Pine Bluff daily graphic. (Pine Bluff, Ark.) 1893-1942, 1916-08-11

TALKS ON BANKING.
STATE BANkS.

There is no material difference be-
tween a state bank and a national
bank except in the one aspect, men
toned in the last banking ak, name
ly that state banks do not issue bank
notes. While the laws Of some states
permit state banks to issue their
own BILLS, he national banking act
imposes a tax Of ten per cent upon
all such issues, thereby making them
Improbable.
The national banking act provides
that every national bank shall have
the ward National" in its title, the
only exceD ions being three Banks,
one in New York, one IN Philadelphia,
and one in Pittsburgh, which are al
lowed to use their old name with the
initials on B. A." (National Banking
association in their title. Therefore
the bank that does not have the word
Ma ional" in its title is a state bank.
BY that token you may distinguish
between the two.
State banks are more numerous
than national banks by nearly four 10
one, the reason being that in some
states smaller capi al IS allowed for
state institutions than for national
banks, in some PLACES running as low
as ten thousand dollars.
State banks are under the iuris die
ton Of the sta es, and most of the
states have a department Of govern
ment called the "banking depart
ment," as rule, and the official in
charge superintndent Of banks, bank
ing commissioner state auditor" C.,
who examines the banks under his
jurisdiction, as q rule about once a
wear, but frequently more often, and
to whom the banks must report usual
y without notice as called fer, from
two 20 four times a year.
State banks do precisely the same
kind OF business as carried on by ma
tional banks, namely. receiving de-
posts, paying checks, discOunting
promissory notes and making loans.
State banks everywhere are permit
ted to lend on mortgage loan. privi-
'ege denied national banks, until the
passage Of he federal reserve act.
Even yet national banks in large
cities cannot make mortgage loan.
The state laws are not uniform bv
any means, and vary rs the lawmak-
RS have deemed wise. The main
difference lies in the supervision and
lot II the manner of conducting bust
ness. II fact, if you were to 20 into
national bank as an emnioye and
hen in a state bank you would find
no difference. except in the matter
Of reports and supervision.
even distinguish the one as better
han the other. It depends altogether
lpcn the men. A bank is no more or
'ess than an aggregation of men. and
Glands or falls as the men sta8d or
fall. A bank is as good as the men
IN control and no better It is con-
feded that our state laws, in en-
couraging state banks, have done
much to promote the welfare of the
country. The bank by It's process of
Sath ring the funds of the neighbor-
mood and putting them to coed uses
ave added materially to the growth
ct communities. In places where Il
would seem there was no money
1anks have been established and have
orospered. and in prospering them
selves have helped the community TO
prosper, for the process of gathering
money and Ending to local borrowers
can have but one result, and that is
beneficial.
State as we'll as national banks by
0ropagandas in the line of better
agriculture, civic improvement and
thrift, have done much for their re-
spectiv5 communities and the place
sor every dollar that IS not in current
use is in the bank Of your choice
where it will accomplish its beneficial
work both for you and for the COM
munity of which You are a part.