The Kansas herald of freedom., 1859-08-27
IN. Banking Article.

4no 04AknB AhuSAos
The provision that the banks shall
have in cash on hand in its vaults ten per
cent of the amount Of its circulating |
notes, is good, provided they do not Dor
row this money at the start. and when the
notes are delivered to them by the Audit
or, return it, thus leaving the people
nothing but the public stocks as security
for their circulating notes. ~
The Convention refused to require
majority of the stockholders to be resi-
dents o. Kansas. The gate is left open
for eastern brokers to establish banks and
food the Territory with q deprecated
currency, which they will buy up at
discount. How this works can be seen
by reference to the Illinois and Wisconsin
banking system. We clip the following
racy remarks from an Iowa correspondent
of the Chicago Press and Tribune:
Were the majority of these banks
owned by parties who. when compelled
by the tedious process Of law, would re-
deem their notes, the people might feel
more tolerant. But not the least Of the
evils attending this system is, that it
brings upon the community the plethoric
issues Of scores of banks-returnless,
homeless, fatherless currency, the issuers
of which never intended to redeem it.
evenif at the distant tail end of the law.
These may properly be termed Back
woods Banks" and this class are not few,
either in Illinois or Wisconsin. s me
adventurous Shylock buys his Missouri
SIS aud deposits them with the Auditor,
receiving therefor the bills of the Raccoon
Bank. and takes them to Chicago or some
other city and loans them at high rate
of interest, in addition to which he re-
csives his six per cent. per snnum interest
on stocks in the hands of the Auditor
The bill reads, "The Raccoon Bank
Sleepy Hollow" and fancy pictures the
"Raccoon" in his rural retreat. in his quie'
bu-row, occasionally venturing forth
into the world, but quickly returning tc
his birthplace and his home. But every
body knot0s that the Raccoon Bank wa,
born in Chicago or Springfield, or Mil
waukee, or some other city-that it nevs
had home, that the bills once out. hence
forth have no owner, nor redeemer bu
as long as the people allow themselves
to be swindled by taking them and re-
garding them as currency, so long they
'go," and when the people get tired of Sc
doing, and become willing to assume tn,
risk, delay and expense of presenting anC
protesting, then the Auditor sells tn,
stocks and closes the affairs of the Bank
and how does the 'stock secured" curren
cy of such Banks turn out? The six pc
cent. bonds of Missouri form the create
part of the security of the Illinois ant
Wisconsin Banks. These are now wortl
eighty three cents on the dollar in New
York, and if any considerable amour
was thrown suddenly upon the msrke
they would fall to a much lower figure
With the depreciation in value Of tn
securities and cost of winding up, whicl
would be from ten to fifteen per cent.
is apparent to every one, the loss to tn
innocent bill holders would he not little
Blu. the evils of the system are too nu
/ merous and too apparent to all, to nee
further enunciation. And who pocket
the enormous revenSe derived from sue
system? Not the State-not cent Q
it-not the citizens, nor the farmers, no
the business men. They have no interes
in the matter. But the curb-st stone bro
kers, mushroom sp culators, pennies
adventures, and Shylocks generally.
One day the tide sets in from E,gl
Point, Wiscons;n-the Arctic Bank, j.
Barbor, Cashier, and the next day fror
Mt. Carmel. Illinois-the Bank Of Amer
!. ca, j. c. Barbor, President, and in tn
advertising columns Of the Press we reat
y. C. Barbor, Banking and Exchaue
a Office, AZ Clark street. Chicago. E,
change and uncurent money bought an
sold" Bye and bye it will, perhaps, /
a part of his business to buy up his ow
. deprecated issues at sixty to seventy cen
e on the dollar.
E Some of these men living in Cbicsg
/; St.. Louis, and other cities, own six ,
;, eight banks apiece. and it is to fill Il
4 purses Of such men that the public sui
|, NIT to this wholesale swiudle.
Section 7th, prohibiting banks fro
issuing notes of less denomination tbs
five dollars, will prove q most ferti
+ source Of swindling. The banks wi
t pay out the small notes of rickety stot
e banks, and having flooded the COUNT
with them, refuse to receive them on d.
: posit except at the quoted rates Of Il
/ detectors. If this course is not take
f then the people may look out for Il
Inauguration Of the issue of checks /
bankers and others, which will drive o.
9 almost entirely the specie circulation.
9 The Convention has made ample pr
vision for flooding the new State with
worthless foreign currency, and for drivil
!. specie out of circulation, unless the LIE
j. islature adds greater safeguards. Not
Q ing else could be expected from Il
"model" men of the Nineteenth Gel