Local Bankers .Think Court's
- Decision Fair To Small Banks
--
Norfolk Bankers And Business Interests, Resenting The Charge
Of Exchange On North Carolina Banks, Hare Adopted
Wrong Attitude; Moans Life Of Many Smaller Banks,
* Says Cashier Of Local Institution, Who Answers
Recent Article Appearing in
Newspapers
Norfolk, Virginia, continues to kick against alleged dis
criminations in favor of North Carolina. First, it was freight
rates, and now it is the collection of exchange by North Caro
lina State banks, legalized by a recent decision of the United
/ States Supreme Court. This city has for years enjoydd a heavy
patronage from this territory, both in the banking business and
in its distribution of wholesale and retail merchandise. This
State has given it much of its business and to this day continues
to spend much money with concerns of Norfolk.
Now, since this State has begun to enjoy a freight rate
equally favorable to Virginia, and since the highest tribunal of
justice in this country has said Northh Garolina banks have a
right to make a reasonable exchange charge against foreign
banks, these business interests and bankers are vigorously as
sailing the conditions that work for North Carolina.
& An article appearing in the Virginian-f4lot of last week
date line gives some idea of the attitude being taken by Norfolk
bankers and business men. Local bank officers do not believe
this article fairly represents the situation, ^nd have mildly re
sented the suggestion of unfairness alleged by the Norfolk men.
The belief is prevalent here that the life and success of the state
banks is dependent upon a small exchange charge.
Norfolk's Position
' The following la an item that ap
peared in the Norfolk papers:
Norfolk business, which has large
connections in North Carolina, South
Carolina and other Southern States,
will be compelled to assume a con
siderable burden as result of the
Supreme Court ruling which upholds
the country banks of North Carolina
and Georgia in their stand against
clearance of checks at their par
0 value, according to A. B. Schwarz
kopf, manager of the Norfolk-Ports
mouth Clearing House Association.
The effect of this ruling, he said, has
a very direct and important bearing
on Norfolk business.
Several years ago the banks in
North Carolina not affiliated with
the Federal Reserve system began
the practice of charging exchange
for clearance of checks. A Norfolk
business concern selling goods to a
North Carolina customer, in ,the
great majority of cases, v?s forced
to have i deducted from his remit
tance the exchange charge. The
practice became so irksome that
some Arms iin this ciity refused to
accept payment by checks on banks
A which required this service charge.
? The decision of the Supreme Court
perpetuates this practice, and bank
ers here feel that the outlook is for
continuance of the exchange charge
unless remedial legislation can ' be
obtained from Congress by the Fed
eral Reserve System,
t ' The charge for clearing checks al
lowed by he North Carolina Legis
lature is a maximum of 1$ cents
per |100. The minimum charge is
ten cents, according to Norfolk
bankers.
? Under the system enforced by the
Supreme Const decision from three
to five days is added to the time
?. required for a bank in Norfolk to
realise on checks from North Caro
lina drawn on the banks affected by
this ruling. In addition to this de
lay, the exchange fee must be de
ducted, placing the additional loss on
business here.
On checks cleared directly through
the Federal Reserve Bank at Rich
mond from three to four days must
elapse before 'the bank in Norfolk
gets its money. On North Carolina
Checks, this time is almost doubled,
because checks must be sent to the
'respective North Carolina banks
After passing through the Clearing
House here. The bank here runs the
additional risk of loss of these checks
in the mail.
Mr. Schwarzkopf said yesterday
that the average man in business does
not realize fully the extent to which
this practice operates in impeding
progressive business operation. He
' Admitted that there appears to be
nothing which the banks can do .to
remedy the situation now.
What Ahoakie Banker* Say
y; V. D. Strickland, cashier of the
Farmers-Atlantic Bank, has issued
the following statement, Showing the
Attitude taken by the local bankers:
Only a few brief years ago, ex
Change charges upon checks drawn
npon one bank and presented to
another bank for payment were prac-1
tically universal throughout the
lSkountry with banks not a member of
Federal Reserve System. These
charges whch individually were noiqi-1
nal, were not A burden upon any in
dividual class of business They did
however, mean a great deal to
the small bank in a community which
is the very heart of progress of any
community, and by this little service
charge which is only just and right j
these banks serving the Unancisl,
*needs of the community were enabled
? V live.
F - '
| Such a just and reasonable charge
of exchange was quite customary up
to comparatively recent years. The
centralisation of our country's bank
ing resources through the agency of
the Federal Reserve System brought
about a demand from the larger city
banks for clearing of checks at
par, a proceedure which discriminated
against small banks but worthy ones.
It took away'so much of the revenue
they had a right to expect, that in
some instances the income of such
banks located in the smaller com
munities was reduced to a figure be
low an equitable return upon their
investment of capital and managerial
abilty.
Two years ago, in the fall of 1920,
the Federal Reserve Bank of Rich
mond, Va., gave notice to the state
banks of North Carolina not affiliated
with them, that on November 15th,
1920 they were going to require them
to remit at par to them, and give them
the kind of exchange they wanted,
whether it was convenient to them or
I not.
The state banks of North Carolina
believing: it was justice and right for
them to be compensated for this ser
vice. fought their actions and their
way of making demands and I be
lieve by actual experience if the leg
islature of North Carolina had not
passed some law to protect these
banks, that they woul have closed the
majorty banks at that time, undfer the
strain they were already operating
I also know by experience that
they held up checks on banks for sev
eral days and sent agents to present
them at the windows of the banks,
and demand currency for the checks
and the average bank did not keep
sufficient money to pay a large bunch
of checks like that, and that meant
if they did not have the state law to
protect them, that the checks would
have been protested for non-payment
which would cause the bank unlimited
damage to them and their customers.
North Carolina fought for what
was right and won. There is no rea
son why Norfolk business or any '
other business should be subsided by
the country bunkers paying the
freight. That such a demand was
both unjust and uneconomic is shown
clearly by the coercon and force nec
essary to put the system in opera
tion. No wonder the small com
munity banks of North Carolina stood
united as one against such an en
croachment upon their rights, a posi
tion under the circumstances which
the recent decision of the Supreme
Court proves indisputably to be both
just and 'fair, and the legislature of ,
North Carolina also saw that it was '
just and fair.
As a bank serving the broader fi- 1
nancial interests of our community,
the institution of which I am cashier 1
has always been glad to see such
business go to Norfolk as could best
be handled there. I feel confident
that the leading merchants of Nor
folk appreciate the shopping habits of
our North Carolina pepole in this re
quest and do not as a group object to
the exchange charges upon North
Carolina checks representing money
spent in their city for their merchan
dise and goods.
/faching feet
ygtE!1/
Sabaa-lbo to tbo H?nUd; to it now.
WINTON NEWS
Mrs. P. H. Taylor and two sons,
Pat and Phillip, visited relatives in
Elisabeth City and Norfolk from Sat
urday until Tuesday.
Jlessrs. John Itoger Griffin and
Jim Bolton were visitors in town Sat
urday evening.
Mr. and Mrs. H. C. Holloman and
daughter, Lillian, were the guests of
their mother, Mrs. Lucy Holloman in
HarrellsviUe, Sunday.
Attorney E. R. Tyler from Roxo
bel and Mr. Grady Harrington from
Lewiston were business visitors in
town Monday.' .
[ Miss Minta Banks, Messrs. Thad A.
Eure and Ernest Banks attended a
social at the home of Misses May
and Gertrude Snipes .in Menola on
Friday evening given in honor of
their house guest, Miss Council from
Chapel Hill.
Mr. J. R. Vann from Suffolk speijt
the week-end at home with his father,
Mr. H. B- Vann.
Mrs. John R. Jordan and son, John
Richard, who have been at Protestant
Hospital in Norfolk for the past two
weeks, returned home Friday after
noon.
Mr. J. Fred Stimson spent from
Friday until Monday in Union.
Mrs. Dallas L. Dilday from Ports
mouth Is visiting her mother, Mrs. J.
E. Brady.
Mrs. Mollie Shaw, who has been
spending some time with her daugh
ter, Mrs.' D." R. Britton at Colerain,
returned to her home Sunday.
Messrs. David Day and Robert
Britton from Murfreeeboro were visi
tors in town Sunday afternoon.
Miss Willie Boone, who has been
making her home with her sister, Mrs.
B. E. Copeland in Ahoskie, has re
turned to make her home with Mrs.
Bettie Majette.
Mr. W. H. Howell and son, Mr.
Herman Howell and Mr. Cotton from
Franklin, Va., visited their uncle, Mr.
Frank Hines Sunday afternoon.
Misses Mary Brady and Sue Brett,
who attended the B. Y. P. U. conven
tion at High Point last week, return
ed to their homes here Friday morn
ing.
Mr. Glenn Griffin st>ent the week
end in Woodland with his parents, Mr.
and Mrs. J. P. Griffith.
Mr. J. A. Eley and family visited
Mr. and Mrs. W. M. Eley, Sunday
afternoon.
Miss Myrtle Swindell attended the
Betterment meeting at Murfreesboro
Monday afternoon.
Mr. and Mrs. Arnold Hines from
near Gates visited relatives in town
Friday.
Mr. E. L. Banks left Tuesday after
noon for Wrightsville Beach to at
tend the Ford dealers' convention
which is in session there this week.
Mr. and Mrs. D. R. Britton from
Colerain were the guests of Mr. and
Mrs. J. A. Shaw Sunday afternoon.
Little Miss Virginia Bridger from
near Mapelton visited her friend, Miss
Elizabeth Banks Monday afternoon.
Messrs. Jesse Brown and Harvey
Vinson were visitors in town Mon
day.
Mrs. Maude Newsome and son,
James, left Saturday for Hamlet, N.
C., to visit the former's mother.
Mr. Jim Eure was a callerNn Eure
Sunday evening.
Mr. and Mrs. W. A. McGlohon
from Murfreesboro, were the guests
of Mr. and Mrs. D. R. McGlohon
Tuesday afternoon.
Mr. and Mrs. H. C. Britt attended
the burial of the former's sister, Mrs.
Julia Weston at Reynoldson, Satur
day afternoon.
Messrs. T. M. Condon and J. W.
Faison were callers in Menola Sun
day evening.
Mrs. Lindsey M. Silvester from
Norfolk is visiting'her neice, Mrs. H.
C. Faison.
Miss Joyce Hinea from near Gates
visited Misses Pearle and Gladys Jen
kins last Friday and Saturday.
Mr. and Mrs. M. L. Spiney from
Sunbury visited Mr. and Mrs. H. C.
Holloman last Saturday.
Mr. Ben Williams from near Ahos
kie is visiting Mr. Richard McGlohon.
Mrs. W. H. Lassiter and children
returned home Saturday from Nor
folk where they have been visiting
relatives. <
RED PEPPER FOR II
RHEHMTIC PAIN
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When you are suffering so you can
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Just as soon as you apply Red Pepper
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through and through. Pain and sore
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Ask any good druggist for a jar of
Rowles Red Pepper Rub. Be rare to
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?
LEGAL NOTICE
State of North Carolina,
Department of State.
CERTIFICATE OF DISSOLUTION
To All Whom These Present* May
Come?Greeting:;
Whereas, It appears to my satisfac
tion, by duly authenticated record of
the proceedings for the voluntary dis
solution thereof by the unanimous
consent of all the stockholders, de
posited in my office, that the J. A.
ELEY ELECTRIC, PLUMBING A
HEATING COMPANY, a corporation
of this State, whose principal office is
situated in the town of AHOSKIE,
County of HERTFORD, State of
North Carolina (J. A. Eley being the
agsnt therein and in charge thereof,
has complied with the requiremepts
upon whom process may be served),
of Chapter 22, Consolidated Statutes,
entitled "Corporations," preliminary
to the issuihg of this Certificate of
Dissolution:
Now, Therefore, I, W. N. Everett,
Secretary of the State of North Caro
lina, do hereby certify that the said
corporation did, on the 8th day of
June, 1928, file jn my office a duly
executed and attested consent in
writing to the dissolution of said cor
poration,- executed by all the stock
holders thereof, which said consent
and the record of the proceedings
aforsesaid are now on file in my office
as provided by law.
? In testimony whereof, I have Jiere-!
to set my hand and affixed my official
seal at Raleigh, this 8th day of June, |
A. D., 1923.
W. N. EVERETT,
Secretary of State, i
ROSWELL C. BRIDGER, Attorney'
for J. A. Eley Electric, Plumbing
and Heating Co. 6-15-23-4t.
ADMINISTRATOR'S NOTICE
/
Having qualified as administrator
of the estate of Robert Holloman, de
ceased, late of Hertford ? County,
North Carolina, this is to notify all
persons holding claims against the
said estate to exhibit them to the
ftndersigned at Ahoskie, N. C., for
payment, on or before the 24th day of
May, 1924, or this notice will be
pleaded in bar of their recovery. All
persons indebted to said estate will
please make immediate payment
This 24th day <Jf May, 1924.
A. W. HOLLOMAN, Administrator.
Ahoskie, N. C. 5-26-23-6t.
1^????a??????
Many big features hare been added
to the program of the Farmers Con
vention at the State Collage, July
31, August 2. Mark these dates on
your calendar and prepare io attend.
FILLERS
When a bird is killed, bugs rejoice.
There s a cropping time in the
races of men, as in the fruits of the
held; and sometimes, if the stock be
good, there springs up for a time a
succession of splendid men; and then
comes a period of barrennesa.?Aris
tole.
? *
Don't forget that your copy of ax
tension circular 187 telling how to
dust cotton for control of the boll
weevil is waiting for you to write to
the Editor, Extension Service, Ral
eigh and ask for It.
For the purpose of compiling a
folder of an "Historic and Industrial
Tour of the Carolines," C. C. Arm
strong, of Gastonia, president of the
Carolina Motor Club, has appointed
a commitee from the two states. Mrs.
Edith Vanderbilt i? chairman of the
committee.
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