Glasgow weekly times. (Glasgow, Mo.) 1848-1861, 1860-03-15

last month, has been raDSed from one ana
half TO two per cent. premium, and this is
in reality what it costs when bought with
banhable funds. With gold it can usually
be had at one.quGT!er Of one per cent; and
should it lappen a. any time that there Is
no exchange upon The market, the geld can
be shipped By your express companies iOr
tie salae price, or less.
The State Of Missouri, few weeks
since, paid six thousand for the transmits
sien Of four hundred thousand dollars TO ,hs
city of New York, with which TO pay in
tersst on our State bonds. This enormous
sum was given simply because the State
paid FOX i in ''bsnkable funds" Had The
State bought with gold it would have cost
bu! one thousand dollars; thus showing, as
clesr as two and two make four, that the
peoae of this State were taxed ond made
10 pay, in this single transaction, five thou
sand dollars more than il wsuld have cost
them under sound system OF bankiBg.
But there arc other objections to our
banking system, and not The least among
them is the manner in which customers OF
the Banks are often forced TO sell bills OF
exchange in order TO raise money 10 meet
lhe ordinary demands Of business, while
o,her dealers, 30 more worthy; obtain mon-
ey on simple notes. In the former case par
ties are made to pay ten or twelve per cent.
in the latter, 10 more than six or seven per
cent. This system, besides falling 10 give
satisfaction either TO the customers of ths
Banks, or to those who manage the Banks,
bears most unjustIy upon those who borrow
from them. In many instances those who
offer The best paper are made TO pay under
the existing law, the heaviest rates Of inter-
est. In the fall seasons OF the year, our
stock and produce dealers want moEey 10
move the various products of the country,
and, as general thing, raise their money
on bills of exchange, payable in New Or
leans. This kind of paper, it is wei! known
is the very best class the Banks can buy
They prefer il 10 any other kind because
the most profitable TO them: sni yet this
class of customers are charged more than
those who obtain money on notes payable at
home. At other seasons Of The year. when
real bills cannot be had, custom has grown
up OF forcing men TO draw bills upon points
where they have neither money nor produce,
and by this system Of ''ki;iug," axe nads
10 poy both interest and exchanges for ihe
sole purpose ofsweLliag tie profits Of he
Banks.
This practice calls loudly for protection.
While i IS all right and proper that banks
should be allowed to make fair and reason
able profits, their managers should remsrl-
Der tliat this is not the sole object Of their
creation. Tie higher and nob!er purposes
Of banks should be 10 aid, where they can
in facilitating the regular business opera
tions of trade, and, as far as possible, man
age their affairs in that manner bes! caicc
! lated 10 keep every branch of trade IN lis
natural and legitimate channel. I'y course
! Ct thi, kind The Interests Of all the plr'ies
concerned in the end, Be best su5scrred.-
Tie manpc. in which many parties are now
forced 10 sell tint. ILLS OF cxchang
kites in rca'ity-payabIe al points waere
tie drawers have no means, eiLher present
and pros peclive, on which 10 draw, is in
suf!erable, Ii . mere device Of the sha-
var, by which he may wiring from his vici-
in heavy rate Of interest. As genera!
thing banks should only buy such bills Of
exchange as are known 10 &c based upon
rea! transactions, or where il is believed
the party Offering 10 sell will have The
means Of meeting ii punctuaIy at maturity,
and paving it eff at the place where lis
made payable. in discounting such bills,
if exchange should be at discount between
tho plses where it is bough: and the place
where made PAYABLE, the banks, in al such
cases, should be permitted TO charge, in al
d;,:on 10 the r1~u'ar rate Of interest, fla
current rate cf discount that might be ru'
ing between the points at the time Of the
negotiation; aut 40 all cases whsre exchange
is worth pgcm.ln al tie points ca Which
bills ara drawn, 10 premium in addition 10
l..ercs. should be allowed.
In another respect most grievous mis-
take has been made, IN sona two or three
instances the right hss been claimed, in the
redemption Of their notes, Of paying of
each note os a separate aaa distinct ob'iga-
ton. aud the further right Of paying each
five fo!iay note in silver. Tie mere state
ment OF this fact is enough 10 condemn the
whole rroceed;rg. Banks, Of all other in
s,i'uiions, should be most careful Of their
credit and standing. Confidence once dss-
troyed is the mest difficult Of al earthly
things to regain; and if l were called upon
10 devise scheme whereby bank could
most efeciually ruin its credit, | could
think Of none that would more certainly sue
ceed than 10 hiegle in this manner over the
redemption of their notes. \ bank should
redeem its Notes promptly and eheerfuily,
and with all the facility and dispatch ordi-
narily observed in similar transactions.
Having thus briefly averted to what l
regard as the most serious defects IN our
Banking System, the question arises, what
are the remedies for them? Upon these
points there will doubtless be found some d.
versity of opinion, but not, hope, to such
an extent as may defeat The object in view.
With the refeelisnsI have bestowed upon
the subject, nothing has occurred to nay
mind better than the following:
/. Prohibit every bank aud branch bank
from paying cut any ncte they viii net re-
deem in gold or silver attheir own coun-