Muscatine weekly journal. [volume] (Muscatine, Iowa) 185?-1890, 1858-05-15
The New system of Banking Ex.
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The New system of Banking Elk.
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Animated by the spirit of progress COM
mon to the Great West, various Western
men, aided, no doubt, by ingenious gentle
men OF the East, who are disguised with the
slow way OF 'sdoing tbings'' in that quarter,
have largely improved upon the old definition
of Banking That used to run thus "Bank-
ing is the taking of notes, with security and
with interest, for other not. without secu-
rity and without INTEREST,"" but the parties
aforesaid have lntterly added these most inn
portant words -''and without redemption"
Banks organized in accordance with the new
definition have commenced operations in
various parts of the western country. With
the modesty which ought to be commended,
their managers have generally preferred the
rural districts to metropolitan locations -the
Arcadan simplicity of the country to the
''up to snuff intelligence of the cities !;
hence Nebraska, yet pastoral region, in
which idols would grow spontaneously if the
'peskY lngins" did not make life there a
continued epic, has been high in favor with
the modern retormers of our Anticipated
banking system. They found there legis-
lature cheap and pliable-w willing to accom-
modate them upon the easiest terms, and
without demanding gold country inacces-
sible by water in winter, and remote from
railroads at all tlmes-a population sadly in
want OF money. Here were the conditions
required for The successful pursuit of banking
under difficulties. Is it any cause of wonder
that the new ideas at once took root and
bore fruit, yielding an hundred fold ? any
wonder that every tenth man had bank
charter in his brooches pocket, or that one
man out of every hundred had bank in full
operation--the ''no- redemption' feature of
the new system being the thing most rigdly
insisted on? All this was very we'll for Me-
braska. The people Of Chicago and our
readers generally care very little whether
the Nebraskals use iron, cowries, coon skins,
or COWS and calves for currency. The new
ideas are seN-propagating. Nebraska bank
ing did not contiue itself to the territory.
Stray bills at fist, then occasional passages,
later, larger packages and more Of 'em and,
finally, cart loads of the issues of these no.
redemption concerns found their way into
Iowa aud some parts of Illinois. Western
merchants bought goods lavishly in Chicago,
depending upon this Nebraska money to dis
charge their debts when due. We warned
them that they would get snake-bit; but no
heed was paid to our words !; and we had
nothing left us but to make war upon the
banks, their issues, and, through them, upon
their owners and engineers. One after an
other, as our shots took effect, the institu-
tons went down. We were aided power
fully by the country papers and, between
their efforts and ours, but one OF these new
tangled, patent, long clawed, redemption
ho Of Elnrapna
one of the earliest of the varmints, still lin
gers. The financial reputation of the gentle
men who own it has suticed for n long time
instead of specie. The responsibility OF
Cook & Sargent brdged over the distance
between the Mississippi; at Davenport and
the Missouri at Florence. But even toads
cannot live long on air; much less will
credit always answer the purposes of hard
coin. The people of eastern Iowa, with q
degree OF patience that entities them to rank
with St. Stephen the martyr, saw exchange
on Chicago go up to 10, and on New York
to l2al5 per cent. saw merchandise OF all
sorts-their exports only excepted-rise with
exchange; saw trade leaving its accustomed
channels to seek places in which the old
fashioned redemption notes were used; but
they "grinned and bore it," waiting ;or better
things. Their patience is now exhausted
and at Davenport they have gone to work to
send Florence down to that Limbo where
broken banks all GO. The principal banking
houses, not interested in Tie propagation OF
the new system, have thrown its notes out
and, save himself who can, is now the cry.
We are aStoni>hed this has not happened
before. A mere bald-faced attempt than
the Nebraska bankers have been making
never was made even in Georgia; and that
the people have SO long submitted to incon-
venience and loss, to say nothing of the Insult
to their intelligence which this patent bank
ing implies, proves that they are entitledtc
the companionship in which we have placed
them. Now let them persevere. They hav.
begun late; but they must make up in zeal
what they lack in days. 1t is time that Iowa
was cleared of the currency with which she
has been cursed so ng-Chicago Tribune