Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1858-07-25

eSlehuancc - Tedutst0u.
The New BANKING MOVEMENT
As certain parties have, for some days pact
been industrionsly engaged in laying tn,
foundation for q new bank in our city, We
propose. in few words to canvas the merit.
Of this proposed banking system with q
view of determining its merits and demerita
The plan proposed ty Mr. Alvord, who il
foremost in this new operation, is that one
hundred business men Of ofDavenport sub.
scribe each one thousand dollars, and that
the hundred thousand dollars SO obtained
be made the capital upon which to base q
peoples Free Bank. Now the object of es-
tablishing a Bank Of issue in this or any
other place is TO create additional capital
for the use of men engaged in business re-
quiring large amount of funds. How is
this point to be achieved how is a greater
amount of capital to be created by the
above method? We venture to state that
nine-tenths Of the business men of this city
who have put down their names for thou
saud dollars each. have no mo. ready funds
than they are obliged to employ in their
business at the present time; and when
they put that amount into bank, they take
just SO much out of their business, are
just so much short in consequence therec +,
and would be compelled to get accommo-
dated At the bank, for the same amount, and
perhaps more, as soon as it shall be opened
Is this creating new capital, or giving our
business men any better chance in the
money marketg Certainly not for they
have now no more than they want to use,
and what could be the object in sinking a
thousand dollars of it in banki If were
true that each subscriber, or one half of
them, had thousand dollars on hand which
ness. and not be crampsd thereby, the INST
ter would assume different form; it would
be creating just so much capital for the use
of our merchants who are not so lucky. Or
if the capital of bank could be brought
from abroad, and loaned to our merchants
through the bank at legal rates, then there
would be positive help But the idea of ere
ating capital for the use of business menby
taking it from their present limited funds
and putting it into bank stock, knowing
that an equal sum and perhaps more will
have to be drawn cut Immediately, is pre-
cisely the same principle that the Indian
adopted to lengthen out his blanket-which
was to cut a piece from one end and sew it
upon the other. We have plenty of banks
for that purpose already. 1t is mere boys
play, and could be of no possible advantage
to the community.
Our merchants want q bank but they
want one made up OF. other capital than their
own; they want one from which they can
borrow money without merely borrowing
what is already their own; they want &C
commodations which put with their own
means, will allow them to transact their bust.
ness in an easier and more acceptable
manner.
Make an example of Mr.. w. He has
$50, 900 embarkedin trade, which he can
not do with q cent less, and would be glad
to have more; and in order to increase his
capital go that he can operate with greater
ease, h- subscribes thousand dollars to
start bank A month afterwards he wants
a <lo,,aocJ Jollo-. 3, ol1;t;cr 20 b;a .oa1r
funds, to meet his paper; he goes to the
bank and obtains it; but what accommo-
dation is to him? He had it before-he can
no more than have in now and so it is with
nine-tenths of our merchants. They have
all they can do to manage their business
with what funds they have, and when they
want an accommodation they want it from
foreign capital.
Hence we draw the conclusion that the
plan talked of would be impolitic, and i'll
calculated to assist the merchant or forward
commercial interest Those who have .
superabundance Of funds are the proper per-
sons to engage in banking business. and not
those who have NO more than is absolutely
necessary for present requirements
THIN0s WHICH THE People OUGHT
TO KSow.-We think by this time, that the
public are beginning to get an insight into
ways and means devised by certain Alder
men, BY which the pockets of the people
have been made to bleed, worse than Kan
sas ever "bled," and by which the Treasury
is likely to continue to bleed until the pub
lie voice frightens some Of our City Fathers
into performance of their duty.
Last year the Road Fund was overdrswn
about $4,000. leaving that amount to be
paid out Of the road fund of this year. The
Road Fund Of this year viii not exceed
$4,000. leaving 5000, to be expended
for road purposes for this year. which
amount has been sxpended, aud yet ".
have resolution passed the Council appro