Portage sentinel. [volume] (Ravenna, Ohio) 1845-1854, 1850-02-25
The Banks in a Flutter.

"There was an assemblage of Bank
Cashiers, Directors Sc, held at Evansville
last week, continuing for several days in
consultation respecting the Banking bus-
ness. We do not know what is in the
wind. Surmises and reports might be 60.
silly gathered up, as to the causes of this
Bank conclave. One very probable report
is this, that the Cincinnati brokers'. have
monopolized the business of selling ex-
change, and are making money like dirt,
while the Banks are physiced by the ope.
ration. The smodus' of the brokers we
believe isthis: They receive large amounts
of Ohio Bank notes on deposite, by allow
ing low interest on deposits. With
these notes they go forthwith to the banks.
who must either give them eastern ex.
change at one per cent less than the cur
rent rates or specie. The law requires
them to have given quantity Of specie in
their vaults in proportion to their circula-
ton. Above..this quantity they have little
or none, and they are thus obliged to re-
deem their notes with exchange: the bro
kers thus making the one per cent off the
business men that the banks had arranged
to extort.
"This depicting process is found to open
leak in the extraordinary profits Of the
banks, and throw these profits into The
hands of the brokers Y The brokers more
over go to St. Louis, and into Indiana and
Illinois, and with their exchange buy up
Ohio notes in quantity, and the operation
is likely, so profitable is Il to brokers, to
bring in upon the banks aslarge portion of
their circulation. This constant run is
likely to try their bottom, and we think
not unlikely that the "red backs'' are get.
ting into pretty airy condition. 1t is for.
tunote for them that money is plenty in
New York, and that the banks can nego-
tiate loans there to relieve them. This
they are not unlikely doing, and it would
so appear ii the truth was known. The
beauty of the State Bank system is that
they are authorized to continue this high
pressure business and can maintain cir.
culaiion based on "Eastern Deposltcs,"
which said '.Deposites." heretofore have
turned out to be "loans'; or credits pur.
chased in the east by our bankers not un-
fsequently.
. "When the country is full of produce
the banks obtain exchange for their ''notes
discounted and can keep their money in
circulation, but this season the wheat crop
having almost entirely failed, they are
without eastern exchange 10 redeem their
paper which is presented The banks are
full of the ''notes of other banks" which
notes are not available to redeem, their own
paper, and which if the banks would ex.
change for their own notes that these 10th
er banks" have, it would probably appear
that there would be still large circulation
out, and a small sum in specie and ex-
change to redeem it.
"All that now prevents s'crisis" in
Ohio Banks in our opinion, is that "gener-
GUS confidence" that The Banks mako their
gains out OF, and get their notes into circu-
alion upon. Another year like the past
might explode the entire State Bank Fab,
ric' and show what windy structure i,
really is.''
So says the Aurora, and we do not see
how these ''privileged orders'' are going to
overcome this difficulty. They can ask
for no more legislation in their behalf. If
there was legislative body disposed to
grant i, the brokers would step in to resist
i Nous Terrons!-Piain Dealer.