The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1901-12-27
TO HELP SMALL BANKS.
Congressman McCIearY Proposes an
Amendment.

Congressman McCleary Proposes an
| Amendment.
The Washington correspondent of
| the St Paul Pioneer Press. under date
of Dec. Gath, has the following of
move proposed by Congressman Nc
Cleary relating to national banks:
Representative McCleary has in
augurated an inquiry to ascertain the
opinion in well-informed circles as
to the advisability of an amendment
to the national bank law authorizing
small banks to advance loans on real
estate. The question of permitting
small banks to make loans on real es-
tate has been called to his attention
several times during the past few
years, and latterly he has received sew
eral letters on the subject from small
bankers in the Northwestern states.
Before offering an amendment to
the law carrying the idea into effect,
Mr.. McCleary decided to ascertain
the Judgment of those who are quail
fed to express an opinion on the sub
ject, and accordingly he has prepared
a circular letter. about six hundred
copies of which were sent out today to
persons in every state and territory in
the union. Mr.. McCleary asks whether
it is the judgment of those addressed
that it would be good public policy to
permit small banks to loan portion
of their resources on real estate Sc
curity. He also desires to learn, IL such
an amendment is approved, where the
line shall be drawn in authorizing
banks to make such loans whether it
shall be based on the size of the town
In which the bank is located, or
whether it shall be based on the capt.
tai; further, what percentage of the
banks resources shall be used in this
way.
This proposition has been advocated
heretofor, but the usual objection has
been made that it is not good policy to
have bank resources tied up In loans
that are not easily convertible. The
argument for the proposed amendment
is that the granting of such a privi-
lege to banks in rural communities
would be of great public utility.
Attention is also called to the fact
that Notwithstanding the prohibition
in the national bank law against the
loaning of bank funds on real estate
security that such practice is follow
ed by many banks. The amendment
is approved by many we'll known
bankers, and is said to have the in
dorsement of Charles w. Dawes, for
mer controller of the currency. Re-
preventative McCleary today took &C.
casion to endorse the selection .of
Henry c. Payne of Milwaukee as post
master general. and expressed the hope
that the report of the appointment of
Gov. Shaw to succeed Secretary Gage
of the treasury department is correct.
1.-The governor is in every way well
fitted for the position, said Mr.. Nc
Cleary. "and will prove worthy sue
cessor of Secretary Gage. He knows
men in all ranks of life and is thor
oughly familiar with national finance.
He is a man of the highest character
and of rare ability. he has the affec-
tionate regard of the northwest and
the confidence of the leading men of
the entire country. Since we cannot
keep Postmaster General Smith and
Secretary Gage longer in the positions
which they have so admirably filed,
the president is to be congratulated on
securing such exceptionally able men
as Henry G. Payne and Leslie M.
Shaw as their successors.
"Of course, we of the northwest
feel proud and grateful that the selec.
! tions were made from our section Of
: the country.
!, 'It will be noted in this connection
that while both Mr.. Payne and Gov
r Shaw are farseeing politicians in th'
: best sense of that term, both com,
v clearly within the presidents well
! known views as to civil service ap
p pointments and promotions Mr.. Payn
having had his fitting for the dutie
!, of postmaster general through loni
: and successful experience as postmaste
:, at Milwaukee. while Gov. Shaw wol
!. his spurs as one of the foremost figure
in that mightiest political contest eve
20 waged in this country, the great battl
of the standards in the presidentia
r campaign of 1896.