, 1861-01-29

ILLINOIS sBAEKMo.-Perchance eomc Of our tca d
crt think wc are sometimes too eesese on the iii
noIs banks. Nc often use strong language. and
In our view mono other can express what most men
feel on this subject. The wholesale manner IN
which. for the last three or four years. the
been deeced by those who, taking adyant1ee Of the
defects Of our General Banking Law, have enriched
themselves ont Of the honest earnings Of our pco.
pie, merits the strongest condemnation language
can gisr it. Speaking Of our Illinois Banking Sys
ten. the y. T. Forfd Of last Friday truihfully
says:
The history Of American banking, from the colo
nial times to the present, il history Of artfnI
schemes" torob the people-to substitute debts for
1noncy-to pay debts by debte-aud in the attempt
to realize this commercial mposs1btlity the United
Satea arc the thcAtcz OF periodical commercial nan
1cs and commissions. which come upon us with such
Systematic regularity that Telook upon them az dr.
rensattons OF Providence. instead Of the natural
effects ofa wrong principle. The banks promise to
pay specie on demand, and consider ihemselvcs
asr1svea II asked 10 pay: legislators sanction the
act of refusing to pay. 4 storm Of inyectire u.s.
sails the writer Who darrs to advocate payment br
the banks Of their dcbts at maturity and on demand
OF. in default thereof, to irict upon them tho game
penalty which attaches to amcrchant who Is unab]c
Or refuses to pay his debts Wherein consists The
difference: 1t may be urged with truth, and some
degree Of force, that when the banks issue Their
bank notes or promises to pay on demand, they
do SO IN the expectation Of never being asked to
DON DO ak for payment excepting during seasons
OF panic or excitement Therefore, demand for
payment Of debts due By the banks TO the people
Is 70 be treated as IN exceptional and
caprice. calculated 10 ehske public confidence by
displaying tho weakness Of the banking Eystcm.
and the For1hlcesncss Of their promises 10 pay;
vent these demands for specie; by pie the
dinacnnles Of obtaining It by the people >'@9
Ths xsds 1o p ct III 4 peesatp ps 5ssasss
WAYS kept IN solvent condition. and retain public
confidence, hy the system Of permitting them only
banks are not 20 numerous as they might be, under
prompt payment system, and adairs generally are
more pleas rnt-to the banks: The people arc also
ths ds er Se Of %ue
to the banks, for the sale Of their wheat and pro-
duic fer fer eash which sash orspeeie the banks rean
aha gave the people In exchange their bank
The bankers use the specie obtained for ihe Illinois
9arnsr's produce, and the Illinois farmer uses
charge from four 10 twelve per cent PREMIUM
which tha, the trade ofllnois is taxed these
u imports and exports of Chicseo, ESTIMATED ii one
hundred and seTentyAvc millions Of dollars at
an exchange Of si1 per cent, about ten millions Of
dollars the people lose BY their vicious banking
and dIsstpated currency, This principle Of bani.
t1g Is precisely the principle which the New York
demand liability, The existence .of tic Ss.ooaooo
Of bank notes iaeucd by ithcm. In ths aSrrce
7nent Of the associated hanks of New YorE. to
OF their demand liabilities the demand uablfltice
are specially limited to their net deposfte. md
do not include the $500 900 Of bank notes. ,shicl
Gus distinction between bank notes and net dcnos
It's ss demand Liabilities, l. probably because the
instead Of specie They arc secured by tic
plsdse OF State and other stocks-so a1e those Of
AZ banking pslnepe this Is dangerous
ought Of banks Ths p nopnsr enoy!
rance 81 Of nnance is to be regretted for people
then safely reduce their specie reserves to dye. or
ten per cent Of the demanded llabitIes-
sestlementa- Iii Illinois they do not sccm to have
had the same confidence in the principle Of nor
providing Specie for the payment Of that which
thc New fosk. bank managers s. taie, tn for 9th in
annoas Inaaoa they have not deemed, 1t safe to
10 pay the $1s; G10.0U0. Simple justice, however.
Eeq9tres ns TO state that alth oush the theory ot
Ehe i Illinois bankers seems to ditler from that Of
precisely the Aanaein reality they do not expect to
be asked 70 Pay their notes in specie and II they
lse sst aaEsd 1py to pay apesie they don't doit The L.
Snow that they are not experienced financiess,
or they are striving 10 compel the bauka and bank.
IS IL they were common merf1ntttc dnhta ~ Era5'
,ean financial experience and authorities. and the
nie ~ ,t naxe aGeaded that one-thrd IN
mum ratio Of soecie reserve 4ean;.te e.. tn, sa
'ank1ng.
St. Lor1s,-Thc De1noero, ri s.+n-d.v,
The supply Of eiebt EXCHANGE I. dcc-o. ~. t.s..
han It Is created, and another advance took place
"a The East cent IN Nc.S or,aanc a.v ~ fxeent
Y ,incinnau and Louisville. for banKabic funda, in