The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1865-11-24
Financial Affairs.

A good many articles have appeared in the
Press proposing divers ways to return 10
specie basis, and to avert the evils OF an lnnat-
ed paper currency, and they have not at all
times been free from specific illusions calcuiat-
ed to produce unfavorable impressions in the
public mind in relation to the moral honesty
of bank men.
1t is plain that such articles. while they can
do no good, may do much injury by creating
distrust in the public mind, and producing a
feyerish fear that the banks are unsafe, or that
they are playing fast-and-ioose game in their
official operations.
1t is no doubt true that some of our banks
have let out their old State bills after becom-
ing national institutions, and it may be true
that to-day, some OF them are issuing. in limit
ed amounts, of the same kind of bills.
We know an instance that occurred lew
months since. A U. S. Paymaster came rom
Washington to pay off the troops discharged
in this State. His money was in greenbacks,
of large denominations, so large that it was
imnossible for him to use them. He was oblig-
ed to exchange them for large amount Of
small bills, say 100000, and the money could
not be obtained in this city. One bank, at its
own expense, sent messenger to Boston at
least three times, to procure the money, but it
could not be done, and as final resort State
bills had to be used. It was case of necessi-
ty, to accommodate the Paymaster so that he
could pay off our brave soldiers, and yet, strict
ly construed, there was lack of legal authority
for the transaction. But no one has suffered
or can suffer from that act. The bank is as
good for its liabilities as the Bank of England,
and every citizen of Portland kno1s IL. ss
Another fact: The national banks, by
rule at HEADQUARTERS, are not allowed to re-
ceive their national bills only as they Withdraw
their local bills, and yet they cannot recall their
local circulation unless they have national bills
to replace it, without cutting off all accom-
mediation to their customers. Is itdesirableto
do this? Can our business men afford to have
the reins drawn SO tightly upon those who
are pushing forward the various business en-
terprises of the place? Doubted.
The truth is, there is lack of banking cap
italin this city. There is not enough for the
accommodation of our business. Instead of
two and a half millions we are told there
should be five millions of banking capital
We are told that large shipments of western
produce, that would come here, turn away
because of the inability of our merchants to
make the necessary advances to secure them,
and this inability results from the inability of
the banks, growing out of their limited CAPT
tai, to extend the needful accommodations
These are facts, well-lnown to business men,
that are telling upon our city's prosperity
retarding it, we fear.
The idea that our banks are reckless, or I'M
safe, or that they are playing fast and loose, or
! letting out their money for speculative purpos
es, is all nonsense. No safer institution ex-
Its. Every dollar of their local as well as ne
tional circulation is retired, and upon it all
they pay taxes and every dollar of the local
bills will be returned as speedily as possible,
much more speedily, it is to be feared, than
will be for the convenience oftheir customers
our business men.