The Rhode-Island Republican. [volume] (Newport, R.I.) 1809-1841, 1837-06-07


period) the people took out Of The banks, on
interest, less money than they had put n,
by SI70,569. Ia 1888 they used more
than they put in by SG7 .473. Ia 1884, the
great panic year, The people used less than
they pa, in by S976,733. In 1885, the
time Of great plenty aud speculation, the
people used more than they put 10 by 1919,
09S.
The people, therefore, had out of the
anks in the plentiful year Of 1885, s3l9,-
O95 more than they puI in. And in the
great panic Of the previous year, 1884,
they had out Of the banks S976, 733 less
than they had put in; which made differ
ence Of 81 ,295 ,S3l which sum would nv
erage Sl3 each to every man woman and
child in the state Is This not enough to
account for the plenty Of tie one-and the
6arrcnness of the other period?
Taking the four years together, the people
had in the banks, an average of over 1870
thousand dollars more than they took out
on interest. 1t also appears that in the
years of prosperity, the banks let out a little
more than the people had put in their hands;
but in the years Of distress, the banks let out
much less to the people, than the money
the people had put in their hands.
Since the year 1885, we believe no bank
returns have bccn published nor have we
the means Of asccrtaining the present state
of their loansi but from the best Judgment
we can form, their curtailments must be
very great at this time, probably an average
OF at least 10 per cent of The usual loans;
and If so, the people are now deprived of the
use Of their own money to the amount of.at
least one million of dollars, by having com
United tito the custody of banks. This sum,
withheld, is amply sufficient to account for
all the present enbarassments under which
the trade aud industry of the people of this
state now labor
We will now take brief glance at III,
currency of one year--say 1884
Bills in circulation 81 25l 435
From which deduct the bills ofother
banks held by the several banks
and of course not in the hands of
the people 2Gl 100
Leaves this amount in the hands of
the people S99o326
As we may fairly calculate that at
least one third of this amount is in
circulation out of the bounds of the
State over and above the bills of 9th
er States in circulation here, we deduct $50 los
In the hands of the people of this State $500 2l8
The banks had in their vaults at that time
in specie, as per report 4674O7
Sl92,s
The people gained in circulation by nll
the banks only 1923 dollars over the a.
mount of specie in their vaults; and when
we consider that every possible means is
taken by the banks to force out us large a
circulation as possible, we may fairly con-
clude that the whole necessary and natural
circulation might be supplied by the S467,-
4O7 dollars of specie, in addition to the spc-
Gle then aud before, already in the hands
Of the people. And when we recall again
to our recollection, that the people lose the
use, on an average, of over $l00, 900 of their
own money by putting it IN bank stock and
deposnes, we may fairly conclude that the
banking system for their business opera
tons, AS has been generally supposed.
These remarks and calculations, recol-
lect, are on Rhode-Island banking and II.
Island currency and will not answer for
other states, where banks keep bills in cir
culaton TO greater ar1onnt than their
capital stock. In such states the trading
capital is, doubtless, much increased in a.
mount-bm they are nor trying the erper-
imeat, as to its y0iuei
That the banks in II. Island have enough
lills in circulation, and little too much, is
fully evidenced by their not being able to re-
deem them according to their legal obliga-
tion. WE THE PEOPLE.