True American. [volume] (New Orleans [La.]) 1835-18??, 1839-01-11
EDITED nv JOHN nBBs0N,

FAITHFUL AND BOLD.
NEW OR LEAN
FRIDAY, JANUARY ii. 1890.
The Bank.-Fme Banking, Mr.. Locke. has
introduced in the House, bill to relieve the banks
from the forfeiture Of their charters incurred BY
the susps nsion ofspecie payments We have no,
seen the bill nor have We heard il read. When
/, is printed We shall notice its provisions more
particularly. In the mean time We mus, content
our'.lf with few general reflections on Is sub.
jec,. IL
We have more than once declared our firm con.
victon tina. the Banks Of this State, were not
wholly to blame, for the necessity Of closing their
vaults and refusing TO redeem their circulation at
a time Of general depression and suspension. 1t
was superinduced by the course pursued by the
General Government. They were driven to it by
the mad folly and mischievsus policy Of the eye.
cu,ive. The public treasure was forcibly npd H.
legally removed from its legitimate depository
where !, had bsen placed by law, and scattered
among horde Of anxious. greedy pets whose ra-
paci.y ard nvarice have alone been surpassed by
more recen, Subtreasurers. These pet banks at
once eXphnOeO IneT CHCuIdlOn. Notto were NY
ing in every direction, like leaves in the autumn
winds. Heaps were in the hands Of individuals
who had never been bred even to the hope Of OBJ
tanning smaller fsvors from the tickle goddess. In
counting their gains, men forgot that there ever
had been units, ten, or hundreds,-'heir estimates
ran into tens Of thousands and hundreds Of thou'
sands. Princely fortunes were to be realized in
day, and he was considered a perfect drone-n
drudge pcer, simple, friendless wight, crawl.
ing worm, who could not get into bank and turn
the keys Of the iron-room at will. The green
table became board Of speculation as wild and
exravaeant MS tina, which is held out Ivy the de-
lusive but slluring faro.
The Banks look II upon the money Of the gov
eminent as legitimate basis for extending loans
and discoun,s-mcnoy which they were liable to
be compelled to refund in gold and silver at a mo-
men,'s warning. They pursued a blind policy, in
aiding the Executive to put his plan into onera-
ton. Like the silly fish they were easily gullsd
with the Qlded bait.
Next came the specie circular. Credit had been
strained to the utmost limit 1t could not have gone
further. mania for specializing had become unver-
sal This sudden fortunes acquired by the rise of real
estate made eager to take up government lands
which were thrown into market. When the circular
was issued, these lands could only be purchased with
gold and silver. Government would take nothing hut
the precious METALS Extraordinary drafts made
on the Banks. They were daily compelled 10 pour on,
their very life blood. In its stupidity with endis
purpose, the government constantly transferring
specie from point to point-requrng the pets to dis
gorge-aud frequently to points where not 70
quired-leaving those bare and danuded, where it
absolutely necessary.
These vera some Of the causes which led to the
pension Of specie payments by the Banks. But the,
all. The Banks themselves aided in precipi
tating their ruin. And our hanks exhibited al
gross Encouragement could be found throughout thu
union. They had adoptedth system Of fayoritism-
lending immense sums 10 certain individuals, whi
from others, all accommodations and facilities
withheld. The Directors themselves it were, bat
tened upon the spoiIs. They were enubled,-tley
other favori,es TO embark in extensive speculntons
frequently foreign the natural routine Of their
occupations while others, actively engaged in trade
in and the ordinary avocations Of life
denied the smallest and most ,rifng lonns. They OK
pended runs, tho amount of which is astounding, i,
purchasing real estate and in other specuations, while
commerce and legitimate business suffered to
guish The Banks exclusive liz their loans. Thee
the principle that it suffer to lend all th
money few, and their directors among the few wht
extensively engaged in business. or in speculation
Of kind, than have it distributed for the gooe
and to promote the interests of larger number-al
though it might consist OF the whole community. ]
seemed to them to promise greater gain! But it wa
not safe.
When the shock came, for il did come like par
eel Of bricks that had been placed in a row by the
playful! boy, and ere made to fall one after ano-
Their in rapid succession, those Spectators,
on each other, found it impossible to maintai,
themselves They had to fall. The Banks, too
had completely used themselves up, and coule
sustain them no longer. Tbs 6rs, brick that tun,-
. bled brought down another and until tn
frs. question which naturally suggested itself Of
change, was no, swho else IL broke = but 'who ha
not failed! The Banks were nonpuss Thes
favored debtors they had sustained as long a. the
0 wers able. When they withdrew the only pr"
d which held them up, they had to fall The Bank
: som found Themselves in situation which compel
ed them to Look on, for their resources. But thei
J. debtors could not meet their demands. Bankrup,
) cy was the inevitable consequence. How lon
have they been in situation which rendered i
impossible to furnish the medium Of exchange an,
/ the accomm oda,ions for the purposes Of com &c
, and trade, that il was designed .hoy should fu
c nish, when they were chartered! Now, when
|. is absolutely necessary to the dealer in the staple
" and produce Of the country, 10 have cer.an &C
J. commedations, the Banks have not the
!. granting them. They are crippled-,hey hnv
' not the natural energies-lhey have not covere
t. from the severe paral, sis, brought on, in gre'
II measure, by their own folly, or in bostering u
II embarrassed or speculative tavori,er. They wei
created to promote honest industry and give q
impetus to enterprise-to aid in developing the in
10 menss resources of the country. Say, have this
!, perform cd their duty?
We have ano,her objection to the favori.ism e,
:: hibi,ed by the Banks. 1t has given Fictitious in
, portuncs TO men, who have not been intended b
nature or education, to lead in council or WELD
dictatorial authority. ". has the ommand Of til
purse or = consciousness Of their power Of 81
noying whoever dare dispute their pro,enson.
p thrown around these lordngs of the green tabI
!. a seeming importance which they WELD with q
>, arrogance not only ludicrous, but absolutely d
!, gushing. It does give them the power owe
: the limid and the sycophan,ie. They exert it o
all occasions, assuming right to oversee and ST
perintend the political and pecuniary interests
II Ito citizens. They are becoming so inflated vii
s.f-impor.ance, that it is laughaJle to the al,