New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1861-01-25
WESTERN BANKING.

r. % Daniel Webster affirmed, Paper Money
that is, paper promises TO pay 80 mauy dollars,
which were lies on their very face, and so in
tended 10 be when issued-be the most effective
copirivapce yet employed for enriching Specula-
tiop With the life blood Of Industry-then not only
the bankers but the Legislators of several Western
States baye much to answer for. For, though
the bankers are the immediate culprits, the
Legislators are their necessary confederates and
partners or at least accomplices.
The theory of sound Banking is a very simple
one. The Western Banker has just one safe,
legitimate functicn-tbat of aiding the movement
OF the Produce of his neighborhoOd to its proper
market, wherever that may be. AZ banker,
be has not aud never can have money to lend
wberewIth to buy lands, build houses, construct
railroads, nor any thing Of the sort. But to the
farmer who says. ~ have heavy crop Of
Wheat just ripening, and / want from $500 q
Z" 81 COO for ninety days wherewith to pay cash
" for harvesting, threShpg and bagging 1T to
the droyer who says, +" / want S5,0OO where
- with to buy fat cattle and take them to market,
" and can turn IT within sixty days" and so like
wise to the rkpacker the grain buyer, the WOOL
buyer. &C., the banker should ever lend a ready
ear, for their business and his are the compile
ment of each other, and each is public benefit
In the days when banks were confined TO the
seaboard, the farmer was obliged to sell his cat
tie, his grain, pork, &c, to operators who PROM
ised to pay him on their return to market which
some OF them did and others coad net or would
not do Good banks supply necessary LUX be-
tween producer and consumer, and arc thus
general blessing.
A banker who does legitimate business 10
place where bank ought 10 be, has no cou.
ceyable excuse for insolvency save the presence
of come general and terrible calamity, which
sweeps away the resources on which he conf
IDENTITY and rightfuy relied. IF q plague should
suddenly Nil all the cattle and swine OF his Sec
ton, or u FIRE destroy I'LL the grain in the field
or the stack, be might be temporarily embar-
raised without fault On his part, and 80 would
be entitled TO forbearance and sympathy.
The current superstition which afdrms the
necessity Of keeping on hand a large amount oi
specie in order to bank safely and steadily is
well known by bankers TO be bubble.
banker in Illinois OF Wisconsin may do bust
uess Of q million q year without ever beng
called on for $4,000 in specie, provided he SO
conducts his business as to be- always in funds
in New.YOrk and ready to draw at reasonable
rate. He should be able and willing 70 draw ~
par, having his discounted notes and drafts
always falling due just where it ia most conVen-
lent for those who move the produce OF the
country to pay them, which is just where that
produce finds market. Aud banker who will
always draw on New-York at par need not keep
on hand in specie more than FIVE per cent OF his
average circulation. II he presumes on the good
nature of business men 80 far as to charge one
pr cent tor sight drafts (and it is q very great
presumpiion), he must keep more specie, for
some bll.bolders WIN naturally prefer one humid
red dollars in band to ninety IN New-fork,
even though they be on their way tbither TO
expend or invest the money. II is more shtrp
than wise in the long run to charge any premium
on draft; for the banker who understands bus
business, and does il properly, can as well pay
in New.York IA ut his own counter, and may rs
well accommodate his customers as dsotlige
them, when he can do the former ut no cost
But the current four, FIVE, ak, seven, eight
ten Der cent premium on New. York drafts In the
West. with the corresponding discount on West
ern bank notes in the East, can have but one OF