The Washington herald., 1913-09-25
its quarterly dividend October /, adding
$4,000 TO the October disbursements
Actual Figures.

A Southern banker figures cut the posi-
tion of his bank Under the Glass measure
as follows:
Take us as an illustration, and We
are larger than a majority of the country
| national banks. with our S1sO, 900 capital
and a,0Oo.OOO OF deposits To carry our
business We have TO have in our vaults
about $4,000. at Jacksonville about SIS, 600,
and $4,000 in Philadelphia or New York
The Regional Bank will not enable us
to. cut down these amounts one penny.
we have TO have about % per cent in
cash and balances in order to collect our
! out-ot-town checks and be able TO pay
the checks on this bank as presented
and care for our customers In our ter
ritory We are the only National bank,
and yet there are twenty-one State banks.
trust companies, and two savings banks.
If the national bank act offers so little
now, what will it offer under the new
law?
'First-We will have TO buy $4,000 GO
per cent of our S1J0OO0 capital stock) in
Regional Bank stock limited to per cent
dividends. We can loan this money here
or almost anywhere in the South at
and per cent. In loaning il locally you
know we can get some good accounts by
reason of the accommodations extended
customers
"Second-We will have to carry a
deposit of $4,000 g per cent of our $1,000, =
900 deposiO with this Regional Bank. and
without receiving any interest on it. The
central banks today pay > per cent, and
most Of the Southern centers pay per
cent
''Third-we cannot reduce by one
penny the amount of cash balance We
have to carry at certain points TO pay
checks drawn on us, and collect checks
deposited bV our customers
I'm other words this $4,000. which we
have to tie mp in the Regional Bank is
really that much out of our capital stock.
Instead of having $4,000 capital we will
only have $4,000. AS this SSO.eOO is worth
s per cent TO us or s.. 400 We will have
to pass up that amount If We stay in
the national banking system.
"FouTth-We are to remit for all clear
ing checks at par. This means another
less OF $500 to 5000. II actually cost us.
clerk hire. stationary. shipments of cur
renCy. &c, about $500. Then instead of
being out $6.4OO We will be out between
$1,000 and $4,000 or per cent of our
capital stock just to be able to hang
sign out National Bank.
What is all this for? Just TO be able
TO borrow a little money. l have been
banking fifteen years, and have always
been able to borrow such money as we
bad. In 1907. in the height of the panic.
we experienced no trobule borrowing
$4,000 from the National City Bank of
New York. who charged us interest at
the rate of per cent per annum.
Now, let's see about borrowing money
from this Regional Bank. They will take
certain commercial paper and high-grade
bonds, ! believe. The average country
banks loans are to farmers and small
lv,N
high ratings that would be Tequired-the
country bank has little or none in COM
mercIal paper and the same of hight
grade bonds-so what can they expect
from the Regional Bank? Since we have
been a National Bank We have actually
lost nearly 5000 n premiums on govern
ment bonds and deposited to secure cir
cula ton. This is a lot OF money for a
bank TO lose and Is three times
the amount Of money we have lost since |
in 1902 in loans and invest |
ments.
There is some consolation in the fact |
that our State Legislature has just ud- |
iourned. and will not meet for two years !
the hysteria of Bryan guarantee Of bank !
deposit has eNploded-a State bank char |
ter costs only g., and If this proposed !
currency measure goes through We will |
write out The First National Bank and |
write in The First State Bank and con- |
tinue at the same old stand. We will |
have lots Of money in changing charter
no doubts TO that in my mind