The Atlanta constitution. [volume] (Atlanta, Ga.) 1885-19??, 1903-07-13
NATIONAL BANKS IN
SMALL TOWNS.
South and West Are Well to the
Front in Organization Of Large
notwithstanding Stat1s-
tics by United States
Comptroller.

Washington. July 7.-(Special)-The rec
ords Of the Office Of the comptroller OF the
currency show that there has been re-
marAstle expansion OF the national BANK
ing svst.,n s,nce the passaee ot re act
Of March IA. 1900. which permits the or
ganization Of banks with a capital of not
less than $25. 900 In any place the popula-
ton Of which does not exceed three thou
sand inhabitants. Prior to that time the
minimum amount Of capital with when
national bank could be organized was
$50 900 in any place the population OF
which did not exceed six thousand fnhap-
itants. The effect of this high limitation
was to deprive many of the thriving
towns and small cities Of the country. es-
pccally in the south and west. OF nauonal
banking facilities. 1t was one OF the rea-
sons on which opposition to the natlonai
banking system in those sectlohS OIL the
country Was based.
The extent to which the facilities offered
by the act Of March IA. 1900 have been
avaled of, is shown by the TACT tnat
since that date there have been organ
lied in the United States total OF l,o9S
banks, of which but nineteen are located
in the eastern states, while the southern
states have 2S3, the middle vest Az, the
western states 343, the Pacific states 81,
and the islands of Hawaii and Porto RICO
g. If the comparison is limited to the
banks of less than $4,000 Individual capt.
tai. the class authorized by the act OF
March IA. 1900, the showing is still more
remarkable OF this class there were Dr.
eanized a total of 1041. OF this total but
five are located in TIE New England states
and but 141 in the eastern states. while
the southera states have 235, the middle
western states 1856, the western states Z9l,
and the Pacific states 80.
South Well to the Front.
The south and west, too have kept wei
to the front in the organization OF large
banks since March IA. 1900 OF those or
ganized with individual capital or $oo'Vo
or over, IA are in New England. lob IN the
eastern states. 14S in the southern states
157 in the middle west, 80 in the western
states and % In the Pacific states. The
Capitalization of the new banks organized
since March IA, 1900. amounts to 6'o4oooo'
of which S390o,o0j is in New England,
s25. 79) 900 in the eastern states. Sl9, o65, 800
In the southern states, 500, $4,000 In the
middle west, $l1 0S5 900 in the western
states and $500 900 in the Pacific states.
More new banks and more capital nave
been added 20 the national banking sEs-
tenn In the state Of Pennsylvania tEan IN
any other state since March IA, l9O0, the
total being 1856 new banks and Sl62l2,OOo
new Capitalization. OF the Pennsylvania
banks however, 105 with q capitalization
of s14 $4,000 were of the larger class. ana
but 81. with $2.0S1000 were of the smaller
class In Texas, which comes second in
mt al
capital with 1877 banks and 100000 new
capital t2G with capitalization of $3.50
900 were banks OF less than $4,000 individ-
ual capital, and thus represent the extern
sion Of the national banking system to
communities in which It was not avail
bic under the old law.
Georgia's Number 22.
Some of the southern states still seem
to be backward about organizing banks
under the national system Next to Texas
in the number Of new banks organized in
the southern states come the border states
of Virginia and West Virginia. with "a
and 33 new banks, respectively. Next
come Kentucky with PC, Georgia with o.
Alabama with IS. Louisiana and Tennes-
see with IA each, Mississippi with 8, Flor
ida and Arkansas with 8 each, and South
Carolina with but 8. South Carolina,
Florida and Mississippi have been partic-
uarly slow in awaiting themselves Of the
opportunity to organize national banks
in email communities each state having
organized but .. In Arkansas five of the
smaller banks have been organized; In
Louisiana +; in Alabama Z: in Tennessee
&. in Georgia and North Carolina IL each;
In Kentucky 49, and in Virginia and West
Virginia 20 fach
In some quarters fear has been eX-
pressed that the organization of large
number Of small national banks would
prove a source of weakness in times of
financial skringency. Tlis fear is not en-
terta ined however. by the comptroller
of the currency and others WHO have
made a special study of the subject. 1t is
believed rather that the banking system
of the country as 4 whole has been
strengthened rather than weakened by
the opera ton Of thu. law of March IA. 1900.
The princpa, reason. for this is that about
A per cent of the small banks organized
under that law represent conversions of
state banks or congratulations OF state
and private banks. In many OF these
cases the banks that have been converted
or reorganized were relatively weak state
or private banks with less than the mini
mum capital required for their inc0rpora-
ton into the national system They have
not only been forced to strengthen them
selves on entering into that system. but
they are now subject to the rigid reg,Ila-
tons and inspection prescribed by the ma
tional bank act and the officials Of the
cOmptrOllers office believe that in times
OF stringency the small banks will give
fully as good an account Of themselves as
tbp larger