Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1907-02-27
Under Law National Banks Cannot
Loan More Than 10 Per Gent.
OtthGir Stock to one Person.
MUST HAVE CONSENT OF THE
COMPTROLLER OF CURRENCY
To Create Repositories Examiners Who Are
Appointed by the President Required to
Make Regular and Rigid Examination
Of All Such Banks as Do Business
Under Federal Charter and
Report the Result
BY ID. l.. Parker.

In the 18th and 10th centuries
two of the most important reform
measures in the history of the coun-
try were born.
One in the interest of solvency in
banks, protecting the people from
complete financial destruction at the
hands of those entrusted with their
funds, thereby proving itself the sal
walton of financial responsibility is
known to us as the national bank
act
The other, which walks into the
workshops and commercial houses of
the scrupulous as we'll as of the un-
scrupulous, thoroughly examining
every article manufactured and of
fered for sale as food or drink, re-
curing certificate of purity for
each article put on the market,
emancipates the people from those
rotten" practices in business, for
which the latter half of the 10Th
century was infamous 1t is known
to us as the pure food law.
Because of these two reform meas
ures the 18th and 10th centuries are
Industrious. Under the national bank
ing law the conduct, to a very
large extent, of all national banks
is supervised by the United States
government. What the banks are
doing, to whom are they max
ing loans, on what security, wheth-
er the loans are beyond their
ability to carry, and in a word
whether the national banking laws
are being complied with. These are
matters of such vital Importance to
the people that the government hires
an expert and requires of him regu-
lar examinations of all banks doing
business under national charters.
One of the requirements of the
Jaw is that national banks must noA
under any circumstances, loan over
ten per cent of their capital no mat
ter what the security may be to one
and the same person. That is, if a
national bank of a capital of $780,
600 has already loaned Mr.. Smith
$4,000 it cannot, without increas-
ing it's stock, loan another penny to
that person no matter if the security
is backed by a Rockefeller fortune.
Another most important require
ment with which the law safeguards
the funds of the people is that ma
tiOnal banks may not select a de-
pository except by and with the con-
sent of the government. The safety
of the funds which otherwise might
find their way into ''shaky' hands is
thus, therefore, not only investigated
by the banks placing them but also
most thoroughly by the treasury de-
partment. This makes assurance
doubly sure, and together with other
provisions of more or less Importance
accounts for the fact that in case
nf 5anu trOnhlo HnnOSitnrS n opf
their money.
The article providing for regular
examinations to be made by national
experts, who scrutinize every detail
and require everything to be straight,
in exact accord with the provisions of
the act creating the banks and the
powers under which they may do
business in the several different
states of the Union is strictly en-
forced.
Americas, in common with other
progressive and enterprising cities,
has brought within reach of the peO-
pie this beneicient piece of legisla-
ton, in the establishment of the
Americas National, with l.. A. Low
rey as president; Crawford Wheat
ley, ice-president; NJ. NJ. LoWrey,
cashier; r. E. McNulty, assistant
cashier 1t has a paid-in capital of
100000 and otherwise secures de-
positors, whose accounts it sOlicits,
by an investment of 100000 in
United States bonds.
1t is the only national bank in this
territory. The bank has been in OPP
Grafton only six months, but has
made remarkable progress-a. pro-
gress born out of the spirit of this
Heaven-favored section as much as
out of the spirit of the law under
which it operates, the soul of which
is nrotectiOn.