New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1852-02-27
he ,uopI,sd When the through travel on the

course Of operation in all the pursuits Of lie =
II the answer to thi, question be, as 1t must be,
Affirmative. we would beg orr neighbor to In
form Us why it is that a law which applies 10 all
other trades cannot be applied to banking as II Is
among ourselves, and in all the Eastern States
| Our small traders do not need to go 10 the Bank
| of America, nor do our large ones find it neces
sary to 20 to the Mechanics and Traders Bank
| To as it appears quite obvious that what our
| neiehbors need is to rid themselves of the mo-
nopoly that The Ledger desires to perpetuate,
and permit small capitalists TO associate for the
purpose Of opening small banks at which small
dealers will be accommodated. To this, how
ever, he will answer, that small banks are dan
gerous TO the stability of the currency, and that
| the only mode of keeping that steady and uni
form is, as much as possible, to contne the con-
troll of il to those persons in whose favor the ex
| listing monopoly was created, and in whose hands
| the value of the currency was so remarkably
| stable during the years from 1887 to lof5-and
thus to confine it by way OF carrying out In per-
lection his views in reference TO the interests OF
| democracy and freedom of trade. In answer to
| this, we should be disposed to say that the cur
| rency Of England and that OF France are both IN
the hands of monopolists, and that nothing can
| exceed their unsteadlness; while those OF the
Eastern States in which banks are most numer-
Gus are remarkable among the communities of
| the world for the steadiness of their currency
and the safety of their banks. But our cotem-
| porary is so much smitten with the advantages
| of monopoly in banks that we fear those exam
| pies will be lost upon him.
| Another portion of the people of Philadelphia
appear to desire, if they cannot have more banks
at least 10 be permitted to add their capitals to
| existing ones, and thus to fad secure mode Of
| invo stment, while enabling the banks to extend
their aid to small traders as well as large ones and
meet the this would seem to US well calculated to
views of our contemporary. Far, however, from
it. He desires not only to perpetuate the monop-
oily in the hands Of the existing institutions, but
also in the hands of the existing owners of stock
that they may combine to secure dividends at
the rate of ten or twelve per cent. per annum,
largely derived from the use of the idle capital
whose owners now ask to be permitted to con-
vert their floating deposits into fixed capitals,
and thus to increase the security OF banking. His
| remarks on this proposition are as follows
"Some Of the banks OF this city are asking for An
| increase of capital Why Because they can do
more business, and make more money for themselves
This is the with perhaps one or two exceptions
with every bank in the city IL the reason is strong
enough to prevail In il should be in all aad
shall probably soen have the banking capital here
COUPLED Is that esied by body but the bankers
| We think not. 7htre banks here that it
uoud be usH TO hare uond up, If for no other reason
than TO put the BUSINESS IN hands " banking as
profitable and necessarily limited, lett go round There
besides officers in banks here whose arrogance is
| insuffeIable, and who, from having ned place for
many years act as though the concerns were their
own. Having no sympathy In common with the
people whose servants they properly are. the
peoples representatives. should have little considera
| lion for them, aud. with the same unconcern that
| they turn deaf ear to borrowers, should their
| prayers for more capital be denied There can no
public injury result from q refusal to increase the
banking capital here at this time, and much good
| may result"
I" If banking is necessarily limited, let IL
| 60 rousd" Such is the doctrine of this learned
| advocate of British freedom of trade Unon the
| same principle, and with equal truth, might he
say, If the manufacture of cloth or the sale of
sugar be necessarily limited, let US close up all
the existing factories and shops, and open new
ones" There exists no more reason for limiting
the power of associating for the purpose of
lending money than fer limiting the power of
engaging in the manufacture of cloth or the sale
of sugar. and the best evidence that such is the
case is, that it is precisely uhsre there are the ts~sst
limitations that the currency is the soundest and that
the banks are safest.
Again, we are here told that bank officers are
arrogant II such be the case, what is the
remedy Can it be found in the maintenance Of
| the monopoly to whose existence that arrogance
is probably due Assuredly not Give them
| compettion-let them feel that they have ceased
| ~ he 1911
| away To do that, would be, however, to
| make one step in the direction of real freedom
| OF trade, and our contemporary appears to have an
| uncomfortable aversion to any step in that di-
| fectl0n that VIII not close the domestic markets
| for produce, and thus tend 10 aid the manuac-
| turers Of Birmingham and Manchester to dictate
to our farmers and planters the prices of all they
| desire to buy and all they desire to sell-and to
! do this in the name of free trade
To real free-trader nothing could by any pos
| sibillty appear more worthy of admiration than
the sy stem of banking that prevails in Massachu-
sets and Rhode Island, for there capital finds at
| all times local investment throughout the State
| for the benefit of the communities among whom
| 1t is accumulated; but this system does not meet
| the appreciation OF our contemporary, who thinks
that the perfection OF free trase is 10 be found IN
making banking privilege to be enjoyed by
| few, at the cost OF the many. He, therefore, OBJ
| lects 10 the whole system OF those States and
particularly to the fact that by reason OF the
use OF small notes they are enabled TO effect their
exchanges at less cost than any other commu-
| mites in the world. This he regards as awful"
and he thinks il "foreshadows wha! will be the
result in his own State, Ii the Legislature
should arrive at the conclusion that poor man
| has the same right to receive one dollar note
IN payment for his labor, that a rich man has 10
| receive note OF a thousand dollars in payment
| for house or horse. Sound democracy, in
| his view, requires that the small trader be re-
| strained IN his actions, while the rich one goes
iree-that barking should continue a monopoly
and that bankers should be restrained from
adding To their eAisilng capital, les, the mono
pohsis Of the present hour may be compelled to