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THE UNIVERSITY OF NORTH CAROLINA
Published Weekly by the
University of 'North Caro
lina for the University Ex
MAY 12, 1926
CHAPEL HILL, N C.
THE UNIVERSITY OF NORTH CAROLINA PRESS
VOL. XII, NO. 26
,r J: E. C. Branson. S. H. Hobbs. Jr.. L. E. Wilson. E. W. Kniitht. D. D. Carroll. J. B. Bullitt. H. W. Odum.
Entered as second-class matter Nocerabet 14. 1914. at the Postoffioe at Chapel Hill. N. C.. under the act of August 24. 1912
OUH BANK RESOURCES
OUR BANK RESOURCES ^
The. table which appears elsewh^
shows how the counties of North Caro
lina rank in aggregate bank resources
on a per inhabitant basis for the year
1926. The table is based on the June 30,
1926, Report of the State Corporation
Commission, and the December 11, 1925,
Report of the Comptroller of the Cur
rency. The table covers all state banks
and trust companies, industrial banks,
and national banks. In North Carolina
all banks, other than national, must be
chartered and supervised by ^he State
Corporation Commission. Thus the table
covers every type of bank in the state.
The table is derived by totaling the
bank resources of all banks within the
county borders and dividing the aggre-
^^ate resources by the population. The
parallel column gives the aggregate
bank resources in thousands. In a few
instances where banks operate branch
banks in other counties, the resources
are credited to the county in which the
parent bank is located. The branch
banks are not reported separately.
North Carolina’s bank resources total
$438,514,207, or $181.76 per inhabitant.
The total includes the recently estab
lished industrial banks which are re
ported separately from our state banks
and trust companies.
Mecklenburg county now ranks first
in the state both in total bank resources,
$60,790,000, and in the bank resources
per inhabitant, $590.30. New Hanover
ranks second in bank resources per in
habitant, while Forsyth county ranks
alongside Mecklenburg both in total and
- ^ honlf rASDlirCftS. Dut-
in per inhabitant bank resources. Dur
ham is the only other county that
reaches above the five hundred dollar
mark in resources per inhabitant.
No banks of any sort are reported for
four counties: Camden, Graham, Pam
lico, and Tyrrell. A bank has recently
been established in Graham county.
There are twenty additional counties
whose bank resources fall below fifty
dollars per inhabitant. There are fifty-
six counties whose bank resources fall
below one hundred dollars per inhabitant.
For the most part these are the remote
rural counties of the Tidewater and
Mountain areas and a few rural Pied
mont and Coastal Plains counties. How
ever, a few very important agricultural
counties are found in the group, notably,
Robeson, Johnston, Nash, Harnett,
Rowan, Sampson, and Greene.
The counties that lead are of two
classes mainly: (1) The urban indus
trial counties such as Mecklenburg,
Forsyth, Durham, Guilford, etc., and
(2) the great cash-crop counties of the
Coastal Plains. A third group consists
of a few counties like New Hanover,
Pasquotank, Craven, Moore, and others
which are centers of trade and banking
for the surrounding' rural counties.
Usually these'hre counties with suf^enor
transportation facilities, and thus nucle
ating centers of population and trade.
Counties lacking industries, and'in which
agriculture is more or less self-sufficing,
make few- calls on banks for loans and
discounts, and consequently the bank
resources of such counties are extremely.
small. _ -
During the last decade or so North
Carolina has made large gains as a
banking state, mainly due to our indus
trial expansion. In 1914 our bank re
sources amounted to $163,114,436, or
only $64.90 per inhabitant. By 1926 re
sources had risen to $488,614,207, or
$181.76 per inhabitant. We are increas
ing our bank resources considerably more
rapidly than the nation as a whole. The
large increase in bank resources is the re
sult of North Carolina’s enormously in
creased productive powers, and evidence
that the state is finally beginning to
accumulate wealth. It is evidence that
we are rapidly changing from a self-
sufficing rural economy, to commercial,
industrial urban economy. A state
whose annual farm and factory output
trebles in ten years, from a half billion
dollars in 1914 to a billion and a half last
year, demands larger banking resources.
We Still Ranh Low
Rapid as has been our progress in the
accumulation of bank capital and
sources. North Carolina still ranks very
low among the states. In fact our
meager bank resources in contrast with |
our population, and value of farm and ,
factory products, is a fact hard to ex
plain. We rank fourteenth in popula
tion, with two and a half percent of the
nation’s total, and we rank fifteenth in
the value of farm and factory products,
but we possess less than eight-tenths
of one percent of the nation’s bank re
sources. Almost twice as many states
rank ahead of us in aggregate bank re
sources as rank ahead of us in the
annual value of primary and secondary
The' bank resources of the United
States are in excess of 62 billion dollars,
or $558 per inhabitant. The bank re
sources of North Carolina are eight-
tenths of one percent of the nation’s
total, and $181.76 per inhabitant. The
average bank resources per inhabitant
for the United States are two and a half
times the average for North Carolina.
Only three counties in North Carolina
rank ahead of the United States in
average bank resources. Only one state
in the South produces more wealth than
North Carolina, yet seven southern
states rank ahead of ours in bank
North Carolina has become a great
commercial state. The world of com
merce is founded on credit, and banks
are credit factories. The amazing thing
is not that we have developed «ur bank
ing, resources so rapidly of late years,
but that even today they are so small
in proportion to the wealth created an
nually within the state. It is safe to
predict that the present rapid growth
in bank resources will continue. We
need to build up bank resources ade
quate to supply the main credit needs
of an important and rapidly developing
agricultural and industrial state.
S. H. H., Jr.
KNOW NORTH CAROLINA
The Bureau of Industrial Tech
nology reports that the aggregate
motor car bill of North Carolina for
the year 1925 was approximately 240
million dollars. This includes every
expenditure of every sort connected
with motor cars, —investments in new
and second-hand cars, gas, oil, re
pairs, licenses, taxes, and so on. It
might easily be argued that a state ^
which can spend such a vast sum on
motor cars in one year is a rich state,
at least rich enough to afford what
it wants. It is interesting to note
just how much of a sum it is. It is
more than the gross income from the
three great crops of the state, cot
ton, tobacco, and corn, combined. It
exceeds the bonded debt of the state
government by more than a hundred
million dollars. It exceeds the bonded
debt of our one hundred counties and
our 219 cities and towns all combined.
It exceeds by a few millions the com
bined value of all public school prop
erty, all church property, all college
property, all eleemosynary institu
tions, plus the entire authorized
bonded debt of 85 million dollars for
BANK RESOURCES IN NORTH CAROLINA, 1914 TO 1925
287,746,807 ' 488,514,207*'
bank resources of $8,348,400.
pounds. In 1923 the United States im
ported from Europe 15,000,000 pounds
of milk and milk products, and of this
North Carolina took a generous share.
These are only a few of our importa-
“Annually, we are sending out of
North Carolina $220,000,000 for supplies
that could well be grown within our
own borders. With $220,000,000 added
to our present circulating money. North
Carolina would attract the attention of
other states, and her sons and daughters
would live more comfortably within her
borders than they can possibly do now
In 1923, $293,000,000 worth of cotton
and tobacco, the money crops, were
raised within the state and yet we sent
law that requires every person who is
caught violating the automobile laws or
who causes an accident to assure the
state of his or her ability to pay for
damage up to $11,000. The guilty per
son may give the state assurance in the
form of either insurance, a bond, or
collateral, A person who is notoriously
a bad risk, so that no insurance com
pany will take him, will have to provide
either bond or collateral. If he can’t
do that he is forbidden to drive.
This law has many advantages. It
puts no burden upon any one until there
is reason to suspect that he may en
danger life or property by his. driving.
Then it insists that he shall give an
assurance of responsibility that will
not only pay for the damage he may do
hut will certainly act as a deterrent
against reckless driving. And if in
spite of this deterrent he hurts some
one he will not only have to pay but in
all likelihood he will have to put up a
bond or collateral at his own expense
for future good behavior, for no insur
ance company will likely take on such
Even a temperamentally reckless per
son is likely to be much more careful
with $11,000 of hie own money in the
hands of the state subject to forfeit for
damages'if he has an accident,—World’s
TRUE PUBLIC SERVANTS
To me the outstanding and peculiar
strength of the Roman character lies in
the words ‘pietas’ and ‘gravitas. ’ These
were the foundations of a patriotism
which alone could carry the burden of
empire; a patriotism innate, a piotive
force of incaldilable power, yet some
thing at its best so holy that it was
never paraded, sought no reward, was
taken for granted, and had no single
word to express it. The highest gifts
devoted to public service were expected;
to dedicate and employ them for the
sake of the republic was merely your
duty. Aristides would not have been
called the Just in Rome, and in what
country in the ancient world but Rome
woulcya Fabricius have refused all re
wards, or a Cincinnatus have returned
to his farm? Again, a character founded
on pietas and gravitas had its roots in
truth, and I am proud to think tbat-the
English word has been^heid in no less
honor than the Roman.—Premier Stan
BANKS AND COMMUNITIES
On the evening of April 19, Miss Katie
Lindsey, of Durham, N. C., a student
in the University, discussed before the
North Carolina Club the question of
community programs for banks.
In the “good old days” there was an
idea that the only use for a bank was a
place to deposit money for safekeeping
and. drawing it out as needed. Changes
have come into that institution as into
ihany others, and community service
is valued as one of the chief aims of
Banks are called on now to do all
kinds of things. They finahce cus
tomers when they start in business and
advise with them as to the best means
of making the business a success, and
the larger banks have trust depart
ments to look after the estates of their
customers after they are gone.
Banks prosper only as the community
prospers and it behooves them to be
constantly on the lookout for new ways
in which to be useful to the community.
The banker by reason of his intimate
contact with the business of his cus
tomers and the confidence he usually
enjoys in his community can wield a
tremendous influence bn the agriculture
of the country. “Live at home” is the
slogan that many southern bankers are
trying to get farmers to adopt and
If we are to keep money at home
rather than send it to the north, later
to be borrowed at a high interest rate,
then we must have a better understand
ing between banker and farmer of con
ditions as they exist, and cooperation
will naturally follow. We must see
that farm labor is paid as high as indus
trial labor in a competitive market, and
that the farmer can afford to pay his
help. Heretofore, banks have not sought
out the farmer for a possible borrower
because he had no financial rating. The
way has been paved for better relations
and no one can respond better than the
W. A. Graham, Commissioner of Agri
culture, gave a few figur,es, quoted be
low, in ‘ ‘The Relation of the N. C. iianker
to the N. C. Farmer,” in the Tar Heel
Banker, April, 1924.
“North Carolina requires annnally
12 796,166 bushels of wheat, while pro
duction is only 6.038,000 bushels.
This leaves 6,767,165 bushels to be
imported. We used 330,000,000 pounds
of meat, while we produce about 256,-
000,000 pounds and import 76,000,000
BANK RESOURCES PER INHABITANT
In North Carolina in 1925
In the following table the counties are ranked according to the aggregate
of bank resources per inhabitant for the year 1926. The parallel column gives
^he aggregate of all bank resources in each county as reported by the Federal
out for supplies nearly half the bank j QQjnptroller of the Currency for April 6, 1926, and the State Corporation
deposits for the year.” i Commission for June 30, 1926. The study covers all national banks, all state
Miss Lindsey discussed resolutions ' trust companies, and industrial banks, as given in the official reports,
passed by the Banker and Farmer Con-. Aggregate bank resources in North Carolina in 1926 were $488,614,207, or
ference of the Fifth Federal District, 75per inhabitant. The aggregate in 1914 was $163,114,436, or $64.90 per
which recommended: inhabitant. ' .
1, Encouragement of loans by bankers / g total of bankjtesources $62,275,000,000, or $558.per inhabitant.
S. H. Hobbs, Jr.
Department of Rural Social-Economics, University of North Carolina
to bright and deserving young men and
women who wish to go to college to
study agriculture and home economics.
2. Promotion in a rational and con
servative way of the economic increase
in the productiveness of the soils so that
a larger unit of crop production may be
3. Encouragement of a proper system
of diversified farming in which farmers
will grow as far as practicable all the
iofid and feed crops necessary for feed
ing the .family and livestock, and
keep on the farms a sufficient quantity
of livestock to furnish the farm with
meat, milk, and butter.
4. Securing a county agent in every
The speaker then explained the com
munity program of a number of banks
in North Carolina and in other states.
Of especial interest was the program of
the First National Bank of Tarboro.
Miss Lindsey’s paper will appear in
full in the forthcoming North Carolina
Club Year-Book, which goes free to
North Carolinians who write for it in
Rank County Bank Res. Resources
(000 omitted) per Inhab.
1 Mecklenbtirg. ...$60,790 $690.30
2 New Hanover... 25,764 689.76
3 Forsyth; 49,261 660.00
4 Durham 23,003 610.46
6 Guilford 40,297 468.00
6 Pasquotank 7,643 443.60
7 Moore 7,176 312.46
8 Gaston 16,666 293.80
9 Wake 23,107 290.90
10 Vance 6,869 248.08
11 Buncombe 16,449 237.30
12 Edgecombe 9,469 236.45
13 Scotland 3,640 232.20
14 Cleveland 8,002 222.18
16 Henderson 4,026 212.00
16 Wilson 8,446 211.70
17 Chowan 2,167 203.40
18 Wayne 9,266 200.40
Rank County Bank Res. Resources
(000 omitted) per Inhab.
51 Robeson $6,224 $90.92
52 Johnston 4,592 88.80
53 Haywood 2,163 88.18
64 Polk 791 86.45
66 Nash 3,718 86.10
66 Duplin 2,678 83.80
57 Lee 1,181 83-60
68 Martin 1,779. 81.17
69 Watauga 1,086 78.86
60 Harnett 2,396..,, 78.60
61 Oheroke^ 1,086 76.95
62 Northampton... 1,764 74.71
THE RECKLESS DRIVER
Automobiles killed or wounded 630,000
people in the United States in 1924. In
1923 and 1924 there were four and a half
times as many American casualties
from automobiles as there were Ameri
can casualties in 1917 and 1918 in the
World War. Most of the people run
ning automobiles are not financially able
to pay for any serious damage to life or
property which they may do. And those
who can pay least are the least apt to
take insurance. In consequence, many
victims of automobile accidents have
little or no recourse. This has led to an
agitation for compulsory insurance in
many states. But this has many draw
backs. As the insurance companies will
not be able to select their risks they will
have to load the costs of the reckless
upon the careful drivers and the whole
principle of insurance will be Voided.
Moreover, compulsory insurance will
almost certainly result in agitation for
-state insurance at cheap rates.
The state of Connecticut has evolved
a much better plan. It has passed a
26 Granville ....
4,007 144 60
27 Lincoln 2,586 142.56
28 Beaufort 4,362 140.04
29 Cumberland 5,099 138.37
30 Pitt 6,603 133.10
31 Transylvania.... 1,313 130.03
32 Halifax 6,919 128.75
•33 Anson 3,776 128.65
34 Iredell 5.027 128.10
36 Surry 4.262 127.12
36 Davidson 4,726 126.75
37 Alamance 3,928 115.00
38 Rockingham 6,271 112.26
39 Person 2,193 112.10
40 Bertie 4,362 111.53
41 Franklin 2.959 '108.20
42 Orange 1.972 104.23
43 Stokes 2,127 102.66
44 Randolph 3,147 100.03
45 Montgomery 1,447..
46 Gates 1,046...
47 McDowell 1,768..
48 Burke 2,322...
49 Carteret 1,617..
60 Caldwell 1,947..
63 Union 2,687...
64 Mitchell 819...
65 Onslow 1,046...
66 Rowan 3,229...
67 Madison 1,306...
68 Davie 879...
69 Columbus 1,861...
70 Wilkes 1,946...
71 Macon 741...
72 Alexander 711..
73 Swain 980..
74 Yancey 869 63.66
76 Perquimans 696 63.28
\76 Stanly 1,602 63.17
77 Jackson 673 49.72
78 Sampson 1,856 48.66
79 Avery 490 46.33
80 Warren 1,014..: 45.95
81 Chatham 1,086 44.60
82 Ashe 910 41.90
83 Hyde 349 41 66
84 Greene 632 36.44
86 Hokfe 427 34.64
86 Bladen 661 32.44
87 Dare 168 32.20
88 Pender 440 29.73
89 Currituck 196 26,80
90 Yadkin 430 25.66
91 Alleghany 186 25.00
92 Jones 121 19.40
98 Clay 91..