Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1859-06-09
THE BANK QUESTION.

MISSOURI MONEY CALLED "BoBTAIL."-
81. Louis used 10 be The golden city Of
the West, but ever since the creation of
DIR new Banking System, gold has been
constantly getting s:arcer, SO that st. Louis
is now merely 'shin-plaster" city. We
do not think the Bank managers wholly re-
sponsible for this state of things. We
think The Banking Law very defective; and
under IFS operation it was impossible for the
Banks to keep out a large circulation for
the relief of the people oil the State, and at
The same time make that circulation all
equal 10 gold in st. Louis.
The Banks endeavored 10 keep out a
heavy circulation, and to this end used
Branch notes, which they refused to redeem
at the Parent Banks. Ii the laudable OBJ
jsot of this expansion of currency was the
relief Of the people, as it is, perhaps, justly
claimed by The Bank, it possessed the Incl
dental advantage of being likewise most
profitable 10 The Banks.
But the present demand for Gold cannot
be supplied without having access to the
Banks. This demand sends Branch Notes
home for redemption; and this return OF
their circulation disubles the Banks from
renewing loans TO their customers.
Now, who is in the wrong IN this whole
matter? Clearly not the Banks, who have
done what they could 10 'relieve the peo-
ple," and make all they could on. of their
circulation. Clearly not those who, holding
Banks notes, and needing the gold, ask fer
their redemption. Men DO not 90 hundreds
Of miles, al expense 10 themselves and at q
risk with their money, TO draw specie from
Bsnks for the mere "iun of the thing
But, say some Of the unthinking friends
Of the Banks, ''the gold is drawn at this
time by the Savings Institutions and others,
merely ttGt they make profit on IT." We
grant This. But we hold that this is legti-
mate trade. The Bank Notes were issued,
in order that the Banks might make q
profit on ,hem'-which they haze made
and they are now sent home for redemption
by those that hold them, for no better rea-
son than that they may make profit on
them
But how is il that the Savings Institu-
lions and the Brokers can make profit,
legi,ima,ely, by drawing gold from the
Banks? The fact is, simply. that the State
wants gold TO send 10 New York 10 pay in.
,srest on her debt. The City wants gold
for q similar purpose. The County, for the
same. The Merchants want it TO send
forward 10 pay their debts.
And many debts in our own community
are made payable in gold, and coin must be
daily had for the purpose.
Are not all these stubborn facts? Then,
how, in the name Of all that is reasonable
and honest, can ii be claimed that ii is an
iiIegitimate business for Brokers or Institu-
lions 10 seek gold 10 supply these daily le-
giimate demands for it? The Banks do
not supply these wants, dor do they try 10
do so. They pay out no cash paper-sn!y
"BankabIe Funds" all the time.
= We have a case in point: Last winter
James M. Hughes, Esq, President of the
State Bank. was al Jefferson City, election
esring against the Sayings Institutions. To
representative from this county be said:
"The Banks will always freely supply all
legitimate demands for gold in St. Louis
any citizen can at any time get what he ac-
tually needs in aking his regular, honest
psyments-we only want 10 get clear Of the
Earrings Institutions which needlesSly runs
on u.s." Well, short time since, that
very representative, 1--WE can give his name
10 Mr.. Hughes, if he wishes, had note
of $4,000 TO fall due. and the holder de-
manled gold. The Banks tailed TO make
good The promise of .Mr. Hughes. The un-
lucky legislator was out all day, with a
friend 10 help him, and only after visiting
ten money dealing establishments, ard with
considerable difficulty, did he succeed in |
buying at a premium, gold enough TO pay
ms debt!
This is one transaction of thousand, oc.
curing every ueek in our city. The peo-
pie of Missouri have been accustomed for |
many years, 10 handling gold mainly in their
business. and it is with no cspious spirit
toward the Banks that they still do it. And
those Institutions which exert themselves
to supply the people with gold for their
daily business, Will always be popular, and
sustained by the public confidence. II is
for the people they act, and their bushes
i strictly legitimate.
The Republican argues that the sending
Of Branch Notes home for redemption eau
ses the country Bank circulation to be cur
tailed, and thereby 'disables the country
merchants Of Missouri from psying the city
merchants Of ST. LOUIS" In other words,
the country merchant needs TO borrolc money,
to pay his debts with. But il this is good
way Of paying debts, let us see of what val
ne the payment will be to the city mer-
chant The payment will consist Of Branch
Notes borrowed from the country Bank,
which the city-merchant dare not send home
for redemption in gold, under pain of being
denounced as "Filibuster."
But he must have gold TO pay his Eastern
merchants, and so he goes to the Savings
Institutions TO convert his country notes into
gold. So, after all, the payments By
country merchants" would not be worth
.'chaw tobacco" but for the intervention Of
some parties, that will convert the country
notes into Eastern Exchange, which can
only be done by drawing the gold on them!
A payment by the country merchant TO the
city merchant is very important, 10 be sure,
but il must be in something that will be
t.f =. -, VarL tor - :. ,Lara H.,