Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1858-02-06

Gle from the islander 4 Argus, Of the
4th inst. 1t is written by s"Sugerer,"
and If we arc not mistaken We can find
many sugeriny readers on theis side Of
the water. The writer thinks what he
says, and says what he thinks. Wish
all people we're as manly:
The position Of this community with ref
ersnce to Florence money, h q perfect anon
ally. Our business men sery generally take
it at par, while our bankers refuse to re-
ceive 1t, except on special deposit, or to cell
gold, exchange, OF other currency for it, or
in any way 10 fix its value. By thus dodg-
ing the question, they have lost the moral
Influence they ought 10 pOssess on oil quss-
tions OF finance, and we are left like a ship
without a rudder, to founder among this
waves "a Test we can. Whether necessity.
or Iseo,.lary inability, or a desire to pro-
the interests Of the community. or .
sympathy for Cook 4 Sargent, or q fear OF
their vengence, or . want Of back bone,
was the cause Of their singular course. it is
not now material for US to enquire. The
result is the same whether one or another
motive was the cause oftheir most efficient
action, 80 far as necessary, to protect their
own pockets, but total inaction. 70 far as
the community is concerned. Having then
no financial head to take the lead, We are
compelled TO fall back on our own resources
and determine for ourselves what to do.
When the bankers Of this city and Dav
export ehufiled off their W responsibility
in the matter, the writer was in favor Of
throwing the money out altogether, and
took his stand firmly on that position. In
doing so, he was not actuated by any feel
Ing Of personal hostility towards Cook d
Sargent. lie had known them for years,
not intimate personal relations. but "a he
most prominent business men Of our sister
city, and had never heard their integrity,
their credit, or their business capacity cal
led in question. They had gained the con-
idence of the entire community, and theirs
was the oldest banking house in Davenport,
and regarded as the strongest IN the whole
| northwest, outside Of Chicago. But the fl
nancial storm had caught everybody more
or less unprepared, and the largest houses,
| and those having the highest credit, and
who were in the habit of using it, were the
greatest sufferers, and the soonest to fall.
When this storm arose they owned the
Bank Of Florence, aud according to their
own showing, its circu<ion was nearly
$250,000. From the character and reputa
ton Of the banking houses, it is presumed
that they owed their depositors at least
twice, and probably three times that sum-
They probably owed considerable sums al
so in the east, making an aggregate Of in
debtedness at that time, Of cay, a million Of
dollars. For this million of money they
held the notes of their customers, the wild
lands they had bought, their splendid bank
ing houses, and their magnificent residences,
and possibly 100000 Of cash in their
vaults. When the crisis came, their cas-
tern creditors called on them for u settle.
ment, Neutrality-suspicious. were forced to reduce
their balances, and at the same time their
debtors were unable to meet their engage
mcnts. The notes of their customers, the
wild lands and the fine banking houses and
residences. were valueless for the purpose
Of raising money or meeting their own en-.
engagements.
Their cash resource, were thus exhausted
in forty days after the panic commenced,
and they suspended They did not, howev-
err, close their doors, or acknowledge the
fact that they commenced paying their liza
bilities to their depositors, in their liabili
ties to Florence circulation in their own GER
t~ificates OF deposit, with an occasional draft
on the east, for which they soon charged
twice the premium demanded by other
bankers for good currency. They could not
supply one fourth of the demand, even at
those exorbitant rates, and consequently
our merchaets who make payment else
where We're compelled to 90 into the street
and buy other currency or gold, for which
they were compelled to pay from 10 to 90
per cent. premium. The buyer Of the Flor
ence would Immediately loan it out at ex.
travagant rates as 80 much money, and the
borrower would rush to the same merchant
who had Just sold it, and pay off liabilities
to him, when the merchant would be ready
for another shave.
Thus have We been doing business for
four months, not like noble martyrs. who
were sacrificing themselves ON some great
principle, but like galley slaves, who were
afraid to call their souls their own To be
sure, We have occasionally groaned and
grumbled, when our chains were sew erlpp
a new artery, or opening a new avenue to
our vitals. Our groans and our grumb-
lngs had, however, to be uttered in some
dark corner, where no eye could see, and no
ear coald hear; for if our masters heard of
our Pining for liberty, or complaining at
our fate, our names were stricken of the
list OF those who were to receive any DOR
ton Of the crumbs that fall from their IN.
bles.
So far as the other bankers are concerned
no regrets should be offered, as they have
refused to take a stand On the question. ex-
cept such a stand as almost forced the bust.
ness men to take it: for while they receive
1t in broken doses, in payment OF what 10
owing to them, and take it on special de-
post. what little influence they have left, is
thrown on the side Of oppression, Injustice.
bankruptcy and ruin. The effect of thus
piling up Florence, in the vaults of Cook 4,
Sargent, is unfavorable in tie extreme. 1t
hides that much of the circulation from the
public eye, and makes Cook 4 Sargent less
anxious about the circulation, and in fact
convinces them that there is lust that much
less in circulation to be provided for. The
money in fact circulates lust as much from
the vaults of Cook 4 Sargent as it would
from the vaults Of any other banker. Shift.
ing the liability from the circulation account
to the deposit account, does not effect the
question ut all, for they owe the commun;.
tyjust as much in the one case as in tha
other
From the ignres heretofore assumed, and
the condition Of affairs for the last five
months, their liabilities to-day cannot be
less than $500 5000; say 5000, 900 of that
sum to Florence circulation, 5000 900 to
their depositors. and 100000 to their east-
ern creditors. One of the firm has been in
the East nearly all the time. for the last five
months. ayowedly raising money with
which to relieve themselves. Their earlier
loans are probably nov maturing, and it ia
fair to presume that they already have Dor
rowed as much as they can carry. Until
their depositors are paid. it is idle to talk
about retiring Florence, fer they have moth.
ing else to nav with and IL fhau had nood