The Council Bluffs nonpareil. [volume] (Council Bluffs [Iowa]) 1857-1867, 1857-10-17
Dashs a.A sheis ,1ensra1,xl.e Iua,.enes.

Dashs ard sheis ,Desassalixisg Innsencs.
We have heretofore ssntsuod hat ne Induces e.
ssesed upsa the oommsaisy By hank. evii consiasai
f0e evil esussts In their beiag able while ths public
Conscience sustain then, 70 incresse the circuiafng
medium sny ameuat md b. . ping 70 snconr1ge the
Bsgls.
In our Judgment, We do mot think that the
influence exercised BY Banks, as class, sis
evil continually" We agree with our neigh
Dor that the "evil consists in their being able
while the public confidence sustains them,
to increase their circulating medium to any
amount" thereby encouraging the "wildest
kind of speculation, gambling and swim.
ding" This is not the result Of legitimate
banking business. It i the fault of the
false and rotten syssen. Of banking which is
too generally tolerated. It is well-known,
that there is no country in the world, in
which banking privileges are so vilely abused
and perverted, as in the United States
There is no country in the world, in which
banking institutions are permitted to be
established upon such false principles, and
rotten foundations as in this country. Here
in lies the evil. If wehad nothing but Banks
in the true and proper sense of the
word, there would be no 'sdemoralizing in
huence" attending their existence. Banks by
their charters, should be expressly restrict
ed, under heavy penalties to the transaction
of a legitimate banking business, and in
issuing an adequate circulation, they should
be compelled, under penalty Of immediate
prosecution and forfeiture Of their charters,
to observe to the very letter and spirit every
provision designed to protect the bill-hold-
ers, as well as their depositors and stock
holders. They should be based on cash
capital fully adequate to all the exigcncies Of
the business, in which they are permitted to
engage. And above oil, they should be
strictly confined. by the express terms Of
their incorporation, to their proper business.
They should not be permitted to buy, sell,
or in any way deal in real estate. They
should be prohibited, by heavy penalties,
from embarking in Stock speculation. By
encouraging Banks of this characterize
curely protected by legislative enacsments-
it will hare tendency to do away with the
swindling practiced upon the community,
by the Brokers. 1t is nonsense to oppose
Banks, and by so doing to build up irrespon-
sible brokers. If we could have Banks of
issue, wherein the bill-holder and depositor
were protected beyond the possibility Of
loss, these money changing institutions
would disappear-their Occupation like
Othello's, would be s'gone.' ..
The banking system of the country, as
general thing, is corrupt and fraudulent
one. Banks of issue and banks of deposit,
are to great extent, ingenious contrivanees,
by which u few adrot individuals, as bank,
engross the money of the people-the hard
working, honest, laboring man, mechanic
and artesan-into their own hands, for the
purpose of the most hazardous and reckless
speculation. They are mammoth sink
to engulf the honest earnings Of the people
tide the instance cited by the Bugle, Of
firm in Burlington, viz:
I'VE wonder how men possessing one spark Of moral
honesty or honor--hvw who not wholly dead to
shame pursue such course as has been pursued
by Greene Thomas Il Co How men can close their
house with the deposits Of their negheors in the pos
~ partner and then open their house
and commence business upon the deposits IN the hands OF
the old concern. Such swindng is too bareiaced, and
would be surprised to hear that their house had
been Quilted the swindling pfopre;ors made TO dance
upon the wind tho haEsmans hornpipe, as Just pun
ishmcnt for their swindiiug operations"
If the above is true, it affords striking
commentary upon the manners and the times,
and affords ample ''scope and verge enough"
to induce the adoption of some measures to
protect ourselves from such barefaced swim
ding. What makes the matter still worse,
is the fact that this sort of fraud is openly
encouraged by the legislation Of the country,
which should rather protect the citizens from
such depredations than to become particeps
criminis thereto. This species Of swindling
is not confined to private bankers and bro
kers, by any means. Banks of issue are
equally culpable, and to a greater EXTENT
This is owing to their being founded upon
a fraudulent basis, and not sufficiently
guarded and protected by legislative enact
sents. Our system of Banking must be
purged Of its impurities and corruption,
before there will be any safety for the people.
This poison at the heart taints and corrupts
the whole system of business operations to
its remotest extremities. That we shall
continue to have Banks, we presume no sane
man will for n moment dispute. That being
the case, we should by all means endeavo or
to have responsible ones. At this time,
then, i. is especially important that the peo-
pie of Iowa should look to their prospective
interests, and should use every endeavor and
precaution to guard against the establish
ment or creation Of irresponsible banking
institutions of any kind, whether of issue,
accommodation, deposit or discount. They
have suffered sufficient Of late, to induce
them to guard their treasures well hereafter.
BY the eprovislons OF the New Constitution,
the next Legislature may draft Banking
Law to be submitted to the people for their
approval. In the framing of this law, too
much caro- cannot be taken. If possible it
should IN every respect answer the demand
for sound currency system, and for the
entire safety Of all depositors. If such
Banks can be provided for, and We see no
good reason why they cannot-Banks secure
in every particular, their business legiti-
matsly defined and protected, and their
issues limited, and guarded against any pos
sibility of over-issues-we are decidedly in
favor of their speedy establishment. We
believe they would in a great measure do
away with the system Of private banking, so
extensively practiced in this State, in too
many instances, by irresponsible persons.