Richmond Indiana palladium. [volume] (Richmond, Ind.) 1837-1839, 1837-07-01
From the Richmond Wing.


BANK SECRECY. NEUTRALITY-SUSPICIOUS..
A gentleman in whose Judgment, sagacity
and experience, we have great confidence, sub
mits a suggestion for the future management Of
the banks, which is entitled to great cOnsidera-
ton. The suggestion is, that all secrecy should
be entirely removed from the operations of the
banks--that monthly statement Of evc cry trans
action should DC published and hung up in the
banking room.
The proposition is at first calculated to startle
those who have been accustomed TO consider Sc
crecy as essential to successful banking. But
we think upon further consideration, it will he
held that secrecy is not only not necessary, but
that the most extensive publicity to every DIS
count would exert the NEST salutary influence,
and prove the most wholesome check over the
banks yet devised. II would beyond doubt be q
thorough preventive to fayoritism and loans with
ont adequate security. Had it been in force here
toforc. it would have prevented the wild sPccula-
tions to which the banks have been auxiliary-it
would have prevented the ofiice-holders and favor
tics of the Pets from obtainng the means to spec
u!ate in public lands, which more than any other
one cause has produced the bankruptcy of the
government, in addition to the loss of public do
main. The adoption of the suggestion now would
show who have had undue accommodations at the
banks, and who have engaged in these will and
ruinous spcculations. 1t is due to the people that
this exposure should be madc-it is due to the
administration, which lies under strong suspicious
of having profited by its connection with the Pet
Banks-that the Indebtedness Of every indiv idu-
al past and present, to those institutions, and to
every ether in tho country, should be laid open
t. tho country.
We take the liberty of making an extract from
the letter OF our respondent though not intend
ed for the public:
at has long been a clvOritc maxim with me,
that instead of that inviolablc secrecy in regard
to the accounts Of indivi luals, list monthly
should be published and hung up in the banking
room (under the penalty Of the pcnitcntiary for
designed falsiiicaion) Of the Indebtedness ofeach
indiv idual. This is the real and only guarantee
to a faithful administration. Favoritism and
knavery could not be practiscd, while the rod OF
is thus suspended over the heads oft
directors, and forthwith t. be applied. All dis
tant accountabilites are idlc.-Wcll, the banks
arc now in a condition to be asking favOrs of the
Legislature. Let the reasonable applications be
granted on the above condition.; and then we
shall obtain the desired information Of the practis
ed abuses heretofore, and guard against the rope
tition hereafter. The objection urged against
his plan, is, that no ono will deal with the banks,
4 their loans to be made public. This, TO me,
seems frivolous. In the country, when We bor-
.ow, we usually give lien, which is published
It the Court House door. never knew a loan
'clused on that account. man who borrows on
y what the state of his affairs would justify,
arcs nothing about the publicity of the fact-it
$ only those who want to borrow moro, that
read it, and it is precisely those against whom |
wish to guard, and especially to prevent the banks
rom being converted into political engines, the |
nightly instruments of corruption Ii was char |
cd that the State Bank of Tcnncsse appropriated
Is funds SO as to become DUuhss.p.,
lection of Gen. Jackson. What seems to con- |
rm it, is, that the Legislature Of that State to
his day, have never pressed an inquiry into the
ause Of its failure. With my project this would
OF have haPpcned-and in no bank could it oc
ur again"