Oxford eagle. (Oxford, Lafayette Co., Miss.) 1876-current, 1902-05-22

from the most riEid .erutiny, witch should
br protection 10 them agslnst improperly
managed competitive corporations Rank
sNa ~ miners arr supposed 10 be men u sound
business principles aud Of rOOd discretion
aud would not he psl mittetl. " - disposed,
10 dirulge the interuaf business cf hanks er-
opt IN 2 legal way aud in the discharge
y an official duty. W. hazard nothing by
the assertion that today there are mauv
banks Conducted in gToSs disregard of ~nnui
naukinz principles. and thereby constantly
lf~pardlEtuZ the safety and PROFITS - such
institutiouS-im impetiling the Interests -
Sharrh"liers anI dcpositors such banks
arr. distractions and an Injury 90 those con.
ducisd on rigid and innexlbie principles
and subject the latter TO unfair and unjust
Cumfs.t.. son.
In answer to the second question. Il
seems 70 - the prevailing rule with thesr
states having the most com rrhrnsive and
perhapS hs-St. laws on the subject TO -
quirr not less than four ofnciai statements
annually. which are published. and one re
Fuired annual examination. with the right
OF inspection. - often desired by a hank
sxahiiner. The examiner l. required 10
hav" all statements conform TO a uniform
rule 10 Sc that certain percentage OF the
assets b. at al times available. fnat over
aratts he altogether prohibited. except on
ihhns,ihteiy available collateral. that nu
loan b. allowed as an asset which i more
than six months past due. that Onlv Ger
tain percentage cf capital and surplus Dc
loaned TO an individual or nrtu. that no
sank be allowed 20 borrow. eitIes by re
ani one-half times it, capital: that officers
and directors be prohibited from overcheck
inG. and that the former he prohibited FROM
borrnwing Of their respective banks
These rules or reauirpueurs could not
be objectionable. and should I think with
penalties for enforcement be about the
limit of supervision
In answer to the third question.
very forctble argument IN favor of the
proposition T. that all Of us who have bank
li.S sNterienrr can testify TO the fact that
soNernement Inspection does create con
nf"nes. Tor who il there among u.s. when
haNthS culicction 20 send To a remote city.
ont OF the usual cuur~e. does not turn 10 A
bank DIRECTORY ana select the name ~ some
national hank. and why7 Not because
NATIONAL bank i known 10 L.. better but
rnther because government Inspection IN
sptrts greater confidence Again. why =
" that ont of more than iet banks In Mis-
sis~ipTi all have one or more national hans
correspondents. while only twenty four
have each a state bank cnrre- pousieuts Mhy
= ~ as a rule there are few exception a.
that NATIONAL banks have larger depo<ts.
and reteive more items FOR coliecfion3 The
answer J. Obvious. because OF eunsdeure
created by official hank examinations. xvi
dentiy the argument T. convincing. aud W..
are committed by our own acts 10 not only
STATE bank SUPERVISION. but TO official exam
inatinn a. we'll; aud those OF us Who obiert
evidently 10 from n selfish motive or
Possibly through a desire to confinu. the
practice of uuhuSineS~itke methods. A. state
hank supervision and state hank examiul-
tl2n world assist; rather than interfere.
With legitimate banking transactio IONS, ~
Pr"vcniln-. a. far A. possible. unbusiness-
IKE methods and other abuses
III u were generally known that each os
9ur states had good and wholesome. bank
ing laws. and enforced them. under th.
>tugt supervision Of bank examiner Il j.
Possible that our state hanks would anil
perhaps rishtfully should. excel national
banks In deposits. as well as IN general bus
mess such laws would inspire greater
conhdenee. and bring deposits. aud depo..
Its swell profits.
In conclusion. we have a good Insurance
law' why not 90 one step further in prog
res and ask for a conservative. vet eject
I've lanking lswT II the banks will faks
the Initiative by drafting a proper law
they ean avoid unwise and perhaps danger
ous legis slatinn- They eau put into opera
tion Law devised out Of the Wisdom. *.
perience. honesty and patriotism of tn.
bankers; and while the ignorant NAV sns-
pect their motives. we know tn. law world
De good. Tor the very existence and prosper
ltv " the we'll managed ..1nk i founded on
honesty and patriotism