The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-10-08


airs Of high importance and dictatorial cOnse-
quence, and assumed to be offended if its import
ance and solvency were questioned, or even limited
at The Bank of the Republic, Bank of Columbia,
The Merchants and Farmers Bank of Statham,
Smithson & Co.. The Bank of Seden, Withers, * Co..
and Others have passed away like the mists OF
the morning, and many of them before the public
could learn their names business localities, and
the Bank of Commerce and Paro & Nourse have fol-
lowed in their career of bankruptcy injuring some,
running others, and largely taxing the public by
means of the want of real value in their bills and
unredeemed promises TO pay. Ii required some
credulity for wellinformed men to become deceived
and defrauded by these baseess concerns. But with
the multitude some of them, by artful contrivances
and broad misrepresentation succeeded i'll acquiring
a considerable degree of credit, which more
than equalled in the magnitude of the consequent
disappointment. But there other establish
ments which have sorely disappointed the citi-
zens of Washington
More than forty years ago Congress chartered
banks in this District, including the Farmers and
Mechanics Bank of Georgetown the Bank of Wash
ngton the Bank of the Metropolis, and the Patriotic
Bank In the act comforting charters upon three of
these stringent provisions incorporated to pre-
vent private banking, to to the charter
ed banks monopoly These were badly bent un-
der the Establishments of the Bank of the United
States in 1919, and finally failed under its unhaow-
ed embrace in 1897 and refused to pay their debts
Their supplcations for extension OF their charters
resulted in limited prolongaton upon condition that
they would pay bills under five dollars in specie, and
would resume, at specified time, specie payments
upon their bills. The charters of these banks final
ly expired in 1874, when Congress legalzed an as
sgnment to trustees to enable them to collect debts
and close the concerns. From 1874 instead of wind
ing up their affairs contemplated by the act OF
Congress, they have gone doing banking business
apparently as they did during the life of their char
ters They are not banks, but mere private estab-
lishments, by whom owned OF conducted, or who are
legally liable in the courts for their debts no one
knows and few, if any, can find out.
| They issue bills in the name of bank, when IN
law there is no bank. There is no public and ac-
knowledged copartnership, and the whole business
is transacted in the name of corporations which died
thirteen years ago; of whom debts can be collected
| our wisest and most learned men do not know But
one thing is known and painfully felt, and that 49,
| that those who have managed their business have
refused to redeem their bills pay their debts and
individuals and the public have largely suffered by
| it. They profess to have the ability, but under
false and absurd pretence refuse to pay. Those who
have lent them gold and silver get nothing, and
those who have taken their bills instead of current
| coin find that they will not bring their nominal
| Cow FIVE ropta ont the n
Instead of helping the public in the hour of need,
they have deeply prejudiced and injured it. That
| they could with reasonable management have paid
specie for their bills and debts, we all know. They
expect their debtors to pay them, while they refuse
to pay their creditors Their course has injured the
value of the property and means of our people to an
amount nearly, if not quite, equal to their capital
Since 1874 their whole operations like those OF the
fancy bankers have been in direct violation of posi-
tive enactments of Congress. These laws made
to give them coveted monopoly in banking in the
District and remain in force and now apply to them
as violators, subject to penalties and forfeitures
The act of 1917 declares it unlawful for any unchar-
tered banking company, association, or partnership
to discount in the District notes securities for the
payment of money, or to issue bills, and imposes a
penalty 1t makes it penal to sign, countersign, or
endorse such bills, notes, security or to put them
in circulation These provisions have not been re-
pealed and are still in force, and directly app
cable to those managing these establishments, just as
much as the laws which forbid forgery apply to
those who counterfeit bills. They seem to rely, as
they did in 1878, upon the combination of NUM-
bers involved in the interest to protect them in
an open and fragrant violation of laws made at their
own instance and for their own benefit. Whether
those managing these unlawful establishments shall
be permitted to continue their violations of the stat
ute when the six-penny cnprits are sharply punished
is q question which cannot solve, although we
appreciate the evil that is inflicted upon individuals
as well as the public. No show pretence Of wealth
or personal advantages compensate for the evils
inflicted by the banks and associations we have de-
scribed upon their debtors and the public at large
3. THE CALIFORNIA STATE DEBT.
gentleman who has recently returned from Cali
forna and who was attached to the Judiciary OF the
STATE. ;rarns the New York Herald that the course
which the State must pursue in regard to her pecu
mary obligations viii DO fono~~s, yin. Tie puvpl,
having consttutonally endorsed their legality til,
bonds will all be called in, and new ones issued il
their stead covering the principal and all past due