Des Moines courier. ([Ottumwa] Iowa) 1848-1854, 1850-11-22


Iowa, 100000
Missouri, 100000
Arkansas, 100000
Total, $l6,0O0,O00
BY Eastern currency, we mean notes
issued by banks of States east of the
above States. This currency costs the
banks which furnish it no interest, and
the sum lost and destroyed is equal, in
The aggregate to one per cent per annum.
1t is liberal, then, TO put the annual OF
loss TO the Western States, and gain to
Eastern bankers, att per cent on the six.
teen millions, an amount equal to $l,-
10000 yearly. We know that the
people of the West look upon this pa
per money as capital furnished by the
banks for their use. and they feel that
they are fortunate in getting it at any
rate.
In our reasoning we omit to take into
account the broken bank and counterfeit
notes by which another heavy loss is
sustained; for had they banks of their
own, this loss might not be less than il
now is, The chances are in our opin-
ion, however, tina: il would be less; for
The people would certainly be better
Judges of home currency than a for
eign one. The banks which furnish a
currency for the West, are not, general
ly speaking, of the latter class. Our
experience is, that insolvent banks and
fraudulent bankers exert themselves to
put their currency west, while our sound
est and most independent institutions do
very little of that business, consequently
the risk to the western people on the east.
ern currency which they hold, is large.
The failure OF the State Bank of Hi
nois, of the Bank Of Illinois at Shawne-
town, and of the brood of Michigan
"wiid CATS" and the political harangues
against bank rags, and in favor of spe-
Gle currency, are sill influencing the peo-
pie in their votes. and the legislator in
his reasoning. Despite this prejudice,
and despite the laws and constitutional
prohibitions, we see springing into circu-
laton currency of checks, drafts and
sham certificates of deposi;e in sham
banks, which, though good for time,
will in the end be as great a fraud on
The public as were the wild cats Of Mich
igan.
For several years past, banking in the
aggregate has been good. Public opin-
Jon, aided by our watchful bull-dog-ism,
in barking down frauds, has kept in
check vast number of fog bankers, and
irresponsible currency makers. But a.
public suspicion dies away, and conf
dence, indiscriminate, in paper money,
takes lis place, we are measurably dis
armed for the fight:
These remarks prepare the mind for
questions:
lst. How can the Western States save
the tax of Sl,l2O,000 per annum, which
they pay to Eastern bankers!
I'd. How can the people of the West
avoid an irresponsible, and reliable cur
rency!
An answer to which may be embod-
led in a system of
BANKING FOR TIKI WESTERN STATES.
The system should contain provisions
for liberal issue of amply secured cur
rcncy. The security should be deposit
ed with board of commissioners, with
ample powers, and should consist Of one
quarter specie and three quarters solid
interest paying stocks. The board OF
commissioners should furnish the curren.
cy, registered and countersigned as the
banks nigh. want, and should, on the
return of currency, surrender back II pro-
por,icnate amount of the security. No
bank should start on less than $4,000
capital. actually paid in, and no bank
should receive more than five times It's
actual capital currency. Every bank
should have not less than five directors,
and no one siockhoder should ever hold
more than one fl FIJI ofthe stock. Three
fifths, at least, of the directors of bank
should be bona fide residents of the
township where The bank is located.
As far as possible, each State sho, ID
adopt its own stock, at fair valuation, as
security for currency, thus bringing a
powerful interest to bear ia favor of the
credit of tie State. by binding the inter.
est of the banks and the credit of the
State together-and the people general
| ly holding the currency would also be
interested in sustaining the State credit.
Connect these leading features with
liberal but safe details in system of gen
eral banking, and the Western States
will soon cease paving tribute TO Eastern
banks, and more Eastern capitalists and
business men will establish themselves
in every city and large village in States
where banking can be made to pay, par
licularly in Michigan, Illinois, Wisconsin
ard Iowa. We will pledge them $780,
900 capital, and 100000 of currency,
and our hun BILE self as citizen.
The whole of the Stock talk en-!