The daily crescent. [volume] ([New Orleans, La.]) 1848-1851, 1851-04-29

Free Banking.
The usefulness of corporations is an open ques-
ton. They have their advantages and disadvan-
tages. Doubtless, where many individuals are
willing to hazard something in the carrying on Of
manufactures, where they are to add to the pro-
duciive capital of the country, in such cases the
corporation plan works well. But for the life Of
us we never could understand why the partners
in Bank should be free from the joint and several
obligations Of tie mercantile partnership. Banks
are doubtless convenient, and facilitate the opera
tons Of commerce. But, on the other hand, they
have fatal facility in the creation Of apparent
wealth, which often leads to ruin. In reviewing
the commercial history of the country, we find
every pecuniary revulsion has been preceded by an
excessive abuse Of bank accommodations. Then,
too, the system Of associated capital leads to di-
vided moral responsibility and directors and off,
GERS Of Banks frequently commit acts in their Off
cal capacity, which they would scorn to be guilty
Of Is private individuals. 1t is this ooseness Of
thought and action which is one Of the great evils
in all corporations For instance the famous battle
Of the brokers' last year, exposed transactions of
the most reprehensible character in connection
with the Canal Bank.
The Cashier specializing in its stock, and the fc-
tious paper on which these wild speculations were
based, when due, not protested like other paper,
but kept as it were suspended. The capital of the
private stockholders jeopardized, that reckless
specuator and his New York coadjutor might save
themselves. Think of the Cashier buying over a
hundred thousand dollars worth of the stock, and
when not able to meet the drafts of his conspra-
tor, quietly permitting them to 60 without protest
Then, again, the famous Mint certificate for one
million of dollars, and the payment of 49,, S35 as
interest for the same!
Such conduct on the part Of an individual, would
be denominated swindling but in Bank Drec.
tory, it is only fnanciering. But this Board were
swept out-they had been clumsy in their devices
for Bank has a conscience-crime, in its code, is
making mistake which leads to exposure. The
fraud was nothing-the detection touched the
conscience of "Mat." The foreign capitalists
made clean sweep, and Canal Bank is to all
intents and purposes in Wall street. Its brick and
mortar are in New Orleans, but its money bags
are in New York. Its body is in the Second
Municipality, its soul is in ." Mats" breeches
pocket
The old administration certainly played bold
tons.
The new Board, we believe, have not violated
the law The old Directory were the Jack Shep.
pards and Dick Turpins of the highway; but the
new fellows like Jack Wilde, keep the law on thei
side. An instance of their mode Of operation ha,
come under our notice recently and we cite it a.
an instance of the injurious effect of this close cor
poration system. A poor school-master, residing
in Harrisonburg, La, some months since RENTED
home to his friends, one-half of fifty dollar Cana
note. 1t never reached its destination. Shortl,
after this, postmaster in the immediate neighbor
hood, was detected in robbing the mail and con
fessed that he had done for several months
The half of the note sent by mail has never beer
presented to the Bank The young man presented
his half at the counter last winter, and received
twenty-five dollars; and was informed that he
could receive the remainder, by giving an indem-
nifying bond. He was unable to give it, having
no friends here. But last week a gentleman Of
high standing in the Parish of Catahoula called at
the Bank, and offered to give an indemnify but
the President refused to pay except on judgment.
Now merchant who, on being presented with
proof of the loss Of any bill, Especially after it
had lost its negotiable characer and the offer of
indemnity, should refuse to pay the debt, would
be dshonored, not only commercially, but morally.
We have no idea that this Mr. Montgomery, who
as President refuses to comply with the obliga-
tons Of law and justice, would hesitate to pay a
debt of his own. But as the President of this
New York shaving shop, he positively refuses tc
do that, which, we hope, as an individual he woulo
at once perform. A suit would involve taking the
dispositions of postmasters in two towns thousand
miles or more apart, the proof of advertisement,
and of genuineness and the offer of a bond All
this would require professional aid, and actually
consume the small amount. The refusal, there.
fore, to pay on the moral evidence, and the ndem-
nifty offered by this young man, subjects him to
the loss of this amount, very small to the Bank
but of considerable importance to the teacher of
public school in the Louisiana swamp.
We think picking pocket decidedly more
honorable mode of earning small sums We are
quite sure men Of small MEANS in the interior, will
hardly remit home to their needy families Canal
Bank bills. To save them from the danger of such
spoiation, we publish the fact, so that they NAV
avoid Canal Bank bills. These are some ilIustra-
lions of the injurious effect of monopolies The
Canal Bank is controlled in New York, and it is,
perhaps, hardly fair specimen of banking in Lou.
'siana. Yet the way to test principle is to take
an extreme case.
The remedy for the evil is not in the destruction
Of banking, but by making it open to all. Lei
Louisiana adopt the system of other States, and
create banking capital, based on the actual prop
rty in the State Competition is the great regula.
or of trade. 1t teaches honesty and good man.
nes. Bank presidents will be like other men. The
air rivalry of trade will hold each in check, ant
the people will thus derive all the benefits of al
increased banking capital, without any of its dis