Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1857-08-06

Consistently in view of all Bank directors,
everywhere.
The question recurs, what description of
directors will heed itP As general re-
mark, junior partners, successors, coward
progress, and "Young America" are in
clined TO disregard the past. History is
not always learned by reading. Expert
ence is the only safe teacher. Business
men, tiDged with speculative views, and
tickled by speculative profits, are unsafe
repositories Of capital on credit. They in
variably "make haste to be rich," and by
their recklessness and improvidence, drive
many from affluence to sadness and sorrow.
l close, therefore, where began. Banks,
TO be useful and safe, must be owned and
managed by money-lenders. Borrowers
should have nothing whstever 10 do with
them, and it would be new but valuable
provision in any charter, 10 prohibit loans
to directors and stockholders, under any
circumstances.
But agree that all these difficulties ars
out Of the way-that all is clear in the world
Of commerce, and that every note and bill
will pc paid at maturity.
What thenp In city like st. Louis,
Banks TO be profitable, must haze large cap
itdl. Otherwise they cannot pay dividends,
and 10 the stockholders who honestly SUBJ
scribe, and look TO their dividends for profit,
it is not material whether their money is
squandered by spectators, or eat up by ex-
penses.
Some of the small Banks, perceive, are
starting on very small sums; so small, that
any boy in arithmetic can decide that div
idend is impossible. Their active, working
capital is under two hundred thousand dol
lars.
II has been demonstrated that the expense
of working Bank, in st. Louis, is at least
$3.50, 900 per annum, and the expense is more
likely to increase than diminish. Good
men, who, can be safely trusted with money,
are becoming more and more scarce, and
may be Justly said 10 be at greater premi-
um than formerly. They are in active dc.
mand, in every part of the civilized world;
and of this class, at least forty will be need
eo in St. Louis, if all the Banks succeed, as
they desire.
Thirty thousand dollars annual expense
is ten per cent. on $3O0,O0O; larger sum
than the working capital of any of the Banks
in process Of starting, Expense alone, it
is therefore clear, will prevent a dividend,
and marvel that the gentlemen in charge
have not discovered it. Some of the mana
gers, understand, admit that they will
make nothing for one or two years; but claim
that after awhile the stock will be enlarged to
a sum which will produce profit. Why
do they not reflect on this, as on other sub
jects? Why not attribute 10 other men
motives similar to their own? If so, it will
appear quite clear that disinterested out
slider will not put his money in proftless
stock, while the books of the old Bank are
open, and the stock paying satisfactory prof.
| its. --4.= .-sy-
A friend TO Banks, and prudent, success
full banking, l cannot resist the impress sion
that, all other difficulties out of the way, Ia
start on small capital is certain ruin. A div
idend, under such circumstances, is impos.
sible. and the stock of no Bank can be filled
which is paying nothing 10 the owners.
Several OF the small Banks, and thoss
most eager to start, have only capital o.
one milion-only $500 900 Of which can
be worked in St. Louis. Two branches re-
quire TO be started by each, 10 work the re-
manning 100000.
Under the most favorable circumstances
ruth emery dollar ofstock taken, and paid up
a satisfactory dividend will he extremely
; difficult. But to work Bank in St. Louis
and one or two branches, on less than $500
600, as some seem TO intend, is entirely oil
of the question. Profit is impossible, ant
in due time outside stockholders will find i
out at their own cost and charges.
In the face of this double difficulty, @
pending financial crisis, and small capital
the charter is exceedingly imperfect, ant
needs numerous amendments, which may
or may not be granted in October. Tn
CITY and .Hechanic's, both large Banks, un
der the lead of able and experienced men
are understood to be waiting for those amend
ments. If granted, limitations are oil
that both can Gl up, and commence unde
circumstances which will command success
Should this fair prospect fail, disaster j
prominent, and the system may be sai'
! 10 be Of doubtful utility. Two or three
small Banks, with small means, cannot fur
nish currency for the State, cannot com
maud public confidence, land something els
.. must be agreed on, and matured.
The old Bank is the only apparent, pres
.. ent remedy. 1t enjoys, justly, as mucl
OF public confidence as any Bank can, il
this State, and in the West. In addition t
its capital, with authority to establish Bran
ches at the important commercial centres
will meet public opinion, and comman
public confidence. lF
IS%Editorial comments of the Republi
can, upon the foregoing communication:
,, MEcHANIcs' BANK.-A passage in tn
communication which we published Satur
day, in regard 10 the Banks Of this State
makes it proper for us to say, that the Ne
ehanics' Bank of this city will be ready I
) 60 into operation by the 10th of next month
(August.) The second instalment of III
stock subscribed will be payable on the 81
Of August, and no one doubts but that III
call will be promptly met. That will max
the amount actually paid in over $4,000
and ON this sum the Bank will oommenc