176 Urdahl—The Present Fee System in the United States. 
! 
B. BANKING PRIVILEGES. 
It required but a few years of actual experience to demon¬ 
strate the fact, that all kinds of corporations could not be regu¬ 
lated by the same kind of restrictions, nor could all be allowed 
the same privileges. It was early discovered that a banking 
corporation could not be given as much latitude as a manufac¬ 
turing concern. Re-acting against the abuse of the banking 
privileges which were granted just before the war, many of 
the Western states inserted a provision in their constitutions 
forbidding the organization and incorporation of banks within 
state limits. 1 This prohibition was soon repealed, however, 
because the need of banking institutions made itself felt too 
strongly to be resisted. The new bank act did not, however, 
provide sufficient safe-guards against frauds upon depositors 
and investors by means of bank failures. As a result, many 
states determined not only to regulate the incorporation 2 of 
banks, but to keep them under constant supervision by means 
of state bank examiners, who were given power to wind up the 
affairs of any bank which seemed unsound. In some states these 
examiners are paid salaries out of the treasury, while in others 
they are allowed to collect fees from each bank examined. 3 
A new departure in banking, in the form of building and loan 
associations, trust companies, 4 and the like, has grown up, and 
is flourishing in many parts of the country. These associations 
were supposed to be safer, in many ways better suited to the 
needs of the laboring classes, than ordinary banks. Their spe¬ 
cial character has been recognized in state laws, by special regu¬ 
lations and special incorporation fees, usually lower in amount 
than those collected from banks. Most commonwealths also 
recognize the nature of charitable, educational, and religious 
1 Constitution , la., 1846; First draft of the Constitution , Wis., 1848. 
2 North Carolina charges one half mill on each dollar of capital stock of 
banks, 1895, p. 122. Montana has divided banks into six classes, ac¬ 
cording as the aggregate business ranges from $5,000 to $250,000, with 
fees for each ranging from $40 to $400 per annum. 
3 The salary of Inspector of Finance in Vermont is apportioned among 
the institutions examined in proportion to their taxes. 
4 Laws, Ala., 1892, p. 665; annual fee, $200. 
