True American. [volume] (New Orleans [La.]) 1835-18??, 1839-01-23
THE TRUE AMERICAN.
FAIT3yUk AND BOLD.
N Il w OR l. # A N =:
WEDNESDAY, JANUARY es. 1899.
RDDTED nv JOHN Gs1BaOl


WEDNESDAY, JANUARY 23. 1889.
Free Banking, No Sin our last we endeavored
to show the propriety and expediency OF opening
the door 10 free banking. 1t would confer the
privilege Of organizing institutions on the general
or ,rus. principle, without. personal
liability. The risk incurred will net be beyond
the amount Of subscription. If each individual
stock holder were made liableas he is by ordin:
AIRY partnership, none would i"ves. Their property
bu, the wealthy and those who might be anxious
to attend personally to the business. The great.
ohjec, Of organization, is credit. To make interes,
Oh capiial. and nrn6i "'.A;' - - =. i-fe--4
must be united, and they are 50 under the prn-
posed system. By il, the capital Of the country
which would be inactive, is rendered active and
operative. In.eres. can be made on VIVA, an ind.
vidual 10 worth, and not be confined 10 the c,ual
cash capital which he has been able to WELD.
The inelgeo, letter from which We quoted 10
Number 4, furnishes some interesting rcaect ions
opposite 10 this par, Of our subject.
To establish D fixed and undoubted credi, re-
qures an investment Of capital in class OF sec..
rites in which capitalists have the most conf
dence and which can be made matter Of record
M securities have yet been found which pay a.
large an in,eres, OF one universally popular as
bonds secured by mortgage on good produ
real estate. BY investing capital in this manner
essshsh no new principle. All our Fire and
Marine Insurance companies are required by their
charters to keep their capital invested in bonds
and mortgages bearing interest. Upon this CO pi,al,
thus invested and pledged, these companies OBJ
tain credit and effect insnrances. When the pre-.
MUM f,r insurance exceeds the losses and expense
it becomes profit, and being added 10 the intsrss
increases 'he dvaehs. II me cseo't OF me tnstu-
t'"n Is very e"oo, may ena'ge . h'sn premium,
ana increase "s pronts as II pe''cc's lis credits.
Lie assurances aho trust companies ore based
uP"" 'ne sa"e p.'"''P'e' i"o c"P""' 10 'nVes'eo
IN oon's secured ny mol'gages, bearing interest
ana thus offers recorded pledge tor the fulfil
meht OF all me engagements Of the company Of
me company III consequence "t mus investing
tns caPha'' 'hese trnst companies are able to OBJ
'al" money o" men oonas: or eeft'hcafee OF deP".
st, drawing Ger cent l"teres. and having 80
years 10 run. Ah's general banking law permits
organization, which will produce a like credit.
90 nct mean 20 say t"at 'h's law allows OF no
o'ne'S 'nst''u'o"s' 'o' 10 apparent that all who
u!te u"ue' may Ss'ec' '"e'' own mode OF estn.
oIsnng c1eon' ms Heeoom. When their
cap'a's, cIes!eu OF l"vt"eo. me institution" mus
nj report 20 inc comptroller tor publication.
me public will thus know in VIVA, the capital
co"s's' WIN yoot PERMISSION We will low
proceed 10 snow !" "na' particulars capital in-
xy.o u, u" 'ea! esc"!,'es 10 oe'ef shan money.
~. .m:o u" "'e Ut surplus capital IN this
COUNTY: : Az 10 sc"vs'y smp'oyeo IN some depart.
..om;r.d f"r h.1L;,o md ho".,v ""en cas" r., -
20" """nH s"' "o19s are opened tor
subscription every oo'!a' Pa'a '"' IS taken from
."'"e "Ssse "us. ".e '"e sr'a' cry against
""N .u ~. '""' VIZ "''"opoy feature
"s'"' ~ !'s"e""sa rPff't's to tRe,f capitals.
Bank stock has been sought after, because il.
pays !atee ovoend ano 70 easily converted in cash
. r. sAA
was called ~ from other investments and paid
mi" Banks Mortgages have been foreclosed, and
properly eacrhced 10 raise money for this purpose.
rave banks oeen OF service 10 the sumo extent =?
by n" means; those who have thus been compel.
.eo 10 pay on mortgages have res"red to banks for
.s"po'ary 'on"s. Nno many, TO the usurers. from
woo'" 'ney generally return bankrupt. In process
o. ''"e me Increase o, o"hk charters absorbed all
;n ma money w"'cn hao s'en loaned on mortgage
"nn' was the consequence Mortgages were
pau pa o" o"' personal ''aolties in the shape Of
" osyS ana moh'ns notes h''ed their places The
inquiry al oank 'ecame: does 10 pay promptly?
aoo NOT no aoIs 10 pay :Funesuahty and mol ability
was me trs'. Inc resu'! We all know. The hush
"e's" '"e country ,"1" me means OF this system
u e~e"a"e'' a"u ,"'e enormous aggregate OF
p'"m''e' 10 pay: '"os Drought into existence
w"' h . a."""u IN sustained ny motion :
"o ny ",, %"a ;"e'e.ots when the rude hand
'ts sPeci"os n"se-'t Tell! and great was the fall
shere"t. II DO 'ks are opened for a cash subscrp-
t,on. " acts as an absorbent aud an jury is in.
h,cted upon the circulating medium. One gfea,
object should Or TO procure money where sit is
plenty ana cheap ana bring it to this country
where Il Is scarce and dear" Now il we make
our capital co"e's' OF the bes. kind Of record secu.
mites, we can issue ponds and others evidences
OF debit having many years to run and borrow
money abroad When money shall be raised in
thus manner. any amount OF banking may he done
sdvan'ageous'y. The business Of banking should
he on certain amount OF cash; and the only
qsest'o" which requires answering is, how can
IN" money be obtained TO the hest advan,a
Surely II II can Do borrowed for 20 or so years, at
an interest OF "er cent, it is much better than to
call It from the pockets ot the pe"pis when il, is
always worth seven. The North American Trus,
ami Blinking Company has crented Two de part.
meni; one Tor ing and the other for borrow.
ing and lending and investing capital &c. The
loan department 10 required TO obtain money on
long time to suPply specific sum to The bank.
when distinct bank is formed with fixed cash
capital which will Ge under the charge Of Off
GERS appointed for that purpose by the general
board Of directors.
The loan department having charge Of the cspi.
tai will increase from time to time the bankiny
spital as the exigeuciss Of trade and the business
Of the country may require. The effect OF this
system OF obtain'ng money for banking will be
*. ccvr,,, mi msI. ~. .,".I ~ "'""ey INTO