Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1865-09-29
uare RanEa wanted.


a small country town 10 the interior, asking US
what steps need be taken to induce some of our
New York capitalists % estlbllsh baBk 10 thst
yicin .ty. money there "is particularly scarce"
The question is very suggestive, and We have
though. that Il might not De amss TO pursue the
theme for the benefit of all concerned
1t is mistaken notion which many en'effaip,
that the establishment of bank is the method to
make money plenty. Such an institution, hav-
ing good credit may loan this credit by inscriP-
ton, and thus enable ito tavorltes 10 borrow
money more readily; snd it may draw out pri-
vate boards on deposit, and thus secure them
more readily for public use: but its functions in
the way OF supplying capital where IT Is needed,
exceedingly limited Especially * this true
of banks which are located in the rural districts.
Our readers cannot have forgotten their expert
ence under the old system of banking, where
remote settlements we're selected Tor this pur
pose because OF their distance from lines of ira
vel, and the few facilities they afforded TO the
ennrprising redemption age ri, who wished to COM
pei he bank TO exchange The coin for its notes
HeIe aud there all over tne country IN tbriv-
ing interior settlements there we're sound instItu-
lions, establishing win a bona tide capital the
surplus slowly gathered by the hard hands of
honest laber, and such banks we're both useful
and honored But large pant OF the money ed
institutions" which recorded their existence in
emall interior towns, really had no home in the
places where they were nOminaliy located They
were OF city parentage, sometimes even of city
birth, aud indebted 10 the distant locality for
nothing but baptism and registry. A city broker
obtained chatter, it that were possible, or
organized under some general law, If nothing
better could be done, for the establishment OF a
bank at Troutvile IL he wished % do business
on a large scale, he secured building 10 that
village, in which he fitted up counter and desks,
a han
ten, however, he only hired place where be
could hang out sign to register the baptism of
his bank Then few fine steel plates from the
engrsver, set him up IN business. Dis object
was to issue his bank notes, and keep clear OF
them long possible. Every dollar thus kept
afoat was loan for which he paid no interest.
Sometimes he would keep a reserve fund in the
city to redeem his issues at near par, in order
to give them good credit and a wide crcula-
ton. At other times be would put them out
without any such provision, and when large
sum had been issued, silly create little panic
about them. and buy them at good round dis
count from their face. the poor holders having;
for the most part no remedy but to sell them for
what they would bring. whenever they were re-
fused at the shops. This style OF banking was,
after while, restricted in measure by the more
stringent laws in many OF the States, which re
quired deposit security for these bank note
were thus prevented, and "wild cat" banks still
fiourlshed. and their city owners rode in elegant
carriages and patroniZed the costly arts with the
most distinguished liberia llty.
Ii will thus be seen that the mere establish
ment OF q bank at Troutvile will not relieve the
"impecuniosty" of the residents of that healthy
village On the contrary, We might venture to
predict that the few deposits which should be
drawn into a moneyed receptacle SO instituted
would be quite as likely to find metropolitan
application AS to be held for the benefit OF Gus
TONERS in that immediate vicinity.
We have an object however, in these remarks
beyond the illustration thus presented. The ma
ton has just inaugurated new banking system
to extend ever its entire domain. There has
been no little clamor on the part of communities
remote from the financial eel res for their share
of the benefits to be derived from these institu-
tons. The law, enacted by Congress aimed to
distribute these benefits, not only by requiring
an apportionment of the privileged circulation 10
an equitable manner among the several States,
but also by compelling the institutions thus re-
ceiving the privilege TO redeem their notes at par
as they drifted to the large Cities and thus give
them powerful motive TO extend their interior
circulation. A par redemption for every note
which reaches any financial centre is the only
way to secure 10 the rural districts the proper
use OF the currency designed for their advan-
tage
There has been decided opposition TO this
IN the country have been mlsled by the repre-
sensations Of INSCRIPTIONS writers, and have thus
fought against their own interest A few repu |
table citizens have opposed il. some because they
are afraid to array themselves against the malice |
OF SPECTATORS, and others because they deem
this an inauspicious moment 10 which to
enforce a provision they regard as sslutsry if it
would execute itself By tar the strongest op-
position, however comes from those city opera
tors who are running large number Of the
country banks for their individual benefit A |
little inquiry will reveal TO the curious reader
very singular chapter in the history of these new
banks Ii is the old story over again, with no |
variation except fresh page and change Of
type The bank is noninaly located in the dis |
lance, but ts home is in the city; and the people
for whose benefit i, is ostensibly organized have !
no interest in il, unless its banking house
shall be an ornamental feature in their
landscape. Some of those in this and
neighborng cities most distinguished for their
connection With the so-caled wild cat" banks
OF former days, are large proprietors OF the
hedglngs recently established IN various parts OF
the country; aud many who are new hands al !
the business. bat have favorable partisan eonuec-
tons, have likesi, e embarked in the uDdertak-
lng IN the hope Of large pecuniary rewards |
These banks registered for baptism in various /
parts of the county but if allowed such priyi-
lege, will all be managed in city Offices, with no
possible advantage ID the communities which |
furnish them name We have reason 10 be /
heve that Secretary NeCulloch understand very
vel the opposition which he meets from the
source IN his efforts TO secure the proper work |
ing oil the new system; and We trust ne will lot be
deferred by i from perfect ng that ~hch he began
with so much promse-N Y. Journal Of Com |
merce