You Can Take That To The Bank
How did a sleepy southern town named Charlotte grow to become the second largest banking center in the United States, second only to New York City? In short, there are two reasons. First, healthy free market competition drove the growth; and second, government got out of the way. Let me explain.
During the early days of this growth, Charlotte was home to two highly driven, competitive capitalists named Hugh McColl and Ed Crutchfield. Both believed Charlotte could be a true leader in the world of banking and finance. Hugh was leader of NationsBank (today’s Bank of America) and Ed was head of First Union (today’s Wells Fargo). Their commitment to Charlotte and the free market were the among the catalysts for growth in many sectors of our economy and brought us great changes to our skyline.
In the late 1990s, I worked in the Capital Management Group of First Union. A few years earlier, Bank of America had built the tallest building south of Philadelphia and east of Houston. It stands at the corner of Trade and Tryon in Charlotte. Rumors began flying that Ed Crutchfield, CEO of First Union, was going to build a taller building to one-up his nemesis, Hugh McColl of Bank of America up the street. But Ed’s building was never built.
Their good nature ribbing about the size of buildings aside, these two captains of industry, fueled by their great competitive spirit, grew their own companies and brought growth,
expansion and an increase in jobs not experienced in many other parts of the country. Today, Charlotte has matured into a global player, attracting industries far beyond banking. And speaking of banking, we certainly may overtake New York City to become the largest banking center in the nation.
With all respect and deference to the great leaders of Charlotte industry over the years, there was another important reason Charlotte has succeeded. Government got out of the way. Prior to 1985 banks were only allowed to do business within their own state. There were no interstate banks. The Federal government and most States had enacted strict and cumbersome regulations, but the North Carolina General Assembly made banking within our State relatively easy without unnecessary regulations. As a result, our banks enjoyed considerable experience in merging and acquiring assets within the State. This allowed our banks to be better capitalized and more competitive than banks in other States.
So, in 1985, when Federal interstate banking laws were repealed, NC banks were soon acquiring banks in Florida, Texas and other locations. Chartering new banks was easier too. It’s amazing what potential can be realized when government gets out of the way! Today, banking in Charlotte currently supports over 70,000 jobs, paying the citizens of our metro area approximately $4.6 Billion in wages and benefits. We have an international airport that is 6th in the world in passengers and people from all over are moving here to make their way in our prosperous region.
America became the freest and wealthiest nation on earth because we were founded with a commitment to God-given human rights and liberty, free markets and limited government. When we stick to that formula, we prosper as no other people. When government deviates by meddling, we experience setbacks and hardships. North Carolina has been a shining example of what it means to be a land of opportunity for anyone with a dream, passion and commitment to hard work.
But if we forget what made us great, if we continue to allow government at all levels to slowly usurp our freedoms and liberties, we will be destined to experience the destructive forces wreaking havoc in places like New York and California. States like that are rapidly losing business and citizens to places like North Carolina. Our people need to stand our ground and insist on liberty and limited government so we can continue in a quality of life and prosperity that makes others want to move here.
When I get to Raleigh as your next State Senator, I will evaluate every new bill that comes up for a vote by applying what I call the “LL&P Test.” I will examine each piece of legislation to determine if it will inhibit anyone’s Life, Liberty, or Pursuit of Happiness. If so, we as legislators are bound to vote no. I hope the next session of the General Assembly will be filled with like-minded folks to continue making North Carolina the greatest state in the nation.
"We are a humane and generous people and we accept without reservation our need to help the aged, disable and those unfortunates who, through no fault of their own, must depend on their fellow man. But we are not going to perpetuate poverty by substituting a government handout for a paycheck. There is no humanity or charity in destroying self-reliance, dignity, and self respect-- the very substance of moral fiber."
-President Ronald W. Reagan
