The Athens post. [volume] (Athens, Tenn.) 1848-1917, 1857-10-02
BANKS.


If those who wage an indiscriminate war.
fare on Banking Institutions would take q
calm survey of the subject. considering theiI
uses as well as their abuses, in that fair and
practical manner which the New York Tri-
bune has in the article below, we should have
better Banks and better times:
The power of Banks, their aims, duties and
responsibilities, always important, become in
times like these, of Obvious and general inter.
est. We have recently heard sensible men
express distrust of the feasibility of obtaining
currency wherewith to move forward the
heavy crops now nearly ready for Market
On this hin; we profer some practical sug-
grstions:
Banks of issue are essentially public and
popular institutions, protiting by the favor OF
the community and owing its service in re-
turn. Even if we were to admit--as we do
not--thnt a private capitalist may "do as he
likes with his own," we should cOncede no
such right to Banks. They must do, not
what they like, but what'the public welfare
requires. They must, first of all, maintain
their own solvency, and then so use their
vice TO the community. No Bank can ever
rightfuly lend money for investment in land,
building, railroad or other specuIations,
whereof the returns are necessarily remote
and contingent. A Bank should ask with
regard to a note offered for discount, first. as
it perfectly good p then, "What right has the
oherer to a discount? What is he doing that
should enttle him to such oan?" If he is
not in some business which usefully employs
and rewards labor-if he is not contributing
directly by his business to the public well
being-he has no right to a loan, though his
account with the Bank be a good one and his
ability to pay undoubted. Three fourths of
our Bank disasters originate in loans to per-
sons who have no right to them.
Our Banks pnd business men are now suf-
fering froma deficiency not of money, o!
whatever kind, bnt of exportable Produce
We have been buying too much abroad, con
sdering onr means wherewith to pay. If we
had Fifty Millions worth of exportabIc pro-
duets on our sea board, we would very soon
modify the pressure. Loans by our Banks TO
the proper parties TO bring forward the Grain,
Meat and other staples which our farmers
have, or will soon have ready for market, will
not weaken but trengthen the Banks. The
more they discount to fit men for this pur-
pose, the stronger they will be. And this we
trust they see and apprehend. No matter how
large discounts may be required to bring for
ward the crop just matured or maturing, our
Banks will be fortified by making them under
proper safeguards. True, no time should be
needessly wasted in the operation, so as to
bring strain on the Banks while the Pro-
dure shall be coming forward; but, if safe
buyers in Cleveland or Chicago, Dubuque or
Burlington, Muscntine or Alton, should re-
quire short discounts secured on Grnin or
Provisions on their way to the sea-board to
enable them to buy more, and pny cash, so
fast Us the farmers may be ready to sell and
deliver, they ought to be fully accommodated,
and our Banks, ns well MS those of the West,
would be benefited and fortified by offording
the needed facilities.
These considerations are so obvious that
we have little apprehension of lack Of cur
rency to buy the impending crop for cash,
and dispatch it to the seabOard. The real
danger is, that prices will be So depressed by
a conjunction of good harvests here and
throughout Western Europe and the basin of
the Mediterranean. that our farmers, especial
ly at the West, will ruluse to SELL hoping for
better prices next spring. Those of them
who are out of debt, and in no particular
want Of money, may, perhaps, do so with ad-
vantage. The debtor class, however, is very
large, and debtors, in the present state of the
money market. will be obliged to sell at least
part of their crops to meet their urgent lia-
bilities. II behooves merchants and bankers,
creditors and forwarders, to neglect no safe
exertion and employ all their means to secure
to these ready pay and as liberal prices as the
times will justify.