Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1857-08-06
THE NEW BANKS.
To The Editor of the Republican:


your editorials in relation TO the organize
ton and prospects of the new small Banks.
You think their course is clear, and that
certain success and prosperity awaits them
l entertain different opinion. The state
Of the country, and trade, indicates caution,
and those who think otherwise will proba-
bly, be mistaken.
There Is, in this State, we'll settled
hostility to all paper money, fact well
known to all, having many monied transac-
lions with the people. The old Bank OF
Missouri, with a good standing Of near
twenty years, is not aboue Suspicion
Many parties, in all portions of the State,
refuse its paper, and all paper. While in
Aating his gold humbug, Col. Benton orea-
ted and sustained party feeling against the
circulation of paper money for commercial
purposes, and although abandoned as one
Of the political frauds of the day, the fact
must be admitted, and considered, in every
thing having reference TO the establishment
and successful working Of Banks in this
State.
More men, imagine, than you are aware
Of are looking carefully into this question Of
the organization Of the new Banks. In the
country, more is understood on that sub
ject than is perhaps thought Of in the city,
or agreeable to be published, 1t may be
as well TO say the whole matter is under
stood, and let parties proceed accordingly.
The capital error is in the charter, and
until that is amended, in many important
particulars, nothing will be safely or prof.
tably done.
From beginning to end il gives preference
and power to small stockholders, and abso-
lutely forbids any one, until after six months,
from subscribing over fifty thousand dol
lars-the final limit being one hundred
thousand. II am not mistaken, that is q
prominent reason why so small an amount
Of stock has been taken; and every one,
now suppose, perceives the error. That
provision excludes large money holders,
and in consequence, the stock, as for as TAX
en-, is small sums, and generally by bust
ness men; men who, from the nature OF
their avocations, are in daily need Of facili-
ties, and who have subscribed one dollar in
the hope and expectation of getting three,
or more. No Bank ever has been, or ever
will be safely organized on that principle,
and when understood to be thus organized,
cannot enjoy an extended or useful credit.
Owned by business men-controlled by
business men-the circulation of two or
three for one loaned 10 business men-it is
clear the holders of the circulation are not
the holders of sound money, but of very
precarious Bank credit, entirely dependent
on the uncertainty Of trade and commerce.
The reverse is the true principle. Bank
stockholders, in all cases, should be money
lenders-not borrowers. Men who 60
into Bank, willing AMI anxious to loan their
money TO business men, but being cool OBJ
servers Of passing events, are les likely to
pass weak paper, than those more sanguine
and hopeful in business prospects, who
pass the paper OF a neighbor 10 avoid the
scrutiny OF their own.
At period, different from the present,
this feature would not be so vital an ohjec-
ton. Everything partakes of speculation
and nearly every man is Spectator. The
The railroads and boats are crowded &c
their utmost capacity, with wild and vision
AIRY young and middle aged men, seeking q
fortune, at once. Not one Of them are look.
ing for, or will hear of point, where old
fashioned patient industry and economy i:
rewarded. They are running in quest o.
fortune, and ,piA not fad it. Mark this de,
claration.
In time this will tell, fearfuly, upon pro-
duction and consumption. Present consul
mers, at famine prices, in glee OF hope
will be disappointed. Their air-cas,le'
will all tumble. They will be unable tt
comply with their contracts, and compelled
in almost sad despair, TO abandon former
pursuits and resume the slow but SURF
process of production. Producers, in turn
will he disappointed. Their views ant
contracts are all based on present prices
much Oft on time. The ruin and insolven
cy of the business and speculative classes
will fearfully and rapidly react on them
Countless thousands Of debts, now consid
cred good, will be lost, and untold millions
passed on present prices, never realized.
These facts and circumstances must b.
considered in the administration Of the at
fairs of Bank and in all private transa C
tions. The period resembles exactly tina
Of 1888. In that scene was an active &C
tor and good luck combined with credi
saved me. Everything now is on The sam
platform. and generally the public mind i
in the same direction. Fine jewelry es
tablishments--fn stations fast trotters -
imported bulls and bucks-wild lands
town lots and sites--with untold million
in unproductive railroads, mark the era.-
A national bankrupt law, which extinguish
ed over four hundred millions was then ma
tional necessity, and men may reason ant
talk ..as they may, but like causes produce
likeresults. .Another bankrupt laD is ineu
liable! 1t may be difficult to convince tn
masses Of its propriety, but OF its necessity
no doubt need be entertained. The min
is being rapidly primed and in less thai
three years the public may prepare for tn
explosion.
Men who hope they are good, and il
many instances believe it, are now sustain
ing iheir credit, and pushing their indeb
tedness before them, at from one to three ne
cent, per month. This will be found TO b
only ON aggravation of the disease, and
is wonderful that parties will not stop, an