Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-01-16
REGULATION of Banks.

The recommendations to the genera
assembly Of Mr.. B. ]. Rhame, the state
bank examiner and the reply of Mr.. s
M. McNeel thereto, printed in another
column, are quite interesting as being
calculated to stimulate inquiry into
subject that is Of very considerable i'm
portance to the public.
While we do not know a great deal
about Mr.. Rhame from the standpoint
of either character or capacity, all OF
his recommendations strike us as hav-
ing been made in the public interest
and furthermore, we are impressed
with their wisdom and soundness. We
are not inclined to accord a great deal
Of credit for originality, because each
and every one Of the recommendations
is in operation in some one Of the other
states and the laws Of several Of the
states include the whole list.
The experience Of generations has
shown the necessity for throwing ev-
cry reasonable legal safeguard around
the banking business; but nevertheless
it is a fact that while there is a lot of
verbiage in the laws Of South Carolina
on the subject, which verbiage Is so
constructed as to create the impression
that it covers the matter with thor
oughness that leaves nothing to be de-
sired, the laws are really worthless.
The recommendation that a director
be required to take an oath strikes us
as good. So far as we are concerned,
we would believe no mans oath whose
simple word we would not believe. But
danger of prosecution for perjury, as
slight as that danger Is, helps to keep
the venal man straight.
There are many directors who leave
the whole thing to president and CASH
ier, and in most cases this Is the wisest
thing to do: but still, directors should
be required to keep in close enough
touch to know what is doing. However,
we do not attach great deal Of i'm
portance to this proposition, because in
many cases it is an easy matter for the
tors who are incapable Of being other
than dummies.
The proposed charter board" is good
in theory only, because If the board is
political then the banks will be politi-
cal, and the influences that control the
proposed charter board will be able to
establish or suppress banks in accord
ance with the desires Of their interests.
The proposition to prohibit banks
from loaning directly or indirectly to
its own officers, directors or employees
strikes us as good, and there is much
that could be said on the subject; but a
sufficient reason is that officers who
have the refusal Of the resources un-
der their control, are often subjected to
undue temptation, and they frequently
yield to such temptation to the very
great injustice Of people who have
higher and better claims.
A sensible level-headed board Of di-
rectors will neither borrow nor loan in
inordinate amounts; but nevertheless
many a wild cater has come to grief
on just this very account, and good
healthy enforcible law on this subject
can do no harm.
With the suggestion to outlaw pri-
vate banks, we most heartily agree.
There are individuals, thousands Of
them, who are capable Of operating a
private bank with all the fairness, abil-
ity and justice that is sought by the
best corporation laws; but still the
- L. IL O., ,,eI, 1o on
portunity for discrimination and op-
preston, and where such opportunity
exists there should be provision for le-
gal supervision.
However, Mr. Rhame's last recon-
mendation Is probably the best in the
list. II there should be provided ade-
quate penalties for the violation even
of the present laws, there would be
need for but little further regulation.