The Massachusetts spy, and Worcester County advertiser. [volume] ([Worcester, Mass.]) 1825-1831, 1828-12-10
WORCESTER:
WEDNESDAY, DEC. 10, 1928.

TRADE OF BosToN. We have before advert
ed to the manner in which the allied bank sys-
tenn affects the trade of Boston unfavorably, by
inducing the directors of country banks to with.
hold discounts from those who trade there
We come now to speak of the more important
consequences which are produced on the pros
perity of that place, by the influence which the
system has, both upon the feelings and interests
OF individuals, to give trade diffe rent turn
In many parts of the country, especially
among the manufacturing population, nearly all
the capitalists and men of business are interest
ed in banks, either as stockholders or custom
ers. In whichever of these relations they stand
the operation of the allied system is found to
affect their interests most injuriously, and it is
looked upon by them with those feelings which
are always excited by sense of oppression, for
which there exists no adequate cause, except
in the self interest of the oppressor They are
therefore melted by two-fold motive, to exert
whatever influence they have, to turn the course
of trade from Boston, by their interest, as a
measure that is remedial, and by their injured
feelings, as one chat is retaliatory.
HOS0 WHO nave not ndQ occasion TO exam
| inc the subject are not aware of the extent of
the evil complained of. In the first place eve
ry country banlt 30 required make perma-
nent deposit at the Suffolk bank, for which it
receives no interest," the amount of which is,
we believe, in no instance, less than three thou
sand dollars, and is increased beyond that sum
according to the capital and business of the
bank. 1t will probably average not less than
four thousand dollars. In addition to this, they
are obliged from time to time to deposit, in
Boston, funds to such an amount that there
will be sufficient, at all times, to redeem their
bills as fast as they come in. The amount thus
deposited cannot reasonably be estimated on an
average al less than four thousand dollars more,
making for each bank eight thousand dollars,
and an aggregate, allowing sixty banks to have
become tributary, of near HALF A MILLION of
dollars. This enormous tribute is so much cap
ital withdrawn from the country and lost to it
for all the purposes of business and of income,
and added, without any equivalent, to the bust
ness capital Of the Boston banks. The alb
straction of this capital would alone materially
property, in the country, especially, at a time
when capital is as valuable, and as much need
ed, as it now is But the evil does not stop
here Every bank finds that its bills, almost as
soon as issued, are picked up by other banks
and carried directly to Boston for redemption,
while they, in their turn, are doing the same by
the bills of all others. Thus further amount
of capital is constantly on the road to Boston,
and therefore useless and unproductive. The
banks become the brokers of the Suffolk bank,
and employ their time and capitals in taking the
bills of each other out of circulation, to their own
mutual injury, and to the injury of every one
else except the uiiivd by unIs nIvunS
nearly all the advantages of the banking sys-
tenn as legitimately conducted, are lost to the
community. The circulating medium is reduc-
ed about to the amount it would be if paper
was wholly withdrawn and specie substituted
and the banks are unable to afford but little
more accommodation to the public than if they
were mere loan offices, required to make all
their discounts in specie, without the power of
issuing bills.
Other evils grow out of this system, to which
we have not leisure now to advert Enough
has been shown to account for general dispo-
sition, which certainly does prevail to consid-
cradle extent, to divert trade, as much as posi-
BILE, from Boston. This feeling continually
gains strength, and will, most assuredy, pro-
duce a great effect When the people of Bos-
ton see it and feel it, let them not say that it
was not foretold. Great as the influence of
the capital of State-street may be over the
business of Boston, it cannot control that of the
whole country.