The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1843-03-29
BANKING IN THE SOUTH AND WEST. .

Those figures for ls4s present the banks which
tnue to do business The others have failed and been
placed in liquidation by Legislative enacments Now
according to the advocates Of bank credits the people Of
the States here enumerated must be rretrevaby ruined
by thus being deprived of bank loans One of the
seductive arguments put forth in favor of banks that
"hey afford capital to those who have none and thereby
put the poor upon level with the rich" If go back
to that period of country when there banks
shall find the of the position proved The first
bank, the Bank of North America, established in
$780, instrument Of TAXATION. In that year. the
tinental army in exceedingly suffering condition
for want of pay, munitions, clothes and food.
came 70 Philadelphia that Charleston had fallen into the
hands of the British event which would have released
large portion of the invading troops to strengthen suf
fcienty the New York forces enable them to take the
offensive, in which it became indispensable to rut
the army in condition to beat them back For this pur
pose subscription Of 100000, Pennsylvania currency
raised in Philadelphia to form bank, which
ried into effect and answered every expectation based
upon it. The government incorporated Dec. 1881, and
the Pennsylvania Assembly, April 1882 The issues of
paper by this institution highly beneficial to the
army; but after that necessity ceased its banefu effects
became very apparent among people to whom its opera
tons new. In March, 1885, when the concern he'd
been in operation Ave years. number of the
inhabitants Of Chester county Pa addressed the assembly
a memorial which entered the minutes, and the
following is an extract
MEMORIAL TO REPrAL BANK NORTH AMERICA,
MARCH d, 1885.
Representing that the bank established at Philadel-
pha has fatal effects upon the community that whilst
enabled by means Of the bank, to receive
three times the rate OF common interest," and at the same
time to receive their money at very short warning when
they have occasion for t will be impossible for the
husbandman the mechanic to borrow on the former
terms of legal interest and distant of the prn-
cpal that the best security will not enable the person to
borrow that experience clearly demonstrates the mis-
that importers have been enabled to support them
selves fictitious credit by means of temporary pune
tuay at the bank until they have drawn in their honest
neghbors to trust them with their property to pledge
credit suress and have finally been involved in ruin
and distress that they have repeatedly seen the stopping
discounts the bank operate upon the trading OF
he community with degree of violence scarcely nferi
to that of stagnaion of blood in the human body
hurryng the wretched merchant who hath debts pay
into the hands Of gripping that the directors of
banks give such preferences in trade by in
money to their particular avores, as to destroy that
equality which oughtto prevail in commercial country
Therefore in order to restore public confidence and pri
security, they pray that bill may be brought in and
passed into law for repeating the law for incorporating
the bank"
The committee to whom referred this petition re.
ported strongly in its favor remarking
That the great profits of the bank, which will daily in
creas as money grows scarcer and which already far
exceed the profits of European banks have tempted TO-
regnersto vest their money in this bank and thus dra
frsm us large sums Of money for interest"
Anth. OWLS, appems, which hove overwhelmed the
ly presented themselves the sagacity of fathers
The effect they clearly, to destroy the credit of
the industrious and frugal because spectators and
traders absorbed all the money of capitalists by being
abled pay higher rate of interest than the results of
labor could Afford How truly has this been fulfilled in
day. when all capital has through banks into the
hands Of spectators, and production decreased while
consumption increased until the whole country i'm
poverhed The result OF the above diminuton of bank
ing the States enumerated will be to make money cheap
and easily atainable by the husbandman and mechanic
The SPECTATORS turn has come to be excluded
There very few persons who make the distinction
between that apparent prosperity arising from spending
money borrowed and the real distress occasoned by
paying that money From 1877 to 1885, the English gov
eminent borrowed from its rich citizens aud spent among
the laboring and trading classes So 900
$500 900 per This spent for arms, mum
tions, clothes pay soldiers, sc. 1t distributing
money taken from the rich among the industrious The
result of course, great popular prosperity The
instant the ceased, that expenditure not
only stopped but $3.50 OOO 900 per taken from
the working classes in the shape of taxes and given back
the rich for the interest the money previously bor
rowed Since 1915, $4,000 600 have been taken from
the aborers and given to the rich The result is ncon
cevable distress SO in this country-om 1880 to $780,
in the above nine States $l67 900 loaned among
the people, producing great apparent prosperity Those
loans have not been productive but to be paid
back agan. The evil is net in paying back bat in per
hitting the loans in the first instance.
sales mt the stock Exchange.
$1,000 Ohio sssso b. ssk 1900 Kebtgskyss :,