The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1905-05-19

most 10 De encouraged and helped.
The multiplication of small banks
over North Caroline is indicative Of
the progress above referred to, and
to the discussion of Industrial loans.
distended loans and rediscounts, it is
we'll to add another, viz: that the loans
of every bank should be we'll in hand
and easily convertible into cash when
needed.
Your officers and executive com
mittce have sought diligently to ac-
complish something of practical bene-
fit to the members of the association,
through the Legislature and other
wise. They have been successful in
| securing the abolition of the days of
grace, except as to sight drafts, thus
making the North Carolina law prac-
| tically conform to the Negotiable In
strument Law of other States and the
repeal of the law giving banks a prior
| lien on their own stock, thus adding
much to the available collateral that
was otherwise prohibited to the banks
Of the State; the Webb bill seems to
| have failed of passage in the closing
| days of the session of the last LegiS-
| lature-its provisions raising the min
imum capital of banks chartered in
the State charging the powers of the
Corporation Commission and provid-
ing for the examination of banks by
the directors, were good, and it. is a
matter of regret that it failed of it's
passage.
'"The Joint Finance committee of
the Senate and House of Representa-
tives recognized the justice of the
claims that State banks should be re-
lieved of the license tax, which is not
frequired of the National banks. but
they did not see their way clear to
abolish it at this time, neither did
they consider the question of treating
/ bank stock as a solvent credit
| These and other subjects suggest
ed by the members were considered
by your executive committee and the
various committees of the Legislature
with some hope Of future action.
ITO your presidents was COM
mitted the question of a Clearing
House or houses for North Carolina
and their report speaks for itself. That
some arrangement of this kind is de-
sirable there is no doubt, and some
practicable and feasible plan should
! be devised to expedite and facilitate
| the collection of items in North Caro-
| lima, now the most difficult State in
the Union 20 handle,
"A large portion of the association
| has beer mucn interested in n plan
| proposed by the Cotton Growers AS
| ISOLATION for the storage and handling
of cotton. A delegation was appoint
ed from the cotton belt of North Car
| DINA to attend the meeting that as
semblcd in New Orleans in January
! last, an account of which will be given
| by Col. VIM. II. S. Burgwyn, who was
in attendance at that time.
Your officers RECOGNIZING that a
portion of the membership of the as
sociatior was greatly interested and
another portion not interested at ALL
in the question, adopted the plan of
| leaving it TO the separate banks for
! their Individual action. and we think
the wisdom of this position has been
| fully demonstrated. We desire to
state that neither the association nor
It's president, although his name has
been used without his consent or APP
| prevail. mas had anything to do with
| the collection of what IS called the
bankers fund, to aid in this work"
In conclusion President Fries said:
II cannot close this address with
out gratefully acknowledging the efiic-
iency and courtesy of your secretary
and the members of the executive
committee, whose interest in the as
| ISOLATION has been manifested on all
occasions and commencing to the
members more enthusiasm and zeal
| in behalf of the association, which
| is q great factor in protecting and
furthering the best interests of the
| banks of North Carolina"
Interest on Deposits.
The paper by Mr.. w. l.. Borden was
read by the secretary and is in part
as follows:
The truism that, "there is nothing
new under the SUM-" is here rather
forciby illustrated.
Payment of interest on deposits, by
banks, is as old as banking itself, and
banking reached a high state of de-
velopment before the Christian Era,
among the Greeks and Romans, whose
banks exercised about the same fUnc-
tons as do our commercial banks
of today
1t is a time honored practice which
seems to be with us to stay, and While
there are yet, some of our successful
bankers who advertise that they pay
no interest on deposits. most of these,
either control. or else are closely allied
to a savings bank, which does pay
interest
The tendency is, not only to pay
interest on time deposits. but also to
allow interest on daily BALANCES; and
as our country develops. and the de-
mands for money increase, this ten
dency will grow. 1t is condition
which we must sooner or later face,
and those of us who do not like 1t !
must eventually get out of the bank
ing business, voluntarily, or else be
forced out by competition; unless, in
deed. there is some concert of action
among the banks themselves abolish
ing the practice. Under present con-
ditions, it is self evident that banks
must allow interest, or else submit to
having a considerable amount of
money which would naturally stay
at home go elsewhere, for the de-
velopment of other sections.
Bankers, who as a class are pub |
lie spirited, and ever alert 10 the adj |
vancement of their various sections, |
will not face such a condition. On
the contrary, their effort has been
not only to keep home . money at
home, but also to reach out for that
of other communities, and the result |
is that competition has grown sharp |
er and the margin smaller.
A pertinent question arises here. /
Where is this race for deposits-to
say nothing of the race for collec- |
tions-going to end? While we were |
able legally to get a per cent for
money, and Is to Ia for collections |
we could easily afford to pay 4 per
cent for time deposits, and at the |
ca mo tirno make n satisfactory show |