The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-10-24
BANKS AND BANKING-coNTINUED.


BANKS AND BANKING-CONTINUED
We have shown only portion of the injurious
consequences resulting from paper currency.
Those falling upon debtors we have explained as
well some of the advantages resulting to the cred
itor. Those which fall with crushing weight upon
the laboring portion of community have not been
specially referred to. Thousands of individuals
have been induced to leave their own independent
personal business by the high wages offered by 9TH
to enter their employment. The inducement to
these steps grew out the paper-money system. For
time all goes on well. But when the consequences
of this unreal system visit themselves upon the
country laborers, by thousands and tens of thou
sands are thrown out of employment -.ithout the
ability OF earning the means of scpport for them
selves their families. Recent events have demon
strated these consecuen in a manner to awaken
the most kind and humane feelings which actuate
the human breast. No heart can be dead to them
while 1T cherishes the impulses of humanity. The
fatal consequences flowing from our expansive and
contractive paper currency have occasioned wide
spread ruin among thousands who have no possible
agency in manufacturing or circulating, and who do
not profit by it. Statistics, apparently well found
sons, whose families include at least two hun
dred and fifty thousand "a quarter of a million)
have been thrown out of employment In consequence
of the fluctuating qualities of our paper currency
Some partially and others wholly thrown out of
business. Why is this ? Formerly these extraord-
nary results were most unjustly charged upon the
government. But now not sing lie man. whether alb
stractionist or politician, can assume hardihood
enough to charge the present explosion of the banks
to the action of the government or any of it's officers
1t came before the croakers had time to prophecy or
charge the consequences upon anybody except the
authors OF it, The banks owed, and could not, or
would not pay, and portion of the consequences
naturally fell unon tnn'n TA~aa who would excuse
'9e agree TO charge the evil results upon
c. IL Is one among the extraordinarv
iacts developed by the times that brokers can
sell gpecie when banks fail to pay it in REDEMPTION
OF their bills or i'll cancclling their debts due de-
posters This seems truly strange when the banks,
IN their recent reports, showed large amounts of
specie, while there is no evidence that brokers had
any. Whatever may be the fact the public mind ia
hrmly made up that very many of the banks use the
brokers in selling their specie at round profit, in
stead OF applying it to pay their honest debts to bill
holders ana depostors, or that through some instr-
mentality many of them loan at one, two. three or
greater per cent month at places other than their
counters The fault is, however, more with the avg
tenn IMAM with individuals concerned with managing
1t, however much they may blunder or act from
questionable motives A proper system of currency
cap neither work badly from individual blunders nor
personal designs, but will be proof against both and
every other untoward consequence. One of the ex
raordlnary incidents of our intolerable system is
manifested in the case of the Harpers in New York
VINO are reputed to be worth over q million of dol
lars beyond their liabilities Referring to them. the
New York Courier says
- With bonds and mortgages on productive real es
tate IN this city for than four times the amount
asked for, and bills receivable for ten times the amount
and only asking to have their line of discount restored
within 600 of what it should be- and with the solemn
assurance that without the aid asked they must suspend
and discharge between six and eight hundred persons
IN their employ they coldy permitted to 40 by the
board and thus compelled to bring distress and want
among several thousand persons who were directly de-
pendent upon them for employment Who IL benefited
by this system p
we answer, most clearly not the laboring commu- |
nifty, or those who by honest industry earn their
living. The responsibility is with those who made
the constitution and laws of the State which permit
the existence of such system instead of the one
provided in our national constitution, and in viola
ton OF its most solemn provisions Whether the |
bank could have accommodated the Harpers or not !
we have no means of knowing. If it could have re.
iieved them, and saved from want the thousands re-
ferred to by the Courier, denunciaon can be too
severe to be applied to its managers However this
may be- this case proves that the system is most ia
tally defective. If the bank could not relieve Il
showed that the system was fraught with inevitable
disappointment
ii 1t could, and did not it shows even a wor.e and |
more fatal feature. The paper-issue system had Il
seems, been in the habit of affordno tho uau.,.u.
some thousands of dollars of discounts From ,.a,
experience they had been led to expect connuanca
OF likefavors. They asked even few thousands
less but were cut of. This does not seem 20 b |
their fault nor can we say it is that of the bank of
whose condition and necessities the public arc not
fully advised. However all this NAV be Il ia clear
that system that produces such consequences can |
not be rightly constituted-onc which refuses ;ts |
usual aid to house having. such abundant means
and such strong claims 20 continued accommodations
and thereby knowingly throws out Of employment such
number Of men, and plunges in poverty and distress