4 I2 CHARLES J. BULLOCK 



al banks and but 1,022 state associations, while in 1902 there 

 existed 5,397 state banks, and 4,601 national. In point of re- 

 source and banking power the national associations still retain 

 their preeminence, having nearly three times the capital and 

 over twice the deposits shown by the state institutions; yet 

 banks of the latter class are increasing more rapidly than those 

 of the former, despite the temporary influence of recent 

 changes in the national banking laws. 



The state banks of deposit and discount have multiplied 

 rapidly in the Mississippi valley, and especially in the south 

 and west. In general, the laws under which they are formed 

 are more liberal in their provisions concerning loans upon real 

 estate, and permit the establishment of banks with smaller 

 capitals than are required under the federal statutes. The 

 last circumstance accounts for the rapid growth of state asso- 

 ciations in communities where a capital of $25,000, the mini- 

 mum fixed for national banks, is too large to be employed with 

 the greatest profit. In some cases the state laws may verge 

 perilously toward the point of laxity, but in general these 

 banks are safely conducted and enjoy excellent credit in their 

 own communities. In New England and the middle Atlantic 

 states a decided preference is shown for national banks; but 

 New York has nearly two hundred state associations, some of 

 which, in New York city, make large advances to operators on 

 the exchange. 



Private bankers are very numerous in most parts of the 

 United States, and are usually allowed to conduct their busi- 

 ness without public supervision. In 1902 no less than 4,188 

 such individuals or firms paid the internal revenue tax then 

 levied upon their capital and surplus. In most sections their 

 resources are small, and their average capital in many states 

 does not exceed ten or fifteen thousand dollars. In agricul- 

 tural districts such agencies are useful in supplying credit fa- 

 cilities, but in recent years the state bank with small capital 

 has secured an increasing share of such business. Our large 

 cities, however, have many private bankers who are conduct- 

 ing enterprises of the largest size. Besides receiving deposits 

 and making discounts, these firms frequently do a brokerage 

 business or deal in foreign exchange. Many of them have 



