Belding banner. (Belding, Mich.) 1889-1918, 1916-12-27
Talks on Thrift


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There is no material difference be-
tween q state bank and a national
bank except in the one aspect, name
ly 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 Pittsburgh, which are
allowed 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 between 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
is ten thousand dollars.
State banks are under the juris-
diction 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
under his jurisdiction, as rule about
one a year, but frequently more Of
ten, and to whom the banks must re-
port usually without notice as call
ed for, from two to four times a
year.
State banks do precisely the same
kind of business as is carried on by
national banks, namely, receiving de-
posits, paying checks, discounting
promissory notes and making loans.
State banks everywhere are permit.
ted to lend on mortgage loan, a
privilege denied 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 uni
form by any means and vary as the
lawmakers have deemed wise. The
main difference lies in the supervi-
sion and not in the manner of con-
Quoting business. In fact, if you
were to go into a national bank as
an employee and then in a state
bank you would find no difference,
except in the matter of reports and
supervision.
1t would be unwise and unfair to
even distinguish the one as better
than the other. 1t depends altogeth-
err upon the men. "A bank is no more
or less than a aggregation of men,
and stands or falls as the men stand
or fall. A bank is as good as the
men who control it and no better. 1t
is conceded that our state laws, in
encouraging state banks, have done
much to promote the welfare of the
country. The bank by it's process of
gathering the funds of the neighbor-
hood and putting them to good uses
have added materially to the growth
of communities. In places where it
would seem there was no money,
banks have been established and have
prospered, and in prospecting them
selves have helped the community to
prosper, for the process of gathering
money and lending to local borrow
ers can have but one result, and that
is beneficial.
State as well as national banks by
propagandas in the line of better
agriculture, civic improvement and
thrift, have done much for their re-
spective communities and the place
for every dollar that is not in cur
rent use is in the bank Of your
choice, where it will accomplish it's
beneficial work both for you and for
the community of which you are a
part.