Juliet signal. [volume] (Juliet [i.e. Joliet], Ill.) 1844-1???, 1847-07-20

cIous metals, meet the eye every where;
and yet it is said that the still more pre-.
cious portion is hid from the popular city
of Mexico.
REMARKS OF MR.. GREGG, OF COCK,
In Conrention, on the question of Bank.
ing.
Concluded.
Another thing in the system of banks,
was that the capital is not usually paid
IN, small proportion only is paid and the
balance secured by the notes of the stock
holders. For instance-the first United
States bank had "a capital of $40 OGO, 900
of (which was paid in, one half million;
the second bank Of the United States had
a capital OF $35, 100000, and only two
million was paid in. Yet upon this small
amount of capital actually paid mo the
bank, the discounts and dealings in ex.
change during one year and little over
amounted to $4,000, 600. Ard this, sir,
is but specimen of the transactions that
are carried on under this system-styled
banks and banking. In 1910, the total
amount of bank capital in the United
States was $50 100000 and the total a
mount ofmoney collected in their vaults
was $35,0U0,U00. Their loans and els
count on notes amounted to 100000, 900
1t was also their practice to make large
loans TO presidents and directors, without
security, and in 1910, there was due by
directors of Banks to the several banks,
the sum of$l50. 100000, and one third of
this was due on loans. BY report Of
committee appointed toexamine the af.
Ialrs of the United States Bank, it ap.
peared that there was due that bank by
one Thomas KidweIl, a broker in Phila-
delphia, over $l1,O00,OOO, which had
been loaned out to him for the purpose of
shaving. At the same time that that
bank was loaning out this great sum TO
that man, loans were refused to good men
of that city and upon responsible paper;
and they we're obliged to go TO this bro
ker and pay him large discounts, thus
forcing men to pay indirectly by this sha
wing, what they could not charge directly
and this too upon well secured paper
He thought it would be conceded by all
that any system of banking was highly
injurious. Is there, he asked, in the
whole system Of government, greater
power conferred than that of creatingya
currency And if this power is to be ex.
erted it should be in the hands of the gov
eminent and not placed in the control of
irresponsible corporations, Institutions or
associations. 1t is power not to be con-
terred upon any body of incorporated in.
dividuals, no matter how respectable they
might be, or the standing they occupied
in the world
1t it is destructive upon business, it ere.
ates uncertainty in trade, and makes the
business of The country mere lottery
1t is also destructive Of the morals of the
community. In 1924 the banking issues
in the U. 5. was $40.OO9,000; in 1897
they had increased to $4,000, 900, and
at this time was the great suspension
In 1643 they had decreased to $50, O00,-
go, and in 1s46, the had gone up to
$l05, 100000, doubling in The last 8
years. shall use these facts. when more
properly in order. to show the great un-
certainty which these enlarged bank is
sues create 1t had been admitted by the
head of the u. s. bank, man who had
certainly great experience in banking.
and with all its business, that the tenden.
cy of all banks was to create an overis-
sue of paper. And thus it gava them
great advantage over the rest ofthe com
munity, while the over issue was thrown
out in the market. When this occurs,
it produces overtrading, and every man
emharks in speculation-prices increase
1.-THE laborer receives higher wages, and
so with all other business. The curren
cy is inflated. and business becomes in
flated just as unnaturally as is everything
else. Wherever this happens to be the
case, then the importations increase and
immense quantities Of goods are brought