, 1861-06-24
Cbitago Tribttte
WHAT. HwFLD~CATss BANKING
HX6 COST THE CKTX AND THH

MONDAY, JUNE n 1851
WH1T aW1LD-oAT., RANKING
" 1T1xE. :. !. - -
Now that disaster, widespread and ap-
ps1ling, has fh1len upon our people hom
the extent to which reckless adventure
ers ind pennileas sharpers hare taken 3D.
vantage Of tbs defects in our General
Banking Law, it Is well to estimate care
fully our losses in order that we may learn
wisdom from experience aud the more Ger
tainly guard against such IN immense
drain upon our resources in the future, In
NoTenber last, the total amount Of; the
circulation Of the Banks Of Illinois was, in
round numbers, twelve millions and a half
Of dollars For this enormous issue Of
bank bills the people OF Illinois had paid
dollar for dollar IN wheat corn, beef, pork
and other products, and 1t was to them,
for the Zine being, 50 much solid capital
accumulated BY their industry and econo~
my, and but for this wicked war which
rank treason has brought upon the coun-
try, It would still have been available for
all the purposes Of legitimate commerce.
The legislation ofthe past winter provided
against the further expansion of the cur
rency, except SIS it was based upon Illinois
securities, and had peace continued, no
very ee1ious loss would have occurred
from winding up whatever Banh safety, OF
other causes, might have required.
The experience Of the last two months
has sealed the fate Of our present banking
system. Possibly q tew Banks may make
gosd their securities but they can at best
only maintain sickly and improbable
existence The loss, therefore, upon retir-
Ing our currency may a. well be borne
first as last. The loss On the whole will.
certainly be forty per cent, ard we pre-
sumo, as the bills OF d large number Of
Banks are now bought at thirty-dve cents
on the dollar, fifty per cent will not more
than covert be sacrifica But, takeit at only
forty, and n]inois; must loose FIVE NIL
LIONS OF DOLLARS from the currency
mongers who fastened the infamous sys-
ten upon Us a few short months haye
swept this immense amount Of capital ont
Of existence, and our people must eat the
bread Of carefulness for years before they
can make up for what has been In i.
Our city must, beaT much IS than
her share Of this immense sacrifca We
have taken some pains to learn how much
Of this currency WAS in the hands Of our
banks and business men at the tina it
"went under," and the amount the city is
likely to loose ttom this base "promise to
pay N in the lawful coin At the realm.n
The Marine Bank alone had in March last
sbout g, 100000 Of deposits, nearly all of
which was in Illinois. currency. To say
that five millions were in the city would
not be an over estimate. Forty per cent
loss on this would be Two MILLIONS OF
Do1lAns. These words are easily pronounc-
ed, but since Geo. Smith d Co. discontin-
ued business, the amount IS just about
equal to the entire banking capital Of the
city. It is equivalent to wiping out every
bank in Chicago. It may be said that the
banks are paying their depositors In this
currency, or at from fifty to eighty-eight
cents on the dsllar, and hence the 1oas falls
largely upon their depositors. That is
true; but then large amount Of the bills
receivable OF the banks in the general
crash has become worthless, and the
banks must bear their full proportion Of
the loss. We doubt whether there is 10
day, all told, three. hundred Thousand dol
lars available and legitimate banking cap
ital in the city. The brokere, it is true, are
turning oveT an immense amount of money
every week, but comparatively sn1all
amount in their business goes great ways
1nd makes large chow. Let Water street
for instance 60 to the very few banks that
try to do anything with the most undoubt.
cd paper and make the most liberal o9ers
as to rates, and see how many thousands
they could command. If demands fol
: discounts were what they have been in
times past, all the banks in the city could
scarcely supply The Board Of Trade for q
single day. =
It need hnrdly be added that most 80.
1fous calamity has fallen upon Us. To sinb
the entire available banking capital Of the
city in three months time, must have 6
most depressing effect upon her entirt
business interests. Some, and indeed {
large number Of our readers, may col
graduate themselves that they will escape
for The reason that they never get NOTES
discounted at the banks; but their mos
profitable customers do depend largely
upon bank accommodations, and let no
body flatter himself that he las no inter
est in the tremendous losses which othert
have sustained in the general crash that /,
upon US
Some Of our readers may question thu
propriety Of our publishing these facts
but in financial, as in au other matters, II
is best to know the worst, and to proYid'
for it" II our people realize their tru,
position, they will regulate their affair
accordingly. The necessity for contract
ing our future business engagements to thl
means ne shall be able to command; Il
practice rigid economy in social and indi
vidual expenditure, and so to arrange
our affairs as honestly to fulfil every obi
CATION becomes apparent, aud the people
of the West have within the last four year.
had SO much of this kind of experience
that they will doubtless be found equal tt
every emergency. Our losses are sevcrt
it is true; bat it il better to bear then
cheerfully, for in that way We shall best b
able to achieve permanent success from
the disasters we have been obliged Il
suffer.
UNION AND SECESSION In BALTI
MORE.
Il has been clAimed On the one side tha
8 large majority Of the people Of Ballimor'
were loyal. and on the other. that seces