The Daily Ardmoreite. [volume] (Ardmore, Okla.) 1893-current, 1916-07-27
BANKING TALK,
ARE VAR|O Us
KINDS Of BANKS
EACH WITH A DISTINGUISH
ING CHARACTERISTIC WHICH
is WELL FOR EVERY CITIZEN
TO KNOW.

To the average person a bank is a
bank-"a place to put money" and
for all ordinary purposes this is
enough to know, provided, of course,
the bank is sound and worthy of con
fidence. 1t is well, however, to un-
derstand that there are different
kinds of banks, and to know the
distinguishing characteristics of each.
We have in this country four kinds
of banking institutions; (a) Nation
al banks (b) State banks; (c) Trust
companies; I'D Savings banks. All
the foregoing receive money on de
posit and pay it back again, as a rule,
on demand; but the rules under
which deposits are received differ.
All the foregoing but the savings
banks have capital stock and are
owned and controlled by stockhold-
ers. Savings banks are of two kinds
stock savings banks and mutual
savings banks. The difference be
tween these will be noted later, the
present talk will treat of national
banks only.
National banks are under the di-
rect supervision of the Comptroller
of the Currency and are not subject
to state laws except in the matter of
taxes. In country districts they can
not organize with a capital of less
than $4,000, while in larger places
the capital requirements are greater.
National banks do a general banking
business, which consists of receiving
deposits, paying checks and making
loans. The one feature which dis
tinguishes national banks from all
others is the issue of national bank
notes, which form a large part of the
currency of the county.
These notes are secured by govern
ment bonds deposited with the treas
urer at Washington, and every
national bank note is in reality part
of a government bond, cut up into
small denominations Tor convenience.
Under the Federal Reserve Act these
will ultimately be retired and the
Federal Bank Notes will take their
place, but it will be some years be.
fore this is accomplished
The national banks were instituted
after the civil war as agencies of the |
government, and were in reality or
ganized under plan which made a |
market for the government bonds |
They are required to report to the |
of, the currency five |
lines a year without notice, the re-
port dating back a few days for OBJ
1ious reasons. They are also requir-
I'd to be examined twice each. year by |
he directors, and are visited by the
rational bank examiners also twice
Zach year without notice. The eX-
lminers go carefully into all the var
Gus details, particularly into the
oans, and are as conversant with the
arger borrowers as the directors.
The national banking system has
oroven sound in its principles, effici-
mt in its management, and satisfac-
ofy in all its operations. Under the
federal Reserve Act member banks
nay take promissory notes of a GER
ain type and turn them into money
n the course of a few hours, by re
iscounting them at the Federal Re
erve Bank, which is a valuable fea-
ure. This is not to say, however,
hat a national bank is better than
ny cher type of institution, but they
ave enjoyed long years of pros
erity and able management, with lit
lie loss to their depostors.