Banking In Illinois

Illinois is a coinmomvealth of manj small towns, in which, mimerically the private banking institutions predomínate. Nor does the suppositior that business men prefer to deal with incorporated banks seem to check the progress of private banking enterprise in that state. In 1890 there were 48E such institutions in operation; in 189-1 there were no less than 500, exhibiting a ratio of increase which is not equaled by the growth of the national or the state banks. The following table gives the numerical position of the three classes of banks at two periods: 1890. 1895. No. of No. of Banks. Banks. National banks 196 218 State banks 90 131 Private banks 485 590 The field for the national banking ' system is comparatively limited, owing j to certain well known restrictions imposed upon theassociations organizing under It. In the country districts the bankable coliateral is largely compesed of lantl securities, an asset discountenanced by the federal banking act. Here a eautious banker operating at his discretion, and comparatively unlimited as to the nature of the securities in whieh he may deal, secures an opportunity for rendering an efficiënt service to the community. As affectIng the RYailability of such investments in Illinois, it is of interest to note that real e.ítate security is about to be relieved of many of the disabling legal burdens which interfere with its easy transference. The legislatura of Illinois recently passed an act providing for the introducción of what is generally known as tiie Torrens system. Under this system titles to real estáte are guaranteed by the state, so that once the title is established the instument of proprletorship many be transferred with the facility of a negotiable note. Thus titles to real estáte become bankable assets of greater effectiveness than that class of securities has ever enjoyed. The American Banker years ago urged the general introduction of the Torrens system for the particular reason that it turned a cumberstono i security into a quick asset of unquestioned validity, and the results of the experiment now to be tried in Illinois will receive the closest attention of all who aro interested in freeing the material of credit froni obsolete legal eomplexities,