Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1914-02-17

Among the recommendations in his
annual report, State Bank Examiner
Rhame says:
There should be some restriction as
to the number Of banks. Almost any
three or more individuals can operate
and organize bank for time, and no
one can lawfully prevent them even
though the incorporators might be alb
solutely incompetent and financially ir-
responsible. Often the seed which later
develops into second bank in a com
munity, where only one bank Is need
ed. is sown through local jealousies
and factional quarrels, irresponsible
parties who have been denied loans by
the existing bank are often the most
aggressive agitators for a second bank
A new bank organized under circum-
stances where the established institu-
tion affords ample banking facilities
readily takes on undesirable loans
from these same promoters who are
primarily interested in obtaining cred
it beyond what their financial respon-
sibilities would warrant. 1t would seem
to be the plain duty Of our law-making
bodies to place upon our statute books a
law which would make it impossible
for bank to be launched upon COM
munity until every precaution had been
taken to ensure honest and capable
management, and to ascertain that the
locality would support the new bank as
we'll as the old one.
While there is much reason in what
Mr.. Rhame says, we are inclined to
think his viewpoint is hardly broad
enough to suit the public, for most
certainly there are two sides to the
question discussed.
The principal Office Of a bank is to
facilitate financial cooperation neces-
sary to develop the fullest resources of
town or community; but except for
the hope Of dividends there would be
no banks and in further considering
the questions raised by Mr.. Rhame. it
is we'll to keep in mind this relation of
origin and purpose.
1t is probably fact that local jeal-
ousies and factional quarrels have
more or less influence in the conduct
Of the average country bank; but may
be 1t might be just as we'll to admit
that sometimes these local jealousies
and factional quarrels have more or
less foundation in conflicting interests
and aspirations that rise above mere
personal pickering.
We are willing to admit that in any
event, whether the trouble be the i'm
portunities Of the irresponsible or the
reasonable claims Of the meritorious,
the individual or acknowledgements
ly an individual-upon whom devolves
the responsibility and discretion of
loaning a banks money has trying
task. 1t is a rare thing that any bank
ever has available more money than it
can loan to the most desirable custom
ers, and it is frequently a matter of
having to discriminate between pa
irons simply because there is not
enough accommodation available to go
around Also there are opportunities
from the irresponsible and from the re-
sponsible but more or less reckless
and from other kinds. Among them
all, be he ever so fair and just, the Of
ficer who finally determines on the
placing of loans, must spend a good
portion of his time in pretty warm
water.
But really, we do not think irrespon-
sible agitators count for much, not
withstanding they may be numerous
and persistent We grant that they
may be the means of organizing new
banks where such banks are hardly
necessary; but it is rarely the case that
such organizations do them any good.
If there is any one thing that is more
timid than accumulated savings that
one thing has not yet been catalogued,
and it is the rule that when people in
vest their money in bank shares they
generally watch it up closely enough to
see that very few irresponsibles get a
show at it.
There is another thing, however, of
Importance that Mr.. Rhame has not
touched upon with a great deal Of en-
phasis. We agree with him that among
the managers Of the bank, especially
in small communities, there are many
who are unfit from more standpoints
than one. The man who controls a
mans money has great power to help
or hurt, not only the irresponsible; but
the perfectly reliable and responsible.
While the placing Of safe loans for
proper purposes is supposed to be the
sole object Of the bank management,
such is not always the rule. Here is
where local jealousies and factional
quarrels," as Mr.. Rhame calls them,