The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1910-06-16
SOUTHERN BANKS
MULTIPLY RAPIDLY
Older Financiers View Fact
With Anxiety
NEW MOVEMENT SETS IN
Influx of Farmers. Establishment of
Industry and Expansion of Towns
Call for More Money-Mo-
bile Bankers View
NEW MOVEMENT SETS IN
From the Washington Herald.

From the Washington Herald.
A story is told that two of the pro-
5ectors of a new bank in Washington
called upon the president of one of the
largest financial institutions. who is re-
puted to be a wealthy man, and asked
rim to subscribe to the stock of the no
posed bank.
The president received his callers, lis
tened to what they had to say, and then
lectured them roundly for their audacity
in starting another financial institution.
The banker told them Washington had
too many banks now and that it was bad
business policy to start another. He said
the older banks were capable of taking
good care of all the business Of the city,
and could do 1t safer and more economi-
cslly than a new one could. The banker
declined to subscribe for the stock, and
the callers departed considerably disap-
pointed at the lack of sympathy dis
closed by the rich leader in enterprise
at the capital.
Illustrates Condition in South
This story is illustrative of the attitude
of the bankers in the principal cities of
the south, as they see smaller insttu-
tons springing up all over that section.
In the past banking in the south has
been largely confined to a comparatively
small number of banks in the large cities
with an immense clientage scattered
over a wide territory. In recent years
this condition of affairs has been
changed. Banks. generally national
banks, have sprung up with surprising
rapidity in the smaller towns and some
Ao xrhn T.
ton mills may have located and where
banking facilities in a small way are
new needed.
No doubt the multiplicity of smaller
l. stitutions has cut into the business
and profits of the older ones. and 1t is
natural that there should be greater
competition for deposits, and the new
order of things may be in many ways
distasteful to the big banks whose bust
ness largely came to them unsolicited
because it could go nowhere else
Looks Dangerous to Them
No doubt an element OF danger seems
tc exist in the minds of the older finan-
ciers lest some of these new banks will
be forced into suspension with attendant
loss of investors and possibly their at
titude is no more logical than that of the
Washington banker referred to-. A ma
tural limit may exist in any city and IN
banks should not be multiplied, but II
is hardly conceivable that this limit has
been passed in the south.
All information from the southern
states agrees that new industrial and
commercial movement has set In ther'
that makes the esta blishment of banks
at convenient points necessary. This
movement follows, and is part OF the
influx of farmers and the building up OF
the small towns more rapidly than the
big cities have grown in the past 1t al
means a different sort of demand fol
money and sharper competition In bust
ness. Quite possibly the rates of inter
est may be cut in upon and the prohls
of banks made a little less than when
the big institutions handled 1t all.
Outlook Seems Promising
The outlook for the coming trade sea
son in the south is declared by the bank
ers to promise well. The farmers the
timber interests and the manufacturer
are hopeful and are extending their ope-
rations Rates for money are low and tins
banks are doing all they can 10 encour'
age greater development.
In the cities, skyscrapers are takins
the place of the old fashioned br1ch
buildings and the appearance of the
streets is being transformed. 1t is pic
iture of growth wherever one goes. am
this is as marked in the small towns as
IN the cities While there Is perhaps no
exactly the vim and push that mas
marked the growth of new western
towns. it is so much in excess OF TINS
.ouths former lasstude in business az
fatrs as to amount practically to a re
generation. and it Is as pleasing as 1t II
surprising to the older generation In al
iris the banks are taking a. prominen
mart. and their progress is as marked a
that of any business interests. Their de
nosts are growing with the country
and the prospect was never brighter
than now for a good business future.
One Banker More Liberal
A prominent banker of Mobile takes {
broader view of the situation than SOM
of his compeers In recent interview
he is reported to have said:
eve are finding that the next step l.
to be the establishment of small bank
in the country towns" said one Of thu
leading bankers here today. ALREADY
are being organized little banks at mer'
cross roads, and they are taking up ;
great deal of local business
ITO be sure, they have only Unite
field vet. because the farming sections
are undeveloped: but they are growing a.
rate that means the eventual filling O
the field Just now there is strons
demand for money and the financing thu
crops calls for a great deal of capita