The Massachusetts spy, and Worcester County advertiser. [volume] ([Worcester, Mass.]) 1825-1831, 1829-01-07
WORCESTER:
WEDNESDAY, JAN. 7, 1890.

$50 far is the srstem Of operations carried on
h. these 1.-THE allied] banks froui being spec.
u'aiinn -on the necessities of the community"
or an attempt to = conrol the operations" of
other banks. that. in our npininn, made M from
the best in!ormliipn we have been able 10 OBJ
tain. it is a,s'Ire patriotic, public spirited
and pei lpctly i,ISiifi1b!r. We have some rpa-
sons for believing that mnre than country
bank. (a1d perhaps some in the neiyhbprh0od Of
Wprcester) Is indebted TO this system for ifs
present existence in the catalogue of solvent
banks II would not he impossible. we appre
hend to sh Nv. from official documents and un.
doubted testimony. Tint. during the rccert tar
md in State-sirePt." loans were made nv the
Globe and Suffolk banks 10 several cnun'rv
hanks To enable them tn continue their banking
rpera.Ions and keen their doors omen |, would
he we'll Fl thN "alIied banks 20 publish occa-
sinnallv a statement of the sums lent In banks
in the country. aud the amount IF bills from
country hanks. which dnriug times "f scarcity.
they have on hand beyond the depnsite required
and which if sent h ,me for redemption, would
produce little more embarrassment, than fhe
directors would wish to suffer There are per-
hans. too, snmr hanks IN State-street. whose
last return would have eXl hitPd beurardlv
account Of e,nptv vaults. if thew had not hern
accommodated with few thousands from the
Srfrlk. On the whole we are inclined tn &c
heliee, that IT, at the approaching session nf tlr
legislature, a few hank directors and CLERKS
sycre summoned before that body and sworn TO
tel the whole truth. II few well-d,rrcted inter
rngatnries would bring ont an exnnsition Of
proceedings which some Of the gentlemen who
keen uu the eternal clamor against Tho p" allied
hanks" would he very willing to have buried
in obi vion.''
The foregoing verv extraordinary remarks
are from the BOSTON Courier and are part of
an article elected hv nnr remarks last week. on
the subject of renewing Rank Charters Wheih-
er the course of the allied banks is pa rinfic
public sriri ed. and jus'ifable." we do not pur-
pose TO inquire; our opinion has already
been expressed, and we are satisfied il is in ac-
cNdance with that of the great body Of the
community. But we think the public are emit.
tied tn know on what authority the above charg-
es are made against " more than one country
bank" If il be true that any bank has board
Of directors, so incompetent to the correct dis.
charge nf their duties that the bank is saved
from insolvency Only by the operation of the
allied bank system, then should it be known.
that their places may be supplied by those who
more cap BILE. I'ut if the danger arises
from the dishonesty, rather than the incompe-
teEcy, of the hoard. let the proofs be ahdurcd.
and the culprts dragged forth TO the light Of
the day, and held up to the scorn and dpipsia-
ton of the community lfthey have DISPOSE
tinn to dciTaud the pubic, the allied bank sys-
TEN viii not prev ent il. for, If is fact suscep-
tible of demonsli alton, that. where a board of
directors are disposed to make bank insolvent.
and to de!raud the public, that system affolds
facilities for it which they otherwise wonld not
possess Is it true, then, that there are bank
ing institutions amongst US, that are of n dam
ger"us character, and so nearly insnlvent that
they are indebted for their present existence To
abe operation Of the allied bank system? Is il
true, too, that the allied banks, knowing the
standing OF such institutions, have furnished
them with the means of sustaining their credit
Till they can have the opportunity of defraudng
the community TO greater extent than at the
present time that. having the proof of this in
solve ncy. they have withheld il from the pub
lie, and neglected TO pu, them on their guard
For such is the fair inference to be drawn from
this extract. Deeply involved, this would
prove them TO be. in great improperly of con-
duct, To give it lis mildeSt epithet we should
suppose they might stop there. without the at
tempt TO shlke public confidence in all our
banking institutions at such time as this, ny
authnriz ng paragraph az the character The
above. Why. we would ask. is such miss lc
hurled thus indiscriminately into the crowd
where the chances are creates, that il NAV fall
with deadly force upon the innocent : Although
the article in the Courier warrants all the in
feTenccs have Drawn, and wears upon lis
face indications of being authorized by officers
Of the allied banks, we are compelled, in Justice
to ourselves, To say. that we do not believe such
To be the fact, but adopt, as the most charita-
BILE. as well as most reasonable. conclusion, the
opinion that the editor Of the Courier has been
nisled, by the splenetic accusations of some
oficious intcrmeddIer into the publication Of
tie above paragraph, without sufficient rcflec.
tion on lis tendency.
AS t. the suhjeet Of lonns. which, it is said,
have been made To country banks we suspect
II Is susceptible of an explanation. which would
present an entirely different aspect from that,
which it wears in The Courier We have made
no particular inquiries at the present time, but.
from knowledge heretofore casually obtained.
we apprehend this to be The true state of the
case. considerable portion of the discounts.
made by some of tbs country hanks. is IN city
notes amt acc"ptances. These are forwarded
to some Of the Boston banks for collection, and
an arrangement is generally entered INTO, by
which the bank in Boston agrees to discount
them for the country bank in case of their need.
lie ha
qnen'ly induced to discount more of such paper