Pocahontas star herald., 1922-04-21

Banking Department ID 1914 lnere
have been 75O state banks charter
ed in Arkansas. The records of the
department show that there are now
409 dong business. This leaves 347
to be accounted for; of this number
ll5 we're closed, llquidated or merg
ed with other institutions or went
out of order for one reason or anoth
er. This leaves 2S9 banks closed,
liouidated or merged prior to the
State Banking Department. Accur
ate information of the fate OF these
institutions is difficult to secure. II
has been learned, however, that S2
failed, 99 were reorganized or liquid
ated without loss to deposltors, l 3
were converted into National banks,
55 surrendered their charters and
no information is savallable about the
fate of the llo other banks. In an
address delivered before the state
Bankers Association at Hot Springs
Bank Commissioner Mckee paid
high tribute to those who have been
at the head of the institutions when
he said: "When 1t is seen that $50
banks have been organized by the
men of the state, merchants, profes
sional men and farmers, some OF
them we'll managed and successful,
some neglected by the directors,
some run by inexperienced ofhcer''
all of them permitted to do business
without restrictions of law or regu-
lations or supervision of any kind,
it is surprising that so many of them
survive; and again l must say it is a
source of gratl6cation that In the
main these free banking institutions
were officered by men Of integrity
and ability. 1t is also a tribute to
the soundness of the securities and
the integrity of the business people
OF the state and the, customers OF
these institutions. j think when we
compare the number of bank fail
ures Of this state with the number
that has happened in some adjoining
states we must feel that our men
and securities are better seasoned
and that the banking business has
been conducted on more conseIva-
tive lines" The first suggestion Of
the necessity of banking depart
ment Is found on the minutes of the
State Bankers ASSOCIATION In pa
per read by the late Judge w. S
Mccain on "Wbat Bank Legislation
if Any Is Needed IN Arkansas" on
April 10, 1894. At that time Judge
Mccain called attention to the neces
sry of some form of regulation, but
it was not for ten years sfterward
that any definite action was taken.
For several years the State Bankers
Association and the Legislature
wrestled with the proposition and
the law creating the State Banking
Department was finally passed In
1918 and approved by Gov. Joe T.
Robinson. Since 1914 there have
been organized and chartered by the
department 80 banks with a capital
of 50, 294, 600 and surplus of 1855,
400. During the same time 100
banks have increased their capital
stock total of So, $50 and 10
banks have decreased their stock
total of $ls5,s50 During the
eight years administration of the
law, ll5 banks were closed, merged
or failed and a great many weak
banks we're saved by the prompt ac
tion OF the commissioner. AS a
matter of fact there are frequently
banks that are on the ragged edge
of which the public IS never aware,
but by prompt action of the commits
soner are enabled to tide over their
difficulties and safeguard the inter-
ests of their depositors.
BRISTOW