesapeake
IGtchm0R last week said: ave can
hardly realize the magnitude of the
good fortune that has befallen this
county. 1t means the introduction
of business principles into the various
business pursuits of our people. 1t
means that $4,000 will be on hand
to meet the various demands for
money, ever present in progressive
aud wide-awake section. IL means
that habits of saving money will DO
gradually cultivated, and that our
working class, instead of keeping
their wages in their pockets, will pa {
a part at least of their earnings i'm
the bank for a rainy day. lie means
that merchants in good standing will
be enabled for small consideration
to get the cash to pay of their bills
cS merchandise and thereby save
hundreds of dollars in discounts. Ii
means thst the surplus cash of our
home people will be kept at home
instead of being used 10y the banks
in the cities, where it is Eoy on de-
post. 1t means that the honest and
hard yorking farmer can get the
means to carry OF smoothly the har-
vesting and saSing of his crops. 1t
means that $l50, 0VC in hard cold
cash will be awaiting a cal! for use,
and wall be readily furnished to those
who can use it advantageously and
give the proper security. 1t means
to the outside world that Underwater
Virginia is fast marching up to the
front in commercial. manufacturing
and agricultural pursuits, and it
means that the footprints of enter
prising strangers will soon be on our
shores to Investigate our advantages,
both I'm land and wsterv