Delaware weekly Republican. [volume] (Wilmington, Del.) 1841-188?, 1857-10-08
For tho Delaware Rennblioan

Mr.. EDIToR;--W When crisis in the money
market occurs, which seems to be periodical
in our country a hue aud cry israised against
the banks. &C They are accused of lending to
shavcrs; neglecting their legitimate business
loaning half the capital to single firm" Tub
lie indignation is excited, and a run on the
banks encouraged by the editor OF the news
papers, who should be conservative in their
views, and who should use the press ut their
command, to soften rather than aggravate the
excitement, Banks should be treated as indi-
yidnals; they are corporations managed by in
ulvlduals who are liable to error in judgment
the same as the individual trader. The MGR
chant or manufacturer who sells on credit does
so with confidence in his debtors ability to
meet his obligations; he purchases and sells ON
credit; he offers his debtors notesto the banks
Tor discount, when he requires money TO pay
his own notes falling due; unfortunately Tor
him, he rs induced 20 give longer credits than
prudence dictates. Knowing that the banks OBJ
jeet to discOuuting paper having four months
to run, he will sell at six months, nine months,
and even twelvemonths credit. ThecUnsequen-
ces is inevitable he goes into the hands. OF the
shayers-pays usurious interest, and abuses
banks, accusing them with lending their money
to the shavers, because the banks, as a RUE,
decline discounting paper having more than
four months to run, and as the sharers nave
the money and draw their checks on the banks,
| they must get accommodations from the banks
| .4nd pray auhy should they not if their paper is
| good, short date and the bank has the money
| to lend.
The banks are chartered for lending money.
Long experience has taught bank directors thai
discounts OF short paper, that is constantly ina
| turing, real business paper TO BIO paiu ~ ma
| turity, and not what is called accommodates
| paper is the true legitimate profitable business
of banks, whether the notes are offered by
| manufacturer, mecanic or ShaCcr. The tru
shaver is considered odious, and the man Wit
buys and sells notes at usurious interest,
sharer and is held up to the community as on
guilty of crime Would shavcrs exist
men would contne their sales on credit, t.
what they know is discountable paper anu II
! not the men who cry out against him Tor II
king nsurious interest create the evil, h
selling on long credit2 Let each man in III
community look to his own conduct in thi
time of trial, and let him that is gultless cas-
the first stone.
Banks are chartered iorlending money mt ID
gal interest. Experience has taught director
certain truth, which if adhered to, banks hay
prospered, the community benefited aud con
sequently satisfied. Among other truths ne
cessary b success in banking is discounts Vi
short business paper, shonld the offerings TO
discount Of what is called legitimate paper
not equal the means on hand, would there
be any great crime in the board lending tn
surplus 10 shaver? Would any man retuS
10 sell his merchandise to him on that account
| Would he ask any other question, is he good
| That answered in the affirmative is enoughi III
gets the goods. The same man oilers bushes
paper At bank of undonbtcI character. VIII.
| should the bank refuse to discount the paper
any more than the dealer in groceries or dr..
goods should decline to sell TO himi
The banks are to be made the scupe goat tu
all business men. Knowing that the rules a
banking require certain conditions, one hal
the customers Of the banks, knowingly vic
late those conditions and when visited will
the consequences of their own imprudence
they turn round and curse the banks,
Mechanics, Merchants and Traders is il M
SOL That there has been much gross mSinan
agement elsewhere, we not pretend to deny
but no man of common Interchangeable nrg
our banks with any Such misconduct. II
therefore to be regretted that some editorial
Of late We're written they only tend TO cxcit
distrust and hostility, wheir fOrbtnrancc An
confidence are necessary.
The banks in Wilmington are believed 20 h
sonndi taey were forced to suspend in consC
auence OfSuspenSion elsewhere TO attempt I
pay specie when all around have suspende
would have shut them up ia a week. The ma
who deposited bank notes last week and to
: day demands coin, is as unreasonable rs Ii
; who left barrel of potatoes ut our store We
terday and calls to-day for barrel Of flour.
True legitimate banking is, to discount sho
business paper on deposits and circulation, wit
enough specie in the vault TO meet Ordinar
demands. This we believe, has been the ri
7 with our banks, and when they deyiatrd it In
l been in renewing and discounting notes, ha'
v ing long time to run, through the solicit,
o ton of tho very men who now are most hO
tile to the institutions.
Lei there D5 iOrOearlnGe ana conifucne
let each man grant to his fellow man and Il
IN banks that confidence and forcbearanco
If asks for himself. Our banks are able and wi
y ling to return 10 specie payment as soon as ii
l. Philadelphia banks resume They ceased
N pay coin, when they saw preparations to car
70 off their specieto Philadelphia and New Yor
i thus retaining for the benefit OF this commul
o ty, the means TO pay specie the day spec
II payments are resumed elsewhere.
HAMILTON.