The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1854-09-06

- In hsIasr ard against the banker, tAat Ne q
rsqsifee TO spesfs IN baabiDg can be used Msre pr
Dly elsswcsrs and Otherwise Were Il not that ko
Of hhnci. bonds wish 10 retain them until thsy y
par, (Which WIN b, In AL human probability, vi
thrse years. BY which time II IL anticipated, Int
win b paid In fpn,) there would not b. one -hsH o
bank capital ID that State now that there ID.
Pray, what II the security attaching TO the 81
sand and one" New England banks that thsy shoul
suffered to pass inspection, while the hanks Il mi
ss y Hsns,ss,
England, without q dollar Of security deposited. !
st:ck notes twined In ~ capital and which Issue
to ave times the amount Of their capital stoasols
supply the West with circulation. This, hsweve
regarded as lsgitm ste-an right and no "wild q
Millions upon millions Of the small potes 1t sueh b
may be taken out and scattered in the West By EAs
buyers and operators in produce, and yet, the opera
seems to Be regarded perfectly regular and no
for excitement; although, all such paper, the Wes
farmer hss to stand shave Of from . per cent
sunshine, frequently breas down "a majority Il 8
circulation being In the West) and close up By pay
10 cents or less on the dollar stll It seems TO
illinois hank permitted to circulate here; and
too, when, II the bank breaks or stops payment, an
security Is IN the possession Of the State Treasr
New England banks -s depend soiety ' upos 9
mansgsmsnt-the Only protection to the bm hoft
but the Illinois banks, In addition to the guar
te are forced to deposit insrsss paying STATE O. ted
between banking ia Illinois and Connecteut or AsssAc
setts Ia Just lin the former State the banker nj
deposit securities which cost him $l0Soo or more,
obtain circulation Of slice ooo in the latter ststes
Legislature charters hank with capital Of 500 900
majority OF which ceoitsi is oftensr paid In stock mol
And npon the capital the hank issues three to Ave
dred thousand dollars Tho "luck and chance" circr
ton Of these Connecticut Massachusetts banks,
peat goes West =. from three 10 six per cent intere
and usuIps b. legitimate or home field OF tee HID
banks-driveE their circulation In for COIN therefore
Illinois banker mus. his circulation with the utm
caution and ut the rate OF interest that he wo
use trsce-fis specie circulation In specie loving C.
mnnity, cannot compete with the deprecated crcuat
Of Eastern banks Instead Of sending out shnplaste
suppose the Eastern banks were to loan specie to
York and Bost<n sPeculators In Western produ
What would b. the rateY In this event, the
Ipois banks could their circulation probably
home, and they would not look elsewhere The "a
reasoning which dscards Western circulation In the e.
applies equally to Easern circulation In the West
matter Of exchange Ia nothing the farmer; to cow
the Eastern bank notes. which he has received 10 pi
ment for bis producet into gold, he must submit .
these circumstances the circulation Of tho notes of
Illinois banks In the East not appear TO me to be
fiightful outrage that IT ia ,epressnted still am not
guipg urging the prcprety Of it. Ithink the cirou
ton Of either section should be kept at home but tn
is any intrusion don't understand why it L. not gu
heinous and outrageous in one - the other. If 1t
hard for the merchant mechanic here to ssand abs
Of to &c. on Illinois bank paper secured It IL elua
hard for the IDinais farmer to stand the same, Of
greater shave the and two dollar shinplastera
OF good Western banks, have confined my suggestit
to the State of Illinois, for the simple that my
EonaI knowledge goes no further Ut the same tina, m
knowledge derived otherwise, have more confidence
the legitimate banks of Ohio and Indiana thsnI have
the New England bants-more confidence that the b
holder Is safer with the former than the latter.
Ny object 10 not advocate the circulation Of Wes<
bank PAPER here or Eastern bank psper there, but
suggest submit that there are s0Hae good banks In
VESTS good as any in the Esst-.1nd that common
tegence and common honesty forbid the Wholesale 4
updiscriminatipp condemnation blackbaling recon
iLduIged in by the press Of this city. WESTERNER
Stock Ecxrv,nnoN.