Western Reserve chronicle. [volume] (Warren, Ohio) 1855-1921, 1857-10-28
Gatesteru 3esrrbe Gbronide
c. 4. ADAMS.
WARREN. WEDNESDAY. OCT. Is
aaass AMI Brokers.

banks and draw out the specie. Tsey
her sci! the specie at a premium, take
bank billsm return; again. draw out III,
specie and sell it. Tn y thus make
profit for themselves, but to the commu
nifty atlarge. they are perfect n~nisances
During the prevalence of a money pres
sure. or panic. when specie sells at 8 t.
10 per cent premium. as was the case
few days ago. one of these mea, with 8
capital Of a thousand dollars, may make
500 per day. if he can exchange hi.
money and draw out specie once in TWEEN.
ty-four hcuIs-while he is st the same
time diminishing the ameunt of money
in circulation just ore thousand dollars
per day. because the specie does not en-
Ter into general circulation, but is hoard
ed up, or sen off TO the cities &c pay
debts or buy exchanges.
The banks cannot discount their own
paper, because it will be Immediately
returned upen them for specie; business
men can get no ank accommodations;
" or three per tent. per month are the
ruling rates in The streets; small debts
are unpaid; money is scarce; prices fall,
and the whole community suffer. The
tighter the money pressure, the greater
the scarcity. the higher the gains of the
broker. He lhriyes and fattens upon
the misfor.uRes of others. In MANY
parts of the country, the people are wax
ing up TO this matter, and by force OF
public opinion. are working a change
Within the last two weeks, we have read
OF a dozen instances, where one of these
brokers had visited a town TO draw spe
Gle from the bank, before he could &C
.complish his purpose, be was waited up
on by a delegation of the citizens. and
politely informed that his presence was
not needed in that vicinity, and that in
tier opinion. an immediate change of
scene would be beneficial to his health.
Tie friendly advice was always taken,
and the gentleman would carry back his
bank bills, aud relern home a wiser
man.
louisville Courier has an able
article upon this subject, from which we
extract the following:
We consider asserting brokers, who
collect the notes of our banks and de-
mind the specie. in these troublesome
times, as a curse to our prosperity
They do more harm in such times as
these 10 the business community, than
ANY other class of men. and We should
ike TO see them denounced until the at
mosphere of Louisville. yea. of all Ken
lucky, would become too hot for them to
breathe with any degree of comfort.
We are told. however, that these bro
kers are pursuing a legitimate business,
and that they have a right TO buy up The
notes of our banks and demand The spe-
Gle. We do not deny that the laws Of
the land protect them in their vocation.
It is possibies indeed. that they do some
gooi;b by acting asa check npon the banks
of issue. 1t usually turns cut, however.
that their check acts most sirenuously ,
iIst at the lime when they do TIE most
harm. The fact of their business being
legitimate, moreover, does not make it
respectable aud proper. 1t is legal TO
establish negro pens and 10 buy and sell
slaves in our midst; and yet we should
not like To engage in the business.
There is no law against a broker re
ceiving deposits from the poor and needy
up to the hour before he closes his doors,
and yet we cannot approve of such con-
duct. The law permits a soulless Shy
lock TO lend money and sue his debtor
when lie can't pay, and buy his property
under the hammer at half its worth, and
vet we must condemn all such acts as
these. Neither do we approve of the
course of brokers, who, in these times
of financial disaster, gather up the notes
of our banks, aud send them off for gold,
although the act is not. forbidden by the
law of the land. They make money by
the operation, but they do it TO the ruin
of the business community. They ccm-
pei the banks 10 contract their issue,
which at once effects the ruin of those
business men who have depended upon
a more extended circulation.
1t is possible, however. that the mer.
chants and manufacturers and mechan-
les who deposit with such brokers, are
as much to blame as the brokers them
selves. They go to the banks and bor-
row money, and deposit the same with
the broker. The broker at once assoris
the money, and sends off the notes 10 the
different branches for gold. In this way
the deposition furnishes the broker With
The means of injuring the whole commu
nifty. He enables the broker 10 carry on
n war with the banks. in which The mer-
chants. manufacturers, mechanics, &c
are the soldiers, who get all the knocks,
and fed all The bruises. and die all the
deaths.
II is plain that the deposition thus furr
The broker with capital on which
TO act. He enables him 10 make the
banks contract their issue and thus fail
to extend accommodations TO the COM
He also lends The broker mo-
ney with which to gouge and chisel him
self. He may to day deposit a thousand
dollars with his broker, on which he will
get no interest. and TO morrow can't Dor
row of him five hundred without paying
ex brilliant usury. The broker takes his
money and buys gold or exchange. and
chen sells the same TO him al r%uinous
rates In other words, the broker has
the depositor's money lying in is draw
er, AID he takes it and gets gold with it,
and shen sells the gold at from 3 10 5 per
cent. premium. This is one way these
brokers have of paying interest on de
and it is the only way in which
fail to pay interest.
We do not know that We have any of
.his el,es Of hroEers in our city. We