Muscatine weekly journal. [volume] (Muscatine, Iowa) 185?-1890, 1859-06-03
st. Louis against tho Country
Banks.

st. Louis against tho COulltr!
Banks
We take the following from the Missouri
; Republican, which itself copied the mali
extract from the Lexington Express entirely
and exclusively applicable, as it doubtless is
to neighboring State. We may, however
learn a lesson from their experience:
In our last we referred to the fact that the
Brokers were again engaged in the work o.
trying to make or get up Il run on the coun
try Banks. At that time we had no certain
information that their efforts had been direc
ted to other institutions than the Farmers
Bank of Missouri, at this place, though we
suspected as much. In the Republican OF
the 9th inst. we find the following dispatch,
going to show the movement is general, and
not confined to any particular institution
BooNvlLLE, May 7.
"Thc Bankers of St. Louis and the Savings
Institutions are making run on the Branch
Banks. They drew out Of the Branch at
Brunswick twenty thousand dollars; and
the Branch at Glasgow fifty thousand dol
lars, and the Bank at Lexington sixty tho,ls-
and dollars. The VIM. II. Russscl, having
this booty on board, passed down to-day"
We doubt not that Bankers in the above
report should read ''Brokcrs,' for the legiti-
mate bankers, so far as we have been able
to learn, have had nothing to do with this
effort to cripple the usefulness of our incor-
porated Banks, by Withdrawing from circua-
ton their issue and giving the people in its
stead, and in place of the gold and silver
thus distracted, the deprecated and uncertain
paper money of other States. We hope the
Banks, or the bankers proper, will never so
bemean themselves.
In our last, we promised to point out a
few of the results of this system, if tolerated
in the future-an evil calling for the most
stringent legislation for it's correction-and
we do so the more readily, now that further
evidence of a systematic run on the part of
brokers is manifest.
l. The result of continuing this run must
be to prevent our Banks from discounting.
This is manifest, for if their bills are imme-
diately bought up by the brokers, and the
coin demanded on them, they have but
small basis upon which to issue and the
people Immediately interested in their dis
counts must suffer, and not the great money
centre Of the State.
2. 1t will exhaust the gold throughout the,
country.
3. The points most convenient to our riv-
ers will first feel the effects of this run. This
is manifest already, by the announcement
above that the 'sharks' have already visited
Lexington, Brunswick and Glasgow, with
drawing from these points no less than $780,
900. at one haul. With this specie, our State
will be flooded with ''wild cat' bills, almost
as worthless as those instrumental in foisting
them upon us.
4. The country banks have and do encoun-
ter much trouble in obtaining their dues in
st. Louis, payable in their own bills; not
because they have no retiring agency, but
because Brokers find it profitable to possess
themselves of the issue of country banks,
and by converting it ultimately into shin
plasters, are enabled to make large profit
thereby. For instance, they receive it ON
deposit at par put agents to procure it at all
convenient points, and as a last resort, pay
triile for it, so that suhiciency may be
gathered together in few days to warrant
its presentation. On deposits, they pay out
currency, thus realizing a handsome per
centage; and with the gold they buy up
and are thus enabled to continue their war
oll VIC Sdllo CO'titly DdlNS, dliu dI lilc SdHle
time, replenish their Golfers.
5. The ultimate injury it must inflict on
business and moneyed men Of st. Louis.
All can understand this, and all must see
that the system is ruinous to the best inter-
ests of not the country Banks merely, but
the country that depends upon them for ac-
commodations in the line or either discount
or exchange. OF course, all the banks ex-
pect to redeem their bills at any time, and
we speak for the Farmers Bank ouly, when
we say they are always ready to do SO. But
the drain, as we said before, cripples their
usefulness, and deprives the public of expec-
ted benefits, all to build up contraband in
terest in St. Louis, as ruinous as it is odious.
A combination, such as we have tried to fore
shadow, is pregnant with all that is evil, and
when the combination becomes coupled with
that master engine, wealth, it becomes fear
full, and against it, without further guards,
the country Banks cannot meet the purpo-
ses of their creation, or the expectations of
the people of the State, at whose request,
and for whose convenience they were called
into existence.
A reaction must and will ensue. a crisis
sooner or later will arrive; and whether it
will fall more heavily upon the country than
upon St. Louis, remains to be seen.
. .