Semi-weekly standard. [volume] (Raleigh, N.C.) 1853-18??, 1859-04-09

soo,r. HAum-fAs haue 1sn6sa n ScsseA
bsnkhe = ut vsy AysslAss y d. syyssa. hss
takine q IN ID wsskhQ q 80 yOA 4 sAsss -.
6ucs,asioa and loa th6n have Gssslilsd IN Kaehsd
and ths United SsatsA 1hs touevng = q essssse
hum . rspost msds 10 he Glaasov C2sssv "
O.asyss. upea he sahjses u esoeurisl ohk
We commend he rsmasts 10 he easssal euasiasss-
ton Of our bankiag ssad1: -,
.sThc best security agpinss com@@rial csasuS1ea
X to limit credit The neafvs ws cone 10 osh
business he soundes yin b eR ts1aI IL 60
parasivc security II rsvneh eummsses dssing he
late crisis va no dosea pouy estse = " -.
iiicd nature of its cssaih; sn4 On Ne eshs< hssa
the disasters which ovsFvheinsd sAs esoosses q
America vrse certainly he result e q ssasxss
ased credit syxtem- Evuyvhsss he ssahslsy a
commerce h IN On iavssss ratio 70 he dssssposal
Of credit But The sbuss a @sscansils estlis eoed
not exist 10 any great sxt.as vsss sos ssssssd ~
In our eommsraf sysssm he credit s,-sa b. sas
trader to another. dspeaeh astnly On shs ssssks
given BY bankers 10 nsdssA 1ssasss cash sss
give excessive CREDITS unless haaksss suppsisd them
with The means. lmpeudcas banking b d ths soet
Of all unsound trading. 1hs psai 6alt a modern
banking b The insu0c;seey a svs~vsA Baker,
like trsdsr4 bound TO psosts ens thssf seavsnry;
they must reserve ample ssssas 70 .sss eaaissson~
and In their case any departure sva shs suis b shs
morc inexcuaable thst he psep@ amount q svsssvv
for then to hold may b ssesssainsd With slsss
mathematical psvc;aioa. But he ds.isS q psees -
the urErncy of their cssto@sFs induces bsnkssss IN
too many instances. 10 tnvsss their deposits oosy
closely than psudsaes wssnatA salssy b nessd<d
far an additional per censage a psuot he rssssvs
b allowed to Gall dangerously low. snd vhse uos
Of pressure comes The hAak has noshiee 10 6n hsek
upon. This insufBc;eaey q banking sssssvss b shs
immediate cause q our psaicA whsa Psssssss %.
ours our grras money lralsss ore The dsss 10 tsks
alarm; with enosmoss liabilities md Inadequate ~.
serves Of Immediately available sssoascss. thsy sl
that their solvcncy = snangsrvd and thsis violsns
efforts to regain pos;loa u sa(sSy sss Ne ehtsl
cause Of disturbances In The 0oesy masksS. 1usssesa
Of lending to oshesA thsy become themselves shs
most imporsunaie of bosyowsrs They xhe sheutd
sustain credit are ths chief authors a dhesviis
they who should inspire ceaitssns ass shanssivvs
panicstr;cken Il b not The needy dsposises a. Is
norant noscholdcs Of the provinces Who esusss ON
panics; Il b the maioaaiss measy lsudss q cut
great centres Of co1m<src. Oae pvas eauss q to
sufficient reserves h undoubtedly the high ssss a
interest allowed upon drpesitA Such s.sss en- oaly
Of deposits. Our trading credits scss mainly On g
commosiatioa from The hanks. The provincial hanks
deposit graf part of their srsesves With Loedps
bankers on call. The London bankers again invest
their deposits closely. and trust mainly so advances
from the bank of Eusland ~ case Of need. vhil,
the Bank Of England itself allows its reserve %
times Of pressure 10 ell 10 t,tisns fraction a u
deposits. Thus tho vast sup<rsssuesurr Of Bsitisl
commerce rests ultimately on . mere tsibe a ~
served capital Our whole credit systrm b IN IN
vcstcd pyramid Your cummittce dos nns louk n
ony legislative remedy kr The abuse q errdit. II,
cure must be found In the usosv honest and intrili
gent appreciation of their duties by al vho sishs,
give or take credit"