The Twin Falls times. [volume] (Twin Falls, Idaho) 1905-1916, 1916-08-24
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TALKS ON BANKING.
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STATE BANKS.

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 talk. namely
that state banks do not issue
! bank notes. While the laws of some
states permit state banks to issue their
own bills, the National Banking act
imposes 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 word National" in its title. the
only exceptions being three banks,
one in New York, one in Philadelphia,
and one In Pittsburg, which are al
lowed to use their old name with the
initials IN. b. "A. National Banking
Association in their titles. Therefore
the bank that does not have the word
National" in its title is a state bank.
BY that token you may distinguish be-
tween the two.
State banks are more numerous
than national banks by nearly four to
one, the reason being that in some
states smaller capital is allowed for
state institutions than for national
banks, in some places running as low
as ten thousand dollars.
State banks are under the iurisdic-
ton of the states, and most of the
states have a department of govern
ment called the Banking Depart
ment," as a rule, and the official in
charge Superintendent of Banks,
Banking Commissioner, State Audi
tor, etc, who examines the banks I'M
der his jurisdiction, as a rule about
once year, but frequently more Of
ten, and to whom the banks must re-
port usually without notice as called
for, from two to four times a year.
State banks do precisely the same
kind of business as carried on by ma
tional banks, namely, receiving depos-
its, paying checks, discounting prom
issOry notes and making loans State
banks everywhere are permitted to
lend on mortgage loan, a privilege de-
MED national banks, until the passage
of the Federal Reserve act. Even yet
national banks in large cities cannot
make mortgage loan. The state
laws are not uniform by any means
and vary as the lawmakers have
deemed wise. The MAJ difference lies
in the supervision ana not in the man
ner of conducting business. In fact,
if you were to 80 into a national bank
as an employee and then in a state
bank you would find no difference, ex-
cept in the matter of reports and sup
ervision.
1t would be unwise and unfair to
even distinguish the one as better
than the other 1t depends altogether
upon the men. A bank is no more or
less than an aggregation of men, and
stands or falls as the men stand or
fall. A bank is as good as the men in
control and no better. 1t is conceded
that our state laws, in encouraging
state banks, have done much to pro-
mote the welfare of the country The
bank by its process of gathering the
funds of the neighborhood and putting
them to good uses have added materi-
ally to the growth of communities. In
places where it would seem there was
no money, banks have been establish
ed and have prospered, and in pros
pering themselves have helped the
community to prosper, for the process
OF gathering money and lending to
local borrowers can have but one re-
suit, and that is beneficial
State as well as national banks by
propagandas in the line OF better ag-
riculture, civic improvement and
thrift, have done much for their res
pective communities and the place for
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 community
OF which you are a part