The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1907-07-28

count only, while the function or issu-
ing money lie monopolized by the ma
tional banks by means OF 10 per cent.
tax.
National control Popular.
Mr.. y. A. Tompkins, one OF the best
Informed men In the South on the
banking business. III discussing with
your correspondent this subject. said:
1.-THE national control OF banking
seems to be growing ever moro popu-
lar, and we now hear great deal
about government ownership OF rails
roads. There are people who renen'.
Der the infinite confusion which used
to exist before the war in tho values
| OF bank notes. In those days State
banks issued money, and its value was
ALMOST as variable as cotton mill stocks
are now. Little books were issued,
giving the value OF different bank
stocks, and, In travelling. one had TO
lcarry one Of these books along to
Ishow at what discount different moneys
might be received.
9TH. tendency OF the present time Is.
Ito extend the national banking system
}lby permitting such banks to issue
limited amount OF currency on assets
Ito give flexible feature to the money
q system OF the country.
1"rhe North Carolina banks are In q
very prosperous condition, as are, In
Ifact, the national banks also. Al
Though the State banks are banks OF
discount and deposit only, they are not
as much restricted in their operations
las the national banks are. and there
7 fore, the privilege OF issuing money y
J offset by the privileges enjoyed BY the
d State banks which are not given to the
national banks"
! Continuing. Mr.. Tompkins said: The
national banks are so generally salts
. factory, and are 40 we'll regulated, that
I of necessity State banks must follow
the lead Of the national banking law
lin many particulars. State banks must
4 be given some points OF advantage over
Z the national banks to offset the privi-
|lege OF issuing money. The national
banking law is OF itself more or less
: a patchwork. Many amendments have
been made since the original system
was devised. 1t Is not very long ago
that national banks could issue only
;. 90 per cent. Of the value OF bonds held
Z to secure the money. Now the law is
. SO amended that they can issue 100 per
cent"
: Carefully Made Law.
The North Carolina law Of 19o3His
! not a patch work. 1t was rewritten en-
tirely, and covers most OF the good
points Of banking laws OF other States.
Many States have very little lazy on
? the subject of State banking. and the
t ones that are In force are not general
Land comprehensive. The North Caro-
lima law gives ample security to the
9 depositors, requires the responsibility
Z OF the stockholder and is carefully
u guarded by the Corporation Commits
Q sion through a capable and reliable
: State examiner.
). The fact that North Carolina banks
= have to make five or more annual
statements to the commission, and
publish the same In local newspapers
Ills interesting. The bank examine,
+ pays every bank IN the State two OF
more visits each year. and his calls
= {are made Just as the national exam
= liner makes his. The North Caroline
:, lawmakers believe that frequent ex'
+ animation and the publication of regu
s liar reports Is the best way to protec
! the interests OF the people.
= Every State bank shall at all timeI
!. have on hand as a reserve in available
: funds an amount equal to at least II
per, cent. OF the aggregate amount 0
It's deposits. Two-hfths OF such i
I per cent. shall be In cash In the vault
= of the bank. Savings banks shall hay
. on hand at all times. as reserve II
available funds. an amount equal TO
least 5 per cent. OF their aggregat
= deposits,
One section OF thet State law pro
vides that loans to ono person or com
pany shall not exceed 10 per cent. Q
the capital. The clause reads: 9TH
J total liabilities to any bank Of an
= person, or company, or corporation, Q
nrm. for money borrowed, including 1
the liabilities OF a company or flrm tn
4 liabilities Of the several member
thereof, shall at no tina exceed one
tenth part of the capital stock Of til
bark actually paid in. But the dis
count of bills Of exchange, drawn !
good faith against actually existin
sEvalues, and the discount OF commercia
II or. business paper actually owned b
the person negotiating the same, sha
not be considered as money borrowed
This section shall not apply to bank
With paid-up capital stock Of sloo
900 or less
liability OF stockholdcr.
q Another section 'the individual liza
bility of the stakeholder" is impol
II tant 1t declares: THE stockholdei
y OF every bank organized under tn
laws OF North Carolina, whether unde
!, the general law or by special act sha
~ be individually responsible, equal
~ and ratably, and not one for anothe
for all contracts debts and engag,
5a ments of such corporation, to the Q,
80 tent of the amount OF their stoc
y Therein at par value thereof. in add