Meigs County telegraph. [volume] (Pomeroy [Ohio]) 1848-1859, 1858-01-12

backward, with what reason can we look
for such change in the modes OF thought
rs would produce a movement In the direc-l
tiOn you desire? AS think, with none
II then, the facts be rs you hold them to
be---if the difficulty does really rest with
the local governments-and If our oply
chance of remedy is to be sought in State
discretion--then are we truly helpless, and
then is oul Federal system total failure.
Fortunately such is not the case. Fortu-
navely, the difficulty does not lie with the
States, ne. you, i. am sure, will gladly be
convinced, after reading the brief sketch
of our banking history, that VIII now be
made.
American banking had its origin in New
England the good sense Of It's people
having early taught them the advantages
that must result from having places at
which those who had money to lend could
readily meet those who desired to borrow
both parties being thus relieved of the
necessity for the employment Of middle
mon in the arrangement Of their exchanges.
From the close Of the war, in 1893, TO 1871.
tile average number of banks "a Existence
throughout the New England States, was
l6; while the number of failures in all that
period-embracing,a as it did, the years
in which, under French DEGREES and Brit
ish Orders in Council, the seas were
swept of American ships--was only four.
Taking now a longer period, the hall
century from 1885 to i835-embracing
not alone the times Of piracy on the ocean,
above referred to--of embargoes and non
intercourse lawsuit, Also, those of the
war of 18l2-of the disturbed period chat
followed close upon the peace-and OF the
celebrated crisis of 1825-we find the
number Of banking institutions to have
averaged no less than sixty; while the total
number of failures, in the whole hall cen
tury. was only twenty, or two in every five
years, of period Of greater commercial
disturbance than had ever before been
known. Of these failures, five took place
in Massachusetts; but by those the public
suffered little. il any, loss. One paid all its
debts. A second, its is believed, did the
same. Of the third, the bills outstanding
at the date of its stoppage were but S27,-
900. The remaining two certainly paid
every outstanding claim, except $l9,873,
and it is not now certain that even that
small sum was not subsequently paid
Admitting, however, that it remained un-
paid. the total loss to the people of Mas
sachusetts, in period of fifty years, from
dealing with banks, was less than 81 900
per annum, and not more than one dollar
tn every nal:ion--or tie ten-thonsGadH
part of one per cent--of the transactions
whose performance had been facilitated by
the existence of such institutions, and by
the substitution Of bank notes for metallic
currency. Small, even, as ia that proper
ton, it might, as think, be much reduced
lit being based upon the idea that the
operations facilitated were but forty times
the:amount of the capital; whereas, it might
be almost safe to place them at four hun
dred times that amount-in which case,
the proportion of loss sustained would be
only the hundred -theusandth part Of one
per cent. .u~..
Ipray you now, Mr.. President, to rehec
upon the quantity of service rendered by
banks. in collecting. guarding, and trans
ferring property--all of this work being
done without charge of any kind; and tS
determine for yourself if, in any other case
so large an amount of service is rendered
at so small cost. The broker charges
an eighth, or a quarter per cent when he
arranges a transfer of stocks. The whole
sale dealer charges FL, or 5 per cent. The
ratailer takes 10, Is, or 20 per cent; bu
the bank performs an amount of service
Uhose sam IS equal to the total amount O
the exchanges of society, tn aohich money d
used-charging nothing whatsoever
Sometimes banking institution, badly
managed. falls into difficulty. So, how
ever, is it with brokers and commission
merchants In the case of these latter
however, the loss is generally almost total
whereas, in that of the banks. the loss fall
almost exclusively upon those who hat
done the work-the stockholders.
Seeing the fact to be as state, woult
ask you, Mr.. President, to say, If you hat
been a resident of Massachusetts-anC
what is said of that State is almost equal,
true of all New England, in the perioc
above referred to-would you have beer
pleased, whenever you had large amoun
Of money to receive, to find yourself com
pelled TO carry your silver on your back
or in wheelbarrow; or to pay commits
sion to have it converted into gold, IL
order that you might be enabled to trans
fer it from place to place; and to do all this
too, because il had been determined that i
was the duty Of "the government" to fur
nish currency-that that duty required
great "wisdom and skill''--by the appli
cation of which it had arrived at the con
clusion that shopping with bags full o
dollars was far more convenient and agree
able that the performance of the sasae ope
ration. with the aid of pocket books filled
with pieces of paper, by means of which
this property in money could be trans
ferred without the necessity for hauling
the silver, or the gold? That you woult
have preferred the notes, feel assured
In New York. the banks, in the thirt,
years prior to 1887. had averaged 96 ii
number; and the total number Of failure
had been I6, or about one-half of one pc