Daily Davenport Democrat. [volume] (Davenport, Iowa) 1864-1874, 1865-01-21
: DAVENPORT IOWA, SATURDAY JANUARY 21 1865

OAv1NIOh1s0 ]"
Asour rns CuHasScr WAR--The powsrl
that manage ths banks -National and State
f-ars 1t loseerheads. This b true al ovs,
the country where thsss separate insatn-
lions exist, to grsstsr or less sxtsnt~-but
particularly is it true here in Davenport,
whore the matter has besn brought to d.
rect issue. Let ~ zee which side ID right.
The - stsnds thas: The Stn1ss Bank d
Iowa, the issues Of which are oasshAk psa
cent. discount In Chicago, refuse 70 provide
for the redemption Of their issues ct par,
except at their own counters. The First
National Bank Of Daveppert whose iasues
ars par the country over, refuses to handle
the currency Of any Bank, State Or other.
wise, except It discount, which is not re-
dsemable at par in Chicago. The reason
why must b plain TO every business man.
There is An aggregate State Bank issue Of
nearly million and half Of dollars, almost
entirely con6ned. to Iowa, and constantly in
creasing. Large amounts ofthis moncywould
find way to the National Bank every day,
were it permitted, and what is to be done
with it, The owners refuse to provide for
its rcpemption except At their fiftsen differ.
ent counters scattered al over the State,
and to sort out and send this money to the
respective Banks would be source Of no
little trouble and expense, consequently en-
failing great loss upon the National Banks,
whereas, il the same currency could be re-
deemed at par in Chicago the expense would
be but trifing.
There Is another reason: We Get down
the broad principle that it is the duty ol
every Bank to use its best efforts to provide
the community in which it is located with the
best currency possible, and to discountenance
that which is deprecated. Now, then, the
best currency is that which is par through
out the whole country. That which is not,
should be avoided. The National Bank cur
rency is at par-the State Bank currency is
at discount. The former passes current
all over the country-the latter cannot be
used at par even at the first commercial
city you reach going East, and as the State
Banks refuse to make it any better, is it not
clearly the duty Of the managers Of the Ma
tional Bank to discountenancs it, and give
the people ths best ouFrcncys Undoubtedly
we think. It will be seen by advertisement,
that the National Bank refuses to longer re-
ceive on deposit checks drawn ON the State
Bank. The reason is obviously the same
as the one given for not receiving State
Bank currency on deposit, at par, inasmuch
as tho State Bank claims the right to re-
deem its checks in State Bank currency.
In making these remarks we must not be
understood as rejecting upon the Mer-
chants Branch Of the State Bank, located
here, except to limited extent The Mer-
chants Branch has, BY its judicious man.
agement, favored this community. Its is
sues have always been redeemed in gold,
and therefore have been equal in value with
gold. This cannot be said of any bank
State, National or otherwise, with single
exception) in the Union. 1t has not, and
does not contribute to this trouble, ~ far
as its own issues are concerned, and we
much regret, now, that it lends its aid to
foisting upon this community tho bills Of
the other branches which are known to be
deprecated in value. We regres it because
we believe it to be contrary to the best in
terests of the public, and because We know
that its managers would like to do other
wise. 1t has redeemed its own issues hon.
orably-why should it insist upod flooding
the market with the deprecated bills Of its
sister banks? Our course on the currency
question has always been understood. We
are for the best money all the time, and on
this matter we most cordially endorse the
action Of the National Bank, and are glad
that the entire press Of the city sustains it,
The business public, consulting their own
interest, cannot no otherwise