New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1849-11-22
NEEY.YORK TRIBUNE.
NETWORK. THURSDAY. NOV. %.
E,nsi.s a.d Bankruptcy.

-. ,6v.nt,s4. are tangible. IL sopphes 4 first
-. .,,i,ls tor cheap prce. IL m axes the pro-
doc. Of ,bof 90 farther, increases the earniogS oil
the thrifty, and renders common among men OF
ANAL means what was before confined 70 men Of
l,ree Mota.l Insurance Con psnies for instance,
,s1rd insu-ancs 20 their members a. the mere
cost Of it. TIE consequence is, that Thousands Of
people insure thar property who would never
nave done II al the heavy premiums demanded al
tae osoes Of the old corporations. This Vest
bsnss, 70 the entire community, and triamPbsnty
demonstrates the virtue Of toe principle
Itrequires no great stretch Of sound sense 70
conceive that What % valuable IN one orAb'u u
basiaes. may be equally 40 In others II A1'0a-
isu is good in one use. IL will undoas'eoy %
foand GOOD ia more One Of the most important
r. the applications 20 which IL may be pr 10
,rsnsd IN, in . recent number Of thu MsTehantS
Hayaziae, with a oogent appeal 20 facts BY VII
ter evidently possessed Of extensive basinen ex'
perience and mint az fertile ss II 10 prsctiosl.-
He begins by stating the notorious fact that in this
country by far tns greater number Of bosins" men
become bsnkrupis in Boston, he says, tos. Of
every hundred who commerce Business, a. lets,
ninety. I've die poor in New.York not two Ult-
mateiy become wealthy, while ell pass through
the process Of bankruptcy, and 10 Pmsdslphis the
proportion a the successful lis stlll smaller he
then a6duoss rome interesting statistics from ne
records under the ate General Bankruptcy Law,
1nd says
" These toing. tsi,s 90 orf system q trade should
bs ehsracprzsd not ss System Of exchange out -
system Of bankruptcy tending 70 N" rol' or
engage la ~, the exceptions ting "hJ no"l''y-7
In rgro rule Inc exchange ~ pfO0ur'-f
Witch ls by 'trsfe % necessary and psfiecby
legitimate OPERATION and those VINO uooefths II
should eli viii allow, receive proper support ana
tu.t remuneration for their time and lssor. " ben
oos life rs. been psssed IN msntouous pursuit ana
the result N the Individual 10 not competence, but
poverty 10 evident that there must be some great
md fendsmental error ~ the basis Of the system,
which IL eshoves those who are Interested 10 sscer
tain and remedy, coVntsrsc, know that plentiful
reasons foy bankruptcy such accusations of extra
vassnee Impotence speculation, a. are sl~sy'sd
duoed ia individual but the effect bsng gsoersl,
20, individual, The must also bs general, and
sdeQusie % produce the effect
"1ser. i, such cause constantly though sileniJ.s at
work drsinius the life blood Of trade, bui msnlesiins
is general and widespread operations only ST those
periods which are known As crises IN the money
ms'ket.
Ths cause i. ne too Atgh rals Of tatoTest
Bot there are other reasous which Show with
greater force that the rate ofinterest ia excessive
these reasons are stated at length by tina. clear
thinker aud Impressive writer Mr.. Kellogg, whose
tables prove that at the legs rates TO cay nothing
oithosc actually paid, the aggregate interest on ex
existing public and other debts in this country, ex
coed many times the to,sl ret produce Of our indus
try. la other ords the amount v hi,h our people
ure bound TO pay interest on their debts ismsuy
times more than their whole earnings. Such
fact can have bot one consequence ana that IL
Bankruptcy, not Of the accidental snd Temporary
Kind. but chronic and steady. There Ia no escape
from this - long a. the present rates OF interest
are not reduced. Hence the universal uncertainty
and the perpetual and fatal hoctustion OF business
which prevail in the United States moro than in
other COZ ntries the commercial Clsss are Bstural
ly the first and most frequent victims Of our vici
Gus system though the evil eats into the substance
Of sn clssses, and oil are directly and deeply
intere,ted in ito reform. II ia however the amer
chants who should be the hrst 10 move M the
application Of the remedy the example once set
by them, will be sure OF general and speedy
imitation.
Bat wis, ia the remedy IL is simply the or.
sanizston Of a system OF Mutual Banking Such
abanking system can be established ast rs easily
&, the system Of Mutual Insurance, and Will De
found vastly more beneficial in practice Indeed
under our General Ranking Law there could be
no serious difficulty whatever in putting the idea
into execution. We copy the leading features Of
tho plan given by the writer 10 the Merchants
Magazine;
In order 10 secure she object desired. would pro
nose Tie formation OF mutusl bank Of discount and
deposit With sufficient guarantee capital Invested IN
interest bearing securities, which should recelve de-
,osa and discount approved paper based on actual
husiapsk tFspasruOlsl should issue bills but use
current funds the customers agreeing 10 receive such
rands In paym Of al liabilities Of the bank svi-
dend of the prohts Of each financial year, payable
thirds in cash and one third 10 scrip, At three
yOsr, date, bearius interest should be made 10 The
Customers, In proportion 90 their average dsy Ia.
Of deposi and the amount OF Interest," received
frora each in the shape of discount or otherwise -
The directors should be paid in o0mPen'sucn for their
serVices per centsge on the prohs OF The yeAfy bE
.ne., and ,hsre ,hosid he y board of unpaid super
yt,ors To watch ovor ,he Interests Of the bank.
such bsns originated by the right men and plsced
under q direction which would secure the confidence
Of the public musi be successful The mutual principle
embodied in IL would attract deposits by giving 10 them
c.rtain interest and would diminish the rate Of dis
count by that OF = dividend The amount Of reserved
profits represented by scfip would after thros
seual the svcrsgs net snnuA income OF the three pre-
viou. yesTs and al the close of i've yesrs a, most
would DC sufficient 20 warrant the return OF the guar
sptae capital o. the subscribers who duriug that term
would HAYS received the interest borne by the scout
tes As the bsak extended in operations IL must ulu
uustely emorscc among its customers the majority OF
"a. cuisines. men OF the CITY aud a. settlements q
their mutual transaction, could be made upon tie book.
a. hss long been th~ case A. the bank OF hAmenrs A.
bSaks formed IN other cites this
Advantage would - extended 20 externS transactions
at would seem very dhcelt for one bank - do ali
the business eQuired Ia city lie Newloik bat there
could be no acement 10 establish others and thus
Increase the eN penses The labor devcl,ng upon the
directors could Re much ishtsned BY esch branch CT
trade estsbiisAins commitsee OF confidence aadef
whose scrutiny al paper OF that branch should psss,
before being offered al the bank while the directors
should receive such compensation 80 would induce
them to devote their whole time and energy, depend
snt At the time upon the success Of the yearly
ousinssfL
"whsnever the bualress OF the bank should have be
thus extended IL would - 10 the power OF TIE
reduce The OF discount Ia such tmit
might De found Just and desirable Snj the custom
sry intsvs, must 30 governed sccordinsly.
Nowhere" It appears to u,,is one simple work
ing plan BY which sreiOrm may be effected, whose
necessity and Importance to the whole community
cannot DC exaggerated. BY means Of such a avs.
tenn i0tero,t can De reduced trade rendered safer,
aud healthy expansion given 70 every branch o,
labor Without II, commerce. manufactures sna
agriculture mast remAia the victims Of u,ary tor
.,uo bsxe saen legal aud Illegal rRtas NJ in,o-.,