Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1905-03-02
OF BANKING LAWS

Real estate is recognized as the
very best collateral for bank loans,
yet under the national banking
laws national banks are debarred
from lending money upon such
property and oftimes to their great
disadvantage. Congressman E. B.
Lewis addressed the House Tues
day night upon the subject, advo-
eating an amendment to the law.
Joe OH, the Washington CORES
pendent, has the following outline
of Mr.. Lewis very able speech:
Congressman Lewis, of Georgia,
addressed the House at the night
session in advocacy of several
changes in the national banking
law, intended to perfect that sys-
tenn of banking and serve the best
interests of the people. He did
not discuss the merits or dement's
of a system of national banks as
contrasted with state banks, but
he contended that inasmuch as the
national banking system is now in
existence, it should be perfected in
any way calculated to be of great
est benefit to people as whole.
He especially advocated the bill
introduced by himself and favora-
bly, reported by the committee on
banking and currency to authorize
national banks to make loans upon
real estate.
This bill porvided that national
banks may loan % per cent of their
capital on real estate to the extent
of 80 per cent of the commercial
value of such property exclusive
of improvements, each bank being
restricted in making such loans tC
the state or territory in which such
bank is located.
He held that real estate as col.
lateral, had been ostracised long
enough, and that by making rea-
estate good security for such loans
the interest of the people, particu
larly in the South and West, would
be served. He contended that ma
tional banks, having advantage
over all other banks by reason o
governmental favoritism, should
be made to serve all interests alike
Mr.. Lewis showed that at tn,
present price of government bonds
upon which national bank currenc,
is based the banks profits ON sucl
issue amounted to / per cent, tina
national banking association being
under governmental control haC
better credit, and many of sucl
banks were the beneficiaries of tn,
large government deposits. FO1
the past six years the government
has been keeping one hundred anC
fifty million dollars on deposit il
such banks without interest.
The opponents of the resolution
to allow national banks to LOAF
money on real estate urge as thei
only argument that banks coul(
not realize on such loans as quickl,
as on other securities.
Mr.. Lewis contended that rea
estate is the most stable, the best
the safest of all collaterals, and b.
considered loans upon such securi
ty not only the best that could b,
made, but he held that this kin(
of security could be realized a
promptly as security for other TIM
loans.
He argued that the landed inter
ests should not be ignored longer
They are the basis of all progress
and prosperity, and upon them ar
dependent all other lines of bust
ness. He showed that the agricul
tural crops coming directly from
the lands maintain the supreme,
of this country in the trade of tn
rest of the world, and he contend
ed that it is wrong and unjust t.
longer discriminate against tn
land upOnwhich they reproduced
| Because of his being a prominen
member of the committee on bank
ing and currency, and because hi
views upon banking and currenc,
matters are highly valued by hi
fellow members, Mr.. Lewis speed
was given a cordial reception, AM
his arguments in favor of loans o.
real estate met with many evi
dences of approval on both side