The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1857-08-29
From the New York Daily News.
THE BANKS AND THEIR ABUSES.

THE BANKS AND THEIR ABUSES.
We are now in the midst of of those revusions to
which countries where the credit system prevails peri
odicay exposed We not at all ambitious of playing
the part Of makers revoutionsts but would
be recreant duty to the public if failed in
pressing proper condemnation of the that
Of our financial institutions have recently pursued The
policy of the democratic party has caused such reforms in
the banking system in this State to the bill
holders against any large amount of loss by substituting
State credits as basis for issues 1t is much to be re-
etted that this modification has not been adopted by
every State in the Union, and thus element of pro
ecton for the Woodworking class against the dishonest
rhemes of spectators and monopoiss might be attain
Cd Another Of those great reforms, which is calculated
immensely to check the undue expansion Of the credit
system, was the independent treasury.
This saluary and constitutional mode of carrying on
the fiscal affairs of the country operates truly the great
regulator of the currency, to terms which for
nerly very improperly applied to what the great dis
tractor Of financial afairsa national bank The indie
pendent treasury apart from its value the only legal
instrument for the collection disbursement and custody
government funds has frequently by its conservative
operation saved the country from the evil effects of
trading and the excessive expansion of the banking sys
tenn and it is ennenty calculated to resist the effects
growing out of any .smonopoes and special legisla
ton for the benefit of the few at the expense of the
many
without these checks the banking system would have
led to unlimited credit currency, which arrested
the policy of the democratic party, decidedly put
in operation by President jackson. Even with them
+ the tide of speculation deep enough to sweep
very frequently the hardwon savings of the poor away
through the fluctuations in business the high price of
necesares the perpetual shave consequent
Xrlv of
two of banks in States where the wildcat swind-
ling plan is still permitted
There still abuses which require the direct
ton the Legislature public opinion is not potent
enough redress the evil Among these is the diver
sion of the of banking institutions to prop
other jontstock companies. The banks intended
auxiliary to commerce, and it was contemplated
the legislature that they should be employed like the
0aia Ao5il tho general endoser Of manufacturing,
mining and railroad companies. These associations
should not be carried by credit this is the case,
the community will pay for it dearly by the appreciation
Of the of living and in the end stockholders viii
find their investments entirely absorbed
ruinous example of this false policy has been exhib
tied by the Ohio Life and Trust Company in Ioaning
money on railroad securities to great extent as to
involve itself inextricaby; and still precedent is
that the American Exchange Bank in loaning to the
company might venture its capital few great steam
ships instead of scattering and dividing its risks in
parativey small amounts over many bottoms When
this bank propping up institution which had thus
mingled itself up in the risks of another branch of enter
prise, merchants in want of the of carry
ing the legitimate and ordinary business of the
Try double wrong thus wrought fearful risk
incurred and the channels of regular trade de
ved Of that element without which business must come
to dead stop
is dishonest for bank presidents and directors be-
cause they happen personally to be interested in other
schemes TO leave mercantile business to angEsh suf
Ter from the depIetons Of note shavers because they
Peculang gambling in railroad stocks and securities,
and sacrifice the general welfare to subserve their
PERSONAL interests II is not for this that the State grants
these institutions the monopoly they enjoy in theory at
east the benefit of these institutions should be shared
BY the many not engossed by gigantic speculative
railroad company.