The commonwealth. (Scotland Neck, N.C.) 1896-1929, 1909-01-21
Governor kitchin S
Inaugural Address.

disease breeding conditions and will
be the NEST productive lands in the
State. The State can undertake the
drainage and levy assessments on the
benefited land for expenses, but Go
not think there is a present necessity
for this method. An experiment on
a small scale is worth trying in the
drainage of some of our swamp land.
Also some comprehensive, liberal
and effective law should he enacted
authorizing upon just terms and I'M
der proper regulations private own
ers Of swamp lands to. enter upon
the lands of others purpose Of effect
ual drainage.
BANK DEPOSITS.
The last platform upon which the
incoming National administration
was elected declares for postal saw
ings banks, and it is not unreason-
able to presume that before that ad-
uinistratien ends Congress will obey
the pledge of the Republican party
and establish postal savings banks.
The National Democratic party is
likewise conditionally pledged to pos
tai banks. Under present conditions
certain results may confidently be
predicted from the postal savings
bank system. Vast sums Of money
in small individual accounts, much
Of it now in the pockets Of the peo-
pie, will be placed in these postal
banks, as the Federal government
will guarantee its safety. This
money will, in turn, be deposited in
| the National banks with the inevita
Die results that greater proportion
Of the cash Of the country will find
it's way to the national banks in the
money centers-that is in the larger
cities Of the country, not one of
. which is in our State. These results
will tend to drive every State
bank out Of business, as State banks
cannot be expected to stand the COM
petition with rivals having much adj
vantage over them, and thus a
mighty impulse will be given to cen
! tralization and Il serious blow upon
the independence Of the State inf1ict-
ed. AS no National bank can have
a capital Of less than S25, 900 there
would be danger that many OF our
small towns would be deprived of
banking facilities which they now en-
! JOY. Our State banks are the crea-
lures Of our own legislation They
nave blessed the State, and especial
" the smaller towns. They have
aided and encouraged our enter
prises. Their record has been one
of merit and safety. In comparison
/ with national banks and measured
] by assets lost or deposits involved in
| failed institutions our State banks do
not suffer, as the history of the last
generation shows. Uuder present
conditions when bank solvency is
suspected by other banks and other
banks are the first to suspect it, then
every bank in that vicinity is in self
defence compelled to hoard its cash
and withhold it from solvent borrow
ers for legitimate purposes so as to be
prepared to meet any probable run
on it caused by the anticipated fail
ure Of the SUSPECTED institution.
With the present stockholders liabil-
ity and proper inspection our State
system is rightfully pronounced
sound and safe. Yet something fur
tier is needed, not merely to encour-
age our people to deposit their money
instead Of boarding 1t, to moderate
the effects Of panic, to prevent runs
on solvent banks, and to insure de
positors, but to enable our banks tc
survive the postal savings bank sys-
tenn. In my judgement the bank
guaranty deposit policy will benefit
not only the banks, but very greatly
the public. All successful banks
prosper on the money Of depositors
The State and Federal Governments
REQUIRE security for their deposits
!. with banks, yet these public deposits
produce but a small part of the pro
fits of banks. The individual depos
itor contributes the greater part OF
the money from which profits arise
Every banker ought to be willing t.
have those deposits which enrich
) him thoroughly guaranteed. real
ize that Governor who has no pow
er toforbid or veto harmful legisla
ton canhaye little power in advancing
beneficial legislation. He can, how
ever, and it is his duty, to recon
mend to the Legislature what he re
CARDS as wise and helpful, leaving i
as it ought to be left to the judge
ment of the legislators, chosen by
the people for the purpose, in thei
wisdom to follow or reject his sug
/ gestioIs. 1t is with such recognition
that I have t1oI7rht rrcpor W ,.,cr,