Iowa capitol reporter. [volume] (Iowa City, Iowa) 1841-1855, 1851-11-12
Banking Securities.

After the late explosion OF several banks In
the State of New York whose issues were Sc
cured by the deposit of premium stock, that OF
New York and the United States, we despair ol
any system of banking which will secure the
poor man from being plundcred. The notes OF
the exploded banks, exploded because they
could not redeem their circulation; sank lrnme-
datclY 10 a discount of ten to fifteen per cent,
these being the rates established by the brokers.
1t is true that the New York system, in requl-
ring the pledge of stock undoubtedly good,w
secure the ultimate redemption of the paper
money issued under it, at or near the par value;
but new objection now deveiopcs itsclf-the
poor man who holds the notes of these suspend
ed institutions is unable to wait the slow ac-
ton of the Comptroller; he must have for him.
self and family the necessaries of life; the sem
blance of money which has repaid him for his
toll must be exchanged for the means of daily
subsistence; but This bank paper is now under
a ban, it has lost its ready currency, and submit
he must to the conventional shave. Here We
have the boosted banking system Of New ork
imposing on the sons of toll loss of one sixth
or seventh of their hard earned gains!
We trust sincerely that this illustration of
banking, under this the brag system, viii! not
be lost upon the voters of Illinois when they
shall shortly east their ballots to re Jet adopt
the Banking Bill passed by the last Legislature
and referred to them for their final action. The
Illinois bill is infinitely worse than the NeW
York plan: it has on its vlssage marked squint
towards contemplated dishonesty. The latter
compels the officers of State to receive nothing
but par State or United States stock in pledge
while the former, the measure proposed in Hi
nos allows the deposit of all sorts of stock and
public and municipal bouds, at their Temporal
/ nv valuc--turnpikc, insurance, county, town
/ ship and every sort of stock may be taken at
xfsppsr current rates security for the notes to
be issued VINO does not perceive thatthe cor.
! ruption which banking never fails to engender
| exposes such measure to distrust and serious
apprehension? We claim the right to speak a
word upon the subject. for most certainly
believe should this measure become law by
the popular approval, that the people of Iowa
citizens of a bordering State, will eventually
suffer most grievously in common with our fell
low citizens of Illinois who may give vitality
to this dangerous scheme.
Is the establishment of domestic ban ks essen.
tal to States prosperity? Those who say
aye must look elsewhere than to Illinois for a
confirmation of this opinion. That State owes
to banking the only drag chains which ever
impeded her progress. And from the period
when the rag mills were swept out o: her bor-
dcrs, her advance to wealth, population. and
greatness has had CELEBRITY which eclipses
every like exhibition upon the magic soil Of
North America. Then why should linois
madly risk again the shoals and breakers
which once wrecked her prosperity? But We
are sorry to admit our fears that this banking
| bill will be carried through the ballot boxes
/ The wing press of the State endorsed it from,
| the beginning, and has given il a steady and
warm support. The democratic journals have
! opposed it, but the opposition has in most
instances been of formal rather than of that
| rigorous and searching character which the
| impending danger should have melted. 1t is
also no daubt the fact, that the capitalists Of
! Illinois, belonging to class who are uniform
| ly the controllers and pets of banks, have gen.
orally lent the scheme helping hand. Such
are the grounds for experimenting a DISASTROUS re-
| suit. The only remaining hope that we can
indulge is, that the recent exposition in the
State of New York of the banking system there
one so vastly preferable to that submitted to
the people in our neighboring State, may have
occurred in time to work a saving influence. -
/ Burlington Gazette