Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1857-11-07

4 Bullion bank for issues and collections.
Among the various plans proposed
for . reliable bank, the following pos
sesses some points Of superiority which
recommends it to favorable considcra-
ton. Without endorsing it in full We
present it to our readers As one Of the
best modes which have been presented
for the amelioration of the banking sys-
tenn. The people OF Iowa have as deep
IN interest in banking, at the present
time, as any community in America
The next Legislature, on which will
devolve formation Of this system for
this State, is unfortunately Black Re-
publican, and experience has Taught
us that Of all parties which haze ever
cursed the country, the Black kepubl
can is the last to be entrusted with
the purse or the planning of system
offinance. The next Legislature must
be closely watched, or we shall be sad
died with system which will leave us
1t the mercy Of the Mattcsons, the
Gibbons and the Galphins who lead
the Black Republican party. Conscious
that the present Is the last lease of
power they will ever hold we may cx-
pect from the Black Republican ma.
jority, an organized foray on the Treas
ury Of the State and the pocket Of the
people which will throw all former
peculation in the shade. The plan
proposed below may not be applicable
TO Iowa, i'll her present condition, but
it seems to us to be emincntly adapted
70 the great financial center of the
Union; as such VIC commend it to gen
craI perrusal:
PLAN FOR BULLION BANKING FOR ISSUES AND
COLLECTIONS.
Let an institution be chartered with a
capital Of $l2,O00,O0O whose only business
shall be-
First-to issue circulation based entire
ly on specie deposited with it dollar for dol
lar, and held solely for its redemption, and
2d--To collect debts for banks, merch-
ants, DC, in all parts OF the country. at a
commission never exceeding the cost OF trans
postatior of the specie and interest for the
time it takes to novel it from the place of
collection to the place where the draft or
note il received for collection.
To insure faithfulness, and to provide a
gainst fraud or misfortune in the manage
ment Of the institution, 80 IA to inspire the
community with entire confidence in its
safety, let ten millions Of the capital be
loaned TO the State land it now wants mo
new on interest, say Of six per cent, This
loan not to be transferable by the bank, but
to be held by the State a. "A sacred trust
to guaranty the fidelity of the bank in all
its transactions-the bank TO receive inter
est semi annually under the strict superS l.
sion Of the State authorities.
The other two millions to be kept by the
bank to pay balances Of collections between
different points, and thus save the transpor-
ton Of specie.
At the winding up of its affairs, the bank
TO receive back its ten millions in stock OF
cash, at the option of the State, if all its
transactions are found to be right but il
any deficiency occurs during its existence,
the state to sell at once enough of the stock
to keep the capital sound, and to pay back
the balance at the expiration Of the char
ter as above, for division among its stock
holders
Here would be perfect security for the
circulation, and for the collections. 1t
should not be allowed to advance a dollar
on paper left for collection till it is known
to be paid, nor TO loan dollar on anything
Except to the state as ahove) but leave the
loaning Of money in all other shapes to banks
and individuals so that it mnst derive all
its profits from interest on the loan TO the
state, and from its commissions on collec.
tions
l think very satisfactory dividends would
be made from these sources.
II could have agencies in all parts Of the
country for collections, but need have none
for receiving deposits, as they might not be
allowed by the states, and this is the natur-
al point for the accumulation of specie.
Its advantages over private brokers are
apparent, and all difficulty in exchanges all
over the country would be for ever at an
end
Banks would as soon discount note or
draft due at St Louis or New Orleans as in
New York, if satisfied with the names on it
here, because they have at hand perfectly
safe means ofcollection.
A paper circulation would be furnished
which would be beyond all doubt.
With this institution such state Of things
- now exists would be impossible
The public are Disguised with promises to
pay on demand, which, if attempted to be
generally fulfilled, brings ruin not only up
on the institutions that issues the promises
but upon the whole community.
Let, then, such an absurdity be abolished
and no bank nOtes allowed hereafter to be
circulated, except such as represent specie
dollar for dollar, locked up in the vaults OF
. cafe institution, at all times ready to re
deem the whole of them, and which the in
stitution is never to use for any other pur-
pose whatever.
What hurt the Minnesota Republi-
Nana Was n tho G;r;urs0 vrho co,,,