Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1857-01-27
HAN Ne asSd Hanktau,


0sion and works Plain AMI clssr. l. viii he ,.,a-
~ applied for soon. '&W'f
asa0ks aud Ranking.
The system of Banking rs conducted
in the Western States, is one Of the
most stupendous humbugs ever alopt
ed by any people. In the older State,
and under well rcgula,c! system Of
legal restraints, banking may he usc-
fnl auxiliary to commerce aud trade.
and even then, the facilities il affords
for unprincipled men Ia comm, rogue
~ with, is q SAD draw back t. the I-i
efits II confers upon the great bod, Of
society. There. either ii soun,i specie
basis, or stock sccuiity, givee - I'LL
holders some reasonable assurance thai
the institution of n bank viii la.t i,r
some considerable period ot tame. and
even then, all safety !. lcpeldeu' upou
the honesty, "apa 'lty, and prudence, 81
bank officers and directors IN last.
ern cities, specie doe not command a
premium. and from the Inconvenience
Ofcarrying il about the person, pr RISING
it in buying anI selling. safc ha,k bills
are preferred. and hil> OF c>chaue,
more frequently used Will all the
checks and guards that the object u
around tie banking system. not 4 wear
passes, in which We do not hear oftl,'
failure of a number Of banks. wi,h
consequent loss Of hundreds 81 thou
sands o; dollars H. toll hul.rr.. n
stead Of being what they arr iutru@c!
10 bc-mcre hanks oi accommodation
and discount. they are t"o irc,IHs ntlv
converted into daetn e 4mrhiars 1T
the benefit Of the managers and stock
holders, and the bills Az >cii. abroad
from the places of issue, hundreds at
miles, to some Western or southern
bankers, to be put in circulation. where
they are not soon expected H. return
for redemption.
The banks thus scndirr away their
bills to be loaned cut aud kept out,
derive a much greater profit, than they
could do by discounting the PAPER Of
the merchants and business men in the
immediate neiehlorhood .. the bank.
and many bank l'atrous are thus dis
honestly deprived OF accommodations
IN those seasons oi pressure When nc
Communications are most needed. What
ever may be the advantages or disad-
vantagcs of general hankn. laws in
the older States, there are ,perial rca-
sons for the utmost caution in the es-
tsblishment OF banks OF Issue, ia the
frontier States Of the West. The yrea,
maelstroom of the United States Land
Office, is constantly sucking iii every
dollar Of specie tina, can he obtained,
and acts as huge incubus upon the
banking system. by compelling banks
Of issue to either send all their bills far
away from home, or to lock them W
in their vaults and issue bills of other
bankA not redecmablc in gold at thcil
counters. This converts Western
banks into mere bankers offices. OF
banking houses, a. the, are called in
Iowa
The government lands are sold for
specie alone, and purchasers of land are
compelled TO buy the gold at prcmi-
um Of from 10 per cent. or bripg
il with them from Eastern banks. II
. bank of issue should he opened in
Davenport it would o; necessity be
compelled 10 redeem lie bills in gold
and silver coin. IL such All event. its
bills would be eagerly sough, after by
those en- route for the purchase ofgov-
eminent land. and presented d, the
counter Of the bank to be redeemed in
gold.
This drain would be- constant and
unremitting. The gold thus obtained
would not Goat back to the bank from
whence it wss taken in . speedy but
circuitous route. but fall with q Quiet
ring into the iron chests Of Uncle Sam.
there to remain until the exigencies
end expenditures Of the government,
should call il forth. And with this
dssin upon bank, We ask in all sin.
sssity, what institution could long sur
vivA without . constant importation
eespesis ton the East at heavy char.
~ asd ssisous dslaysi Look At the
lIoCk lalsnd haAk asd We see 4 com.
plses snsapli1SaAloa y Ne tsiiy u ~.
1890 ~ lapkl = iasss IL M