The spirit of democracy. [volume] (Woodsfield, Ohio) 1844-1994, 1846-07-04

BROKEN BANKS. The following list of banks,
which have recently failed, has been published by
ThompsonS bank note list From the losses sus
tanned by spectators in flour and wheat to the
west, it is possible others may be added to the list
Lewis County Bank, May 16,
1886, - so cts. On the dollar.
Canal Bank. of Lockport,
June 16, 1916, so " ="
White Plains Bank, May /,
1876, 83 "
Farmers s. Drorers, Buffalo.
May l3, 1916, 95
Bank of ST. Clair, Michigan,
May Z, 1916, 25 ="
Bank of River Raisin, Mich,
May21, 1876, rs
Manu- & Mech, Nantucket,
Feb. 10, 1916. 81 GO
Commercial Bank, Macan, Georgia, June /, 1916.
It will be seen that the nine banks in this list
have bills in circulation which can now only be
passed at from 20 to rs per cent. under par. Vino
are the sufferers by these broken banks! The bill
holders, OF course. And who are the bill holders! {!
Why the farmers-the laborers of the country
who have sold the products Of their industry for
rags loaned to and put in circulation by SPECTATORS
most commonly the fayorites OF short winded bank
ing interpretations.
A bank IN the interior (the LockporD gives pub
lie notice that 1t wiredeem Its notes in New York
at per cent. discount.
How many of the banks that fail at rs, so, or 80
cents ON the dollar, afterwards in a manner recov-
er themselves by buying up their rown bills, through
the agency of brokers, cannot be known. One
thing is certain, men in corporate capacity may
sometimes do things which would consign pr-
vate individual to the walls Of State prison.
The firm establishment of constitutional treas
ury will go far to counteract the irregular and ru
inous conduct of banks The usual plan adopted
by merchant in the western States, or in western
New York, to obtain paper money with which to
speculate in flour or grain is this. He may not be
worth farthing; but II he has strong friends per-
haps partner, or relative, in the board OF directors
ofsome bank in the interior, he makes note, with
somesort of an endorser, which the bank consider
ed sound, endorses as good, or discounts. A fire.
quent practice is to simply endorse it, and then it
is transmitted to this city, where advances are
wanted on consignments of -four and grain. The
commission house here, having confidence in the
liability of the country bank, offers II one OF the
city banks, with his own name, it may be, super
added. The country speculator gets his advance;
and if flour goes up he and his bank friends make
money; f il goes down they lose, if not break al
together The bills OF the country bank put afloat
in payment TO farmers for their labor, of course
depreciate in value, till il is found they have been
cheated out OF their labor, while the spectators,
who had nothing TO lose. are no worse of than
when they commenced operations. Now, If the
banks in the cities did not hold government depos-
ties to such extent, they could not. to the same
extent, have favored such movements of specula-
tors and banks in the interior. All the banks ex-
cept that OF Macon, Georgia, have probably fall
len through, mainly by speculations in breadstuiis
~ No Mrn1ArIoN OrrrRrp nv GnEAr Bar.