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

Torrance OF his religious duties, visited Indian
church within his jurisdiction, and appeared among
the expecting crowd in citizens Dress but without
commanding respect or attention. In his chagrin he
asked their experienced agent the cause, and was
advised to appear in his clerical robes upon doing
which he was greeted with the most profound
spect and veneration. Duly approaching the cause
producing this wonderful change banks and bankers
have not failed to profit by it, Buildings and furni-
ture every way adapted to business, if wanting in
exhibitions of unlimited wealth, are not, with few
exceptions, deemed suitable for their use, because
they too much resemble the plain man instead of the
decorated official. Banks in the habit of ex-
haustng fortunes in banking houses in sense
necessary, except to impress those not familiar with
their operations with exalted ideas of their grandeur
and wealth This effort at show often attends con-
Germs not worth dollar. Some of the most frothy
affairs that have risen to the surface here have made
more show and hustle than an old private banking
house which never issued BILL but always dealt in
real money and could at any time buy out acre of
pretenders.
In Philadelphia the first bank that failed and set
its creditors at defiance sold last winter its old bank
inghouse to the government for post office, which
it had occupied for over half a century, for two
hundred thousand dollars, and has since been erect
ing new one in more agreeable location and at
great cost If the money that the Bank of Pennsyl-
vania has unnecessarily spent upon her new bank
inghouse had been reserved to pay its liabilities, it
would hardly have been the pioneer in refusing to
pay its debts which is simply legal bankruptcy
mn. IL. IL H.
appearance of great wealth, apparent almost every
where carry with them their commentary.
But there are other causes why many banks fail,
and they are natural and plain ones. They start
without real capital which they can use, without
which it is difficult to transact large banking bust
ness. They draw about them large number of
employees, and set up state and dignity equal to
mllionaires or State officials and quarter upon their
income no small number Of relatives and favorites.
But the great cause of failures is found in msap-
plication Of their MEANS The officers and their rel
atives and favories require the of the capital
in their business or speculations. Forgetting that
banks of discount not loan Offices and that their
great legitimate purpose is to enable men having
real business paper soon to mature to anticipate
their MEANS they violate all proper rules of banking
and loan for long periods to spectators and those in
volved in all the hazards of uncertain business with
the hopes Of extra profits or with the design to
obfige some particular friend The Bank of Penn
sylvania is said to have accommodated, on loan, to
one favorite some three hundred and fifty thousand
dollars-thus devoting to one failing establishment
no small portion of its whole capital 1t must have
forgotten or failed to profit by the cotton specula-
tons which proved so disastrous to the United States
Bank. Others engage largely in stock transactions
and in other matters of mercantile rather than a
banking character. There are not a few, and espe-
cially of private bankers, who engage in land and
corner-lot and various wild speculations. They can
show more paper cities than gold eagles, and are
more ready to expatiate upon the miracles of land
appropriations than upon their ability to meet their
own liabilities. The desire to become suddenly
rich without the toilsome progress of industry and
economy, by those who combine sanguine tempcra
ment and large hope on the one hand and the desire
of calculating banks on the other to realize large
income from the use of their costless credit often
leads both parties into temptation and ultimate
ruin, while the innocent public largely helpless
sufferers. ...
In some vicinties there may be some show of apol
ogy for banks not meeting all their engagements with
the punctualty which they usually require of heil
debtors but there can be none in this District
where everything, if they have capital, depends
upon the will and ability of those conducting them
The legislative and executive government are 10
Gated here, with large o""ts - Wy o.
4,,IU the expenses of Congress, the Presi
dent and executive officers, with their thousand
clerks, of the erection and extension of public build
ings and the discharge of miscellaneous claims, arc
met at the treasury in this city, unless otherwise re
quested at some sub-treasury where the government
may have an excess of means. The payments here
from the treasury are all made in gold and silver and
amount to several millions annually The amount
must be far greater than its banking operations The
business of tho city is based upon the expenditures
Of the government, and while these are substantially
uniform and regular there be earthly apology
for suspension of specie payments by banks and
bankers in it, Within the last dozen years this city
has been the nominal locality of some twenty two
banks of ISSUE not half of which had ac-
tual habitation here but bills dated here and
put in circulation in New York and at the West and
were entirely frauds upon the public. dozen 9th
ers have been put in operation among us by known
persons, majority of which without capital
or means to bank upon, and have since passed
.,vo,, Elya mora atrikinp fctiona IN which ,o