The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-10-16
BANKS ANp BANKING--coNTINUEp.


money 70 common depository and left il for safe
keeping and convenient transfer Each depositor
credited the amount paid in which was called a
ledger entry. When money was to be paid, the
payer was charged and the payee credited upon the
ledger, the money remaining in the vaults. Small
fees for receiving money and transferring balances
paid the expenses. The money seldom, if ever
withdrawn in the early stages of its existence, At
later period the government required depostes to
be made, and, during the early crusades a large
amount of coin was collected When the State itself
used by the government. Of course, these bal
ances deprecated largely, but they were made
legal tender at par although worth from twenty to
thirty per cent less than money itself But for the
arm Of the government it would soon have fallen
dead. II continued for long period, but was ended
by Napoleon One started at Genoa had shorter
life.
The inconvenience of using clipped coin early led
the city of Amsterdam to establish bank of depos-
ite where gold and silver deposited in coin or
bars and sacredy kept, for which certificate of de-
posite was given This was transferred from mer-
chant to merchant and was divisible, and new ones
given on the payment of a small fee, which, with
one charged on making the deposite paid all ex-
penses and sometimes produced a surplus for the
city treasury. These certificates represented real
money, which could at any time be obtained upon
them. With such bank there could be no fuctu-
ations and the quantity of currency in the banks and
hands of the people always the same unaffected
by panics or pressure, and certainly causing
either. This was a bank of money owned by those
who deposited it, or holding its certificates, and
which could never be used to expand contract the
currency or minister to the wild spirit of umegu-
lated speculation. The certificates which were a
convenience, represented real money which the
holders could obtain if they chose 1t is believed
that not dollar lost by ii, and it is not
strange that confidence in it has never been impair
Cd but has stood two hundred and fifty years, mon
ument of the wisdom and prudence of the old Dutch
merchants. The Bank of Hamburger nearly resem-
bles that of Amsterdam, both in its organization and
results that of Stockholm had less stable founda-
ton, and was badly damaged by its connection with
the government. ..u
The Bank of England has stockholders seeking
dividends and originated in large government debt,
which constituted so much ofits capital. This bank
has swollen to of many millions of capital, but is
si constituted largely of government debts, which
may pay interest, but the principal will never be
paid 1t is the great financial agent of the British
government, and performs for it important functions
and receives ample compensation 1t issues bills,
contracts expands the currency at pleasure, and
raises or lowers the actual rate of interest Most of
the revenues Of tho government pass through it
Abont .QE II a,,anended apac;n ,opmonfa and fore
ing Parliament to sanction it, its notes became, for
most purposes, legal tender, and it did not resume
until about 1925, thus inficting upon that country
without remedy, for more thana quarter of century,
all the evils of deprecated paper currency
It's affairs are SO interviewer with those of the gov
eminent that it constitutes great political machine
and powerful engine in the hands of those who
troll it, But, with all its influence, it has not the ca
pacity to issue bills less than FIVE pounds or $25 1t
banks principally upon depostes its capital consist
ing principally Of government debt bearing interest
1t exercises a most fearful power in contracting
and expanding the currency and in increasing and
diminishing the value of property
Banks of circulation in this country have been
largely modelled after the Bank of England emitting
the prohibition against small bills. Their capital, to
a great extent, consists of debts in some form
they expand and contract at pleasure, determining
the amount of our currency and most effectually in
huencing the value Of property and the extent of
business. They exercise an influence upon the cur
rency and business Of the country greater than Con-
gress and all the State legislatures Bank presidents
and cashiers exert one upon the business and pros
perity of the country far greater than the President
and the governors of all the States, who can in no
way make money scarce or plenty, or compel the
banks 10 discount or redeem their bills or pay their
debts, or increase or diminish the value of prop
erty. 1t is an extraordinary fact that the State
legislatures have placed in the hands of irresponsible
corporations power over the business and wealth of
the country greater than they retain than is vest
ed in the people themselves. The whole power of
all the States cannot remedy the evils which the
banks have inflicted while it is conceded that Con-
gress cannot apply any remedy whatever. All the
legislative and executive power within our borders
cannot remedy the evils with which we are afflicted
The vote Of every freeman would be powerless for
relief The voice of thousand public meetings can
produce no saving result, ..5 S. ..sst "a
The evil is upon us, and we must abide its conse
quenccs II grows out of vicious system Of allow
ing selfish corporations the power TO make our cur
rency, instead of conforming to the constitution. II