The Kansas herald of freedom. [volume] (Wakarusa, Kan. Territory) 1854-1860, 1859-06-18

it is better to have homemade currency
than to be foaded with the issues of
banks located in other States.
The establishment of banks may, ill.,
crease the amount of currency in ciIcu-
lation but the history of western bank
ing does not prove that the poorer classes
of society are benefited by their exis-
tence So far from lowering the rates of
interest, they have increased them, and
make their discounts in some States at
double the legal rates of interest, by
selling fictitious bills of exchange. The
consequence is. that persons who have
money, deposit it in the bank instead of
loaning it on well secured notes, and the
money borrowing public have to pay
usurious interest.
If banks are to be instituted to expand
the currency of the country, it is neces-
sary that they be prohibited by constitu-
tional provision from taking, directly or
indirectly, by the sale of fictitious bills
of exchange or otherwise, higher than
the legal rate of interest For the COM
nercial and industrial classes, are better
off without than with banks, if they are
to be prostituted only to the service of the
bank directors and their favorites, except
on payment of exorbitant interest.
The second plea that it is better to
have homemade currency is falla-
cious; for it is notorious fact that the
aim and effort of bankers, is to put their
notes in circulation at distance from
their place of issue SO that they will
not be compelled to redeem them soon,
and can use their funds for other usurious
purposes. The Nebraska Banks were put
in operation, not to furnish currency fol-
Nebraska, but for Indiana, Illinois, and
Minnesota. The bills were sent off to
banks or agents in localities far distant and
put in circulation by them. A batch Of
banks organized not long since in Wiscon-
sin, were located in the wild pine regions
where their place of issue and redemp.
ton was almost inaccessible-some Of
them with capital of 100000, and al
issue of notes very close to the amount
of their capital stock. The owners arr
nonresident brokers, who can buy up thu
notes at discount whenever the banl
fails to redeem, turn them over to tn,
bank comptroller at par for the stocks o
the bank, and thus make a handsom,
speculation. So too, just now, the new
Missouri banks are grumbling becaus
their bills are gathered up by the broker
and they are compelled to redeem them
thus preventing them from making larg
profits. If the object and tendency O
banks was to furnish home ourrenc
they would not take sch excessive pain
to send their notes to distant States.
These stock banks do not necessaril
furnish the people of their immediat
locality with safe currency, for it is
common practice with them to push int
circulation, instead of their own note
the issues of distant and doubtful bank
which are loaned to them without intel
est, provided they will protect the ban
against their redemption. Thus Indian
stock banks forced into circulation an
gave character to the notes of ricket
, New jersey, Pennsylvania and Nebrask
banks, which ultimately failed and tire
the loss upon the people. The sam
banks who put them in circulation at pa
s bought them in at a heavy discount aft
their failure. The course of the Chicae
banks in bolstering up fraudulel
r Georgia currency, was based on the sam
: principle. Very few of the banks or banl
Il ers concerned in such swindle on IL
people, have gone down in the 6nanci
crisis, but the industry of the North we
l.. has been paralyzed. If the same game
to be played in Kansas, under bankir
!, system, then the people, for self-prote
n ton, should vote for specie currenc
a alone.
Another point of difference will be
to whether the people shall have a Sta
bank with branches or system of fir
y. banks? Indiana has both, and the CO..
: sequence is. that the power welded |
- the State bank is crushing out the fir
banks one by one. The objection to
. State bank system is, that it gives Of
> set of men exclusive control over Il
= bank currency of the State. They CT
" raise or lower the rates of discount
. the bills Of other States, and bring a pc,
> erful influence to bear upon the fnanci
interests of the country. This consolid
ton of wealth and power is not advant
rs geous to the people. Monopoly brushes
.r dividualism. If the State bank bases
re- circulation on State stocks as do the fir
Is banks of Illinois, consolidation gives t
" people no more security for the REDEEM
It ton of their bills than they have fro
IS independent free banks. Free banl
I organized under general law, give
4 parts of the State who can procure t
d requisite capital for bank, the power
possess whatever of benefit banks C
confer. A large number of well secur
II free banks benefits the people by comp
" tition. Consolidation is checked by the
ut independent organizations, and CONF
tt tition compels them to maintain healt
d financial condition. Neither is the te
= dency to political corruption so grs