Woodville Republican. (Woodville, Miss.) 185?-current, 1902-05-24
ana sub,ec. I'D Iattsr . untair and uniua.

oua buD1ect tne iAtbat " uAAAh anu onJubb
in answer to the second question, It
seems to be the prevailing rule with those
states having the most COMPREHENSIVE and,
perhaps. best, laws on the subject, to re-
Quire not less than four official staterents
annually, which are published, and one re-
quired annual examination, with the right
Of inspection, as often as desired By bank
examiner. The examiner Is required 70
have all statements conform to a uniform
rule; TO see that certain percentage Of the
assets be at all times ayailablei tnat over
drafts be altogether prohibited, except on
Immediately available collaterali that no
loan be allowed as an asset which Is more
than six months past duel that only a GER
tain percentage Of capital and surplus be
loaned to an individual or hrmi that no
bank be allowed to borrow, eitheD by 70.
discount, note or otherwise more than one
and one-half times its capital; that officers
and directors be prohibited from overeheck-
ing and that the former be prohibited FROM
borrowing Of their respective banks.
"These rules or requirements could not
be objectionable, and snouid, think, with
penalties for enforcement, be about the
limit OF supervision.
I'm answer to the third question: A
verY fQrcible argument in favor Of the
proposition is that all Of Us who have bank
ine experience can testify to the fact that
governement inspection does create con-
adence, for who is there among us, when
having a collection to send to q remote city,
out Of the usual course, does not turn to a
bank DIRECTORY ana select the name Of some
national bank, and why2 Not because
national bank Is known to be better, but
rather because government inspection m
spires greater confidence. Again, why Is
It that out of more than ia banks In Mis-
slssippi all have one or more national bank
correspondents, while only twenty-fouF
have each state bank correspondence Why
Is It, as a rule there are few exceptionsl,
that national banks have larger deposits
and receive more Items for collectionl The
answer Is obvious, because Of confidence
created by official bank examinations. Evil
IDENTIFY the argument is convincing, and we
are committed by our own acts to not only
state bank supervision, but to official exam
ination as well; 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, by
preventing, as far as possible, unbusiness-
like methods and other abuses.
"If 1t were generally known that each Of
our states had good and wholesome bank.
Ing laws, and enforced them, under the
strict supervision of bank examiners, It 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 greater
CONFIDENCE, and bring deposits, and depoS-
its swell profits.
'In conclusion, we have q good insurance
law; why not go one step further in prog.
ress and ask for a conservative, yet effect.
I've, banking law? If the banks will take
the initiative by drafting a proper law,
they can avoid unwise and perhaps danger.
Gus legislation. They can put into opera.
tion law devised out Of the wisdom, ex-
perienee, honesty and patriotism OF the
bankers; and while the ignorant may sus.
pect their motives, we know the law would
be good for the very existence and prosper
lty Of the well-managed vank is founded on
honesty and patriotism"