True American. [volume] (New Orleans [La.]) 1835-18??, 1839-01-15
THE TRUE AMERICAN.
FAITHFUL AND BOLD.
NE w ORLEANS:
TUESDAY, JANUARY Is. 1889.
RDlTRD nv JOssN S:1Ba0N

TUESDAY, JANUARY Is. 1889.
Free Banking-No 3.-Hnvine shewn that our
banks have had some participation in producing |
the state If ,hinas which still presses embarrass-
mcn's and difficulty OIL the people; and having |
pointed out 4 remedy, we shall proceed TO explsi"
its nature and effect. That there should be check
upon the overgrown, bu. still growing power ex.
erted by Banks, 10 evident. Wherever they exist,
monopolics are crea,ed-m"nopolies which are
repugnan, our free institutions, and among them
the monopoly Of money, which is the worst Of ALL
Wealth, Or the command Of il, srr"ga,es and ak'
greeates TO ITSELF privileges and in'n uni'ics, until
modes, assurance 10 grown into overbearng, domi.
neering, imperious insulencs. To reign At tn"
green table and TO control the energies, the action
cf heavy banking institution, gives power TO
individuals which may be welded TO the great
injury il not the utter ruin Of others. We have
seen men crawl up, until they have some how or
other, orme ed ths mselves into the SC des'radle stu
atoms, where they could pry into the arrangements
Of their neiphbor, and levy a kind Of black mail,
in the shape Of homage, respect TO their opinions,
political, fnarcial or commercial They becume
as arbitrary as despots. There is n" end TO their
tyranny. They punish.-for they have the power;
and alas! for the voor, hungry sutton for bank
fovcrs, who has meri,ed their frown, by either
doubling their i'm naculaeness or crossing the line
which they have chaIked OUT. In vain may he
turn his eyes to the vaults. Their doors IRE forever
barred TO him.
Now, rhr remedy for the gross aud growing evils
which h We crept into our banking institutions,
is the enactment Of a general banking law. The
lending fen,ures Of such law, nre these: 1t will
| place al! men on nm equni footing in regard TO
banking, in proportion TO the amour, Of their oapi
tai. T 10 will come in between The bill holder
and bill mixer; and will see that the holder is no,
swinded ou, of his amount Of value, by the max err
for the property which the circulation is based,
will he in the hands Of the state. 1t will be the
| means Of bringing gu, and employing the dormant
| carial which 10 to be found in the idle and waste
lands which, uncul,iva,ed, are unpr"duc,ve, and
coa sequen,ly are but nominay valuable, and
| which other system can proftably employ
These lands may be hypo,hecated to The state at
| estimated value. The state issues her bonds for
hnlf,he amoun, OF the properly so pledged. These
bonds are sold, and the basis Of all banking, gold
and silver obtained. In like manner, personal
property may be pledged, and bonds be iesued for
one.,hird Of the value. The person or association
who may have pledged property, and Obtained
capital, can then proceed 10 the business Of bank
ing in the usual way.
| To proven, multitude Of little institutions, il
not derangin least EN- barrassne the system, no
person or association should receive bonds for q
capital of les. than 100000, The ends would
thus he attained without the disadvantages " hich
would accrue. The emouments Of banking would
Le open TO all, who In their own peraons, or by .
combination could WELD sufficient capital Ia
raiee The prescribed amount. The rate of interest
would be reduced TO its proper STANDARD. The
Inconvenience and baleful effects Of secret bsnk-
ing and the heavy penalties often paid, would be
avoided. The large banking institutions, char
tered and in operation, would be restrained in their
encroachmen's on the consconces Of It ose who
might desire accom- m odstions from ,hem. Usury
would be cur,ailed in its exac,ions. Capital tina,
remains locked up would be brough, into activs
use. The dormant resources Of the country would
be developed. A lite would be impaired to bust
ness, aud would be felt in commercia
arrsn .emcn,s, while under The presen, anz,
ton, there is nothing but strain, and diff Guilty
and embarrassment.
The Free Banking Law ie peculiarly advan,a
geous to the possessor Of real esate
Although i, Dies not guarany to him any pecu
liar INN uni.ies, it enables him to Keep his proper,
. always in market, and commanding its value
besides. i, renders ,hst portion Of estates. whic
is not under cultivation md is therefore unprodur
,ivs, capahle Of production without labor, for
drn~s in,eres, for iis value, as we'll hut wlic
is employed i" producing.
The pressure in the money m,rket Just now i
' extremely severe. Dealers hive no, been able {,
collect since the lst Of January. Oh their year!
claims, more than me to ten compared with tn,
collections this time last season. Several larg
, houses that weathered the storm OF 1887, nov
,oter to their fall. Their only snIvo,ion is in III
r Banks. Las, week, one OF our heaviest concern
only escaped Temporarily, by getting relief Of fl.
~ thousand dollars FROM . certain foreg,
8 exchange office bank down town. The idss o
mex, March will prove fatal time to some house
which have fal.ened on the food received from
Bank vaults.
- The puri6cs ,i"n Of the comm ercial a,mo.pher
l. must 60 on, and we may be sure tina, all "bnox
ious particles settle I" the bottom. All this ,rou
:, bic and pressure in the money msrke is asior
!. ed BY the unequal scion Of the Banks. The,
Directors and governors strain every nerve 10 sus
Is lain their influence and hence the policy of Iene
ing 10 the lew. There are hundreds of en,e
prising mechanics and small merchants now
ii this city able and willing 10 give ample securi,
l. for small sums OF money from the Banks, an
their paper Is rejected without the least hes,,anc
1, is not the tear Of having the specie drawn fro.
!. their vaults, that these institutions refuse a, tn
r presfn, moment 10 discount freely. They have
- many i'm ense debts to groan under, thu, the Pr,
Of lection Of their large deb,ors becomes natter
necessity, else they will lose the paymen. Of the
= claims.
Let the Legislature tout ference party feali,
examine inio this matter, aud they will find that it
the INSTRUMENTATION Of the Banks which now pr
vents them from flying to the succour Of a communi
az active and industrious ours 1t should be the
ject Of The Legislature to adopt measure wifi
n will cure the equal action Of sixteen charter
Banks. This they d., by throwing BsnAng op
TO any set Of men. We may then eecaps Il
evils to which expanded currency must reduce Us
contraction Of the money medium followed by the pre-
ration nf credit and the Of hundreds of
men.
Free Banking will ensure stealiness in tho curre
. cy to which we are now stranger. 1t will develo