The Canton times., 1902-05-23


and that properly managed and prosperous
institulIon5 should have nothing 70 rear
from the most rigid scrutiny, which should
be a protection to them against improperly
managed competitive corporations. Bank
examiners are supposed to be men OF sound
business principles and of good discretion,
ana would not be permitted, II SO disposed,
to divulge the internal business Of banks ex-
cept In a legal way and in the discharge
Of an official duty. We hazard nothing by
the assertion that today there are. many
banking principles, and thereby constantly
jeopardizing the safety and profits OF such
Institutions -impeliling the interests OF
shareholders and depositors. Such banks
are distractions and an injury to those con-
Quoted on rigid and intexible. principles,
and subject the latter to unfair and unjust
compe,i,Ion.
IN answer to the second question, it
seems to be the prevailing rule with those
states having the most com rehenslye ana,
perhaps best, laws on the subject, to re-
quire not less than four official statements
annually, which are published, ana one re-
quired annual examination, with the right
OF inspection, as often as desired by a bank
examiner. The examiner is required 10
have all statements conform to a uniform
rule; 10 see that certain percentage OF the
assets be at all times available; that over
drafts lie altogether prohibited, except On
Immediately available colateral; that no
loan be allowed as an asset which Is mora
than six months past due; that only cer-
tain percentage or capital and surplus be
loaned to an individual or firm; that no
bank ne allowed to borrow, eitheJ by re-
discount, note or otherwise, more than one
and one-haf times its capital; that officers
and directors be prohibited from overcheck-
ing, and that the former be prohibited from
borrowing of their respective banks.
These rules or requirements could not
be Objectionable, and SHOULD, think, with
penalties for enforcement, be about the
limit Of supervision.
I'm answer to the third question:
the
proposition Is that all of us who have bank
ing experience can testify to the fact that
goyernement inspection does create con-
tidence, for who is there among us, when
having a collection to send to a remote city,
out of the usual course, does not turn to
bank DIRECTORY anu select the name of some
national bank, and why! Not because
national bank is known to be better. but
rather because government Inspection N
spires greater confidence. Again, why Is
it tnat out of more than 124 banks in Mis-
correspondents while only twenty four
have each a state bank correspondent? Why
is it, as a rule There are a few exceptionsD,
tnat national banks have larger deposits
and receive more items for collection? The
answer is obvious because of confidence
created by official bank examinations. Eyi-
IDENTIFY the argument Is convincing, and we
are committed by our own acts to not only
state bank Supervision, but to official exani-
! ination as WE'LL and those of us who object
| evidently do so from a selfish motive, or
| possibly through a desire to continue the
! practice of unbusinesslike methods, as state
| bank supervision and state bank examina-
tion would assist rather than interfere,
with legitimate banking transactions, ~
preventing, as far as possible, unbusinesS-
| like methods and other abuses.
IF it were generally known that each OF
our states had good and wholesome bank
| ing laws, and enforced them, under ths
strict supervision of bank examiners, 1t is
possible that our state banks would and
perhaps rightfully should. excel national
banks in deposits as well as in general bus
mess; Such laws would inspire create
confidence, and bring deposits, ana pepo
| it's swell profits.
s'In conclusion, we have a good insura
law; why not go one step further In pl
i've, banking law? If the banks will ia
the initiative by drafting a proper la,
they can avoid unwise and perhaps danger
Gus legislation. They can put into opera
tion a law devised out Of the wisdom, ex-
! perience. honesty and patriotism OF the
bankers: and while the Ignorant NAV sus-
pect their motives we know the law would
be good, for the very existence and prosper
Ily Of the well-manaeed .ank is founded on
honesty and patriotism
Attorney-General McClurg, Judge
Acknowledgement, has prepared a
charter for incorporating the Sons Of
Veterans of Mississippi, in which twen-
ty-five Sons are named as ircropora-
tors, though all sons of the Mississippi
division are included as charter mem
bers. Gen. McClurg sent out circu-
lar letter last week to the charter
members, which is as follows:
jackson, May Is.
Dear Sir-By request of the Missis-
sippi division of the Sons of Veterans,
l have prepared a charter of incorpora-
tion of said division tor the purpose
of receiving, by organized authority,
contributions for the purchase of Beau
voir and to receive 4 deed thereto.
Your name appears as one of the char
ter members. Tuesday, June 3, the
anniversary of Jefferson Davis birth
day. has been fixed as the day for the
approval of the charter by the Sons
and to organize Hereunder by elect
ing a president, secretary and treasu-
rer, and formulating plans for the
general management If the corpora
tion in the interest of the Mississippi
division. Therefore you are respect
fully requested to meet with the in
corporators at 10 a. m in the Senate
chamber at Jackson, on June prox.,
1Or the purpose dDoNe Stdtou, anu 49,
presence is respectfully urged. Per-
haps the most important matter, next
to the organization itself, will be to
provide for permanent recognition OF
the Daughters. Consensus of opinion
now seems to be that the Sons shall go
ahead. buy the property, pay for 1t
and see that they get good title. and
then fraternally turn it over to the
Daughters to care for and manage.
| 49,, :. -. ond otbore nertinent IN