The daily Minnesota pioneer. [volume] (St. Paul, Minn.) 1854-1855, 1854-11-27
A Few Words about Banks and Bank
ing.

NO pcrfOu SlHce Tic uSdStTUuS Gu vi 1905 /,
has demonstrated more fully than the pres
emf, the truth of the Democratic axiom that
chartered Banking is constitutionaily o
swindle upon society" Twenty years OF
tinkering on the part Of Wings and ''libc-
raj" Democrats, have not helped lawmakers
to the discovery Of system which insures
safety at all times to BillIssuers and Bill
Holders. Ultimate security, when banks
are properly conducted, has been attained;
but, as yet, no sufficient checks and guards
against dishonest officers and corporations,
and no remedy for the wholesale slaughter
of the interests of the poor in times of
"runs," Suspensions" and widespread, uni
sersal 'panies." i. j"
Stock Banking is a very pleasant sys-
tenn in theory, but very gross humbug in
practice. 1t is very pleasant thing, as
you fold roll of bank notes in your wallet,
to reflect that the security for each dollar is
deposited in the vault of some Auditors,
or Treasurer's, or Comptroller's Office, in
solcmn!y executed bonds, bearing the great
seal of some great State, whose faith is
pledged some day for their redemption. But
it is very unpleasant and annoying thing,
in times of financial revolutions to learn,
that even State faith, when bound only to
a future performance, affords no help to
present necessities, and that even great
seals. stamped ever so plainly on formidable
bonds, fail to save yours ultimately secur-
ed bills from falling through the ruin
ons ranges of ten, twenty, thirty, and
even City per cent. States may issue stocks,
and those stocks may always be ultimately
good; but States do not control money mar
kets, and they cannot legislate fnanciers
into the necessity of purchasing their huge
shinplasters at specified times and rates
Instant convertibility, and not ultimate Sc
eurity alone, is what is demanded in Bank
ing operations; and thus we see in all sea-
sous of '1panics," the notes which circulate
most freely, and at the least discount, are
not those whose ultimate redemption" is
secured by State stocks, but those whose
immediate convertiblity is warranted by
personal responsibility mn >,s7af
q So, at the present, while our Western
State Stock Banks, are breaking or suspend
ing at the very commencement Of run ur-
on their vaults, we would prefer for our cur
rent business operations, bank bills issued by
a man like GEORGE SMnH, of Chicago, in
whose financial responsibility and integrity
we have confidence, than the notes Of any
bank whatever, whose issues bear the seduc-
tive endorsement of "Secured by State
Stocks" We have seen the notes ofnearly
a hundred State Stock Banks within the
last six months deprecated TO such an ex-
tent as to render them utterly worthless as
o circulating medium, while the bills of the
Atlanta Bank, and the other banks owned
and controlled by GEORGE Smith, have an
along been good for goa at its regular pre-
MUM. So three years back, when the prin-
cipal brokers and bankers throughout the
entire West formed combination to break
the {" Wisconsin Fire and Marine Insurance
Company, owned principally by him, cv. ~
dollar presented under this systematic rum :
amounting to about . million Of money, was
redeemed with specie a. fast as It could be
counted - He has thus far withstood asll