Litchfield enquirer., 1857-06-11
OBJ &itt5dtlb enquirer
Litohdeld. Conn, Thursday, June IL, 1857


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A correspondent of the Hartford Press complains
bitterly of the present manner Of conducting our
Banks, and hopes that
the project Of raising the legal rate of interest to
seven per cent will not receive the sanction of the
Legislature The only effect will be to give to Banks
ana money Lenders sun greater dvantages than they
already possess for taking the life blood of business
men As things now are, the policy of the Banks is
snch as to operate most dsastrousy to the business
interests of the community and for the Legislature
to give them still higher vantage ground on which
to base their shaving operations would be utterly
inconsistent with due regard to the public welfare
Now this is very we'll ON one side, but the entire
community is not composed of manufacturers and
merchants. There widows dependant upon the
dividends of Banks, there institutions, minors
and small farmers, to whom any reduction on the
part of the dividends their Bank stock great
an injury in proportion to their means, as the lirn
tation of large manufacturers line of discount.
The mercantile and manufacturing portion of com
munity claim that Banks should be institutions
rying on business especially for their benefit that
instead of sending money abroad, where large rate
of interest can be obtained or employing agents out
Of the State to negotiate paper they should keep
manufacturers and merchants. The retired merchant
living upon his income the estate looking for its an
nual dividend, the Spectator who has bought his
stocks at low figure, claim to the contrary, and
would shorten altogether the line of discounts at
legal interests.
There can be no question, however, that the OBJ
ject of Ranks is to benefit to reasonable degree the
mercantile and manufacturing classes Without
their assistance the merchant and manufacturer
could not sustain themselves. They are compelled
to give long credits, they buy credit and to meet
their engagements must receive ass istance from the
Banks. We do not believe, however, there is sin
gle instance where the merchant and manufacturer
is satisfied with his line Of discountwhere he does
not complain because the Bank restricts him and t
yet in too many cases companies and individuals are
credited beyond their ability to pay Now while we
most earnestly desire the welfare of our manutactur-
ing interests, and plainly perceive how dependant
New England is upon their prosperity, we cannot be-
eve that Banks should contine their entire business
within the limits Of the legal interest Of the State
We however, agree with the Press that no particular
benefit is to be derived from increase of the pre-
sent rate of interest The Banks already, says that
paper
'.contrve to get from to IL per cent interest from
those who need their fvors, and this on the basis OF
six per cert Raise the interest to scven and what
will be the result? fair legitimate business at that
rate? No but the same price for checks, and one
per cent. extra interest.
This is true enough, and viewing it in this light
there can be no occasion for the increase of per
cent. The Banks under the present method of con-
Quoting their affairs yield large dividends and if an
alteration in the rate of interest will injure the
manufacturing classes why increase it? They GER
tainy should be considered before any other class of
our citizens Hartford Waterbury, indeed all our
towns and cities their principal prosperity to the
existence of mills and machine shops in their midst
and their welfare Is Immediately connected with the
welfare of the country. Cripple the manufacturer
and you cripple the cities cripple the cities and the
farmer suffers also
We hope this matter will be seriously considered
While conceive money to be a merchantable arti
cle and should be subject to restraints than
any other portion of commerce, we cannot concede
the privilege of corporate bodies of monopoly, tor
a moment entertain the idea of an alteration in our
financial affairs which shalt in the least cripple the
resources of our merchants and manufacturers