The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1866-05-11
The Richmond Examiner aner tho Ma
tionnl Banks.

Tho Richmond Examiner after tho Ma
tionnl Banks.
The following clever article from the Richmond
Examiner on the National Bank system Of the
country we re-publish with pleasure, and earnestly
call the attention Of our readers to it:
We tell the people Of tho South to beware OF the
"so-called" National Banks that have been spring
ing up through tho country like mushrooms The
opportunities for fraud increase precisely in the
ratio of tho distance from Washington, especially
III this direction, and we warn our straitened
from such institutions, that they will be sadly
taken in by the reckless speculators, who arc not
sontens with the ordinary profits of Legitimate
80 kindly s'opened banks in the South are mere
adventurers, who have come down here to gorge
themselves by taking advantage Of the dire neces-
much lauded by vast combination of interested
parties, is an unsafe, deceptive and rotten one.
these concerns, and even when the utmost caution
is exercised by the department having charge OF
the institutions, there is well protected but
bonds. The depositors, both public and private,
are at the mercy OF set of sharpers, and We
know what has always been the result in such
cases. The men OF the banks are not selected for
their integrity, and when they are assailed by the
temptations Of this loose system, they are easily.
overcome and there Is o crash. ..u. -,
|, II the old United States Bank was thing
which, from its enormous power and corruptiLg
influence, called for suppression, what good rea-
son is there for these mere paper machines that
United States Bank was based on gold and silver,
and WAS 30 carefully extended and managed that
but we all know to what a sudden collapse it
came, and how widespread was the ruin caused
by it. How dare the Government, then, force this
monstrous paper abortion upon the country2
And how can any prudent man bring himself to
the folly Of entrusting his funds to it's precarious
keeping2
These are flush times, indeed, with all those
who recined during four years under the heavy
showers Of greenbacks that an extravagant Gov
ernment poured from it's treasury: Regular busi-
ness, with its slow returns cannot be tolerated by
men who have been 30 easily enriched by "Shod-
dy" and other contracts. Speculation is rife.
the in he earer days Of
Alabama and Mississippi, we have q species of
"wild.ca banks" that need nothing but a little
machinery and good deal Of chioanery to set
them into lucrative operation. In spite of the
acts OF Congress that vainly seek to guard these
National Banks with stringent provisions, it is
well known that only nominal captal is needed
to found them, and that the restraining laws are
as weak cobwebs against tho knaves who wish
to make a profit of the public confidence. The
worse by the laxity with which its laws are en-
forced The Comptroller of the Currency inno-
Gently tells us that Government has over five
hundred millions ON deposit in these nationa
banks, secured by only thirty-six millions It
speaks tolerably well for the honesty Of the bank
temptation here disclosed; but the recent crash
Of the Merchants National Bank at Washington
gives signal OF warning that Government and
crash is inevitable, for in these crashes that
bring ruin to thousands the speculators secure
the rewards Of their labors
We tell our people to help one another, and
have nothing to do with these national dead-falls
opened here by little men from Yankee land, who
are, to say the most Of them, nothing but the
small-fry OF the gold and stock gamblers Of Wall
street, who hurried down here for sake Of plunder
as soon as the smoke OF battle cleared away. They
arc but lures to disaster; and in their most tender
dealings they rob you under legal sanction it's
pretence.. Their rates are shamefuly usurious;
ner cent monty We are t1hSes 1 Eye r. and and ten
e1tortionate demands of these shylocks, and we
will fare better to toll along in protracted poverty
rather than to put ourselves at the mercy of an
institution that is radical in finances as Con-
gress is in politics.
We append the following from the Washington
Sunday Herald, to show what is thought at the
capital OF these deceptive concerns The Heralds
| remarks were elected by the failure of the Mer-
| chants National Bank, and we are glad to repro
"It has been found, from experience, that these
| national banks can be established with only a
nominal capital, and chat they present great temp
speculation, tending necessarily to ultimate bank
ruptcy. The security intended to be provided for
the creditors OF a national bank by the twelfth
section of the law, amounts, really and practical
!y, to little or nothing. Any set Of bankers or
their legal attorneys, may drive coach and four
through the restraining or punitory provisions of
the law.
| "The national banks are started to make money,
and to make it by lending public and private de.
posits. Some of them have been unusually sue.
| cessful-having doubled their nominal capital
| within yearl AS long the Government retains
| a paper currency OF eight hundred millions, and
nearly all OF 1t, too In one section OF the country
the national banks must have the use oft as pub
lie private repositories. There s no legitima
business for its employment and it is used to ruI
riot in reckless speculation. Will any one pretend
Il that for this city We need q number Of national
| banks for business purposes2 or course, it ia
understood that the public deposits will be used
| for any purpose in the world except that OF fac
tatinng commercial business in this district -
''The brief career Of the Merohants' Nationa
Bank Of this city has ended, and its ,suddon de-
mise is accompanied by curses, loud and deep
from those who had confded in its ability and in
'Tiese bank robbers should be held up to pub
lic execration, and lashed with o whip Of aoor
| pions. Mercy should turn q deaf ear to theil
entreaties, because they are themselves merciless
They have brought want and ruin and desolatior
to many home; and the agonizing mosns of The
the piteous cries OF the orphan, should forever
haunt them, waking or sleeping, as surely these
testimonies of their crte ipustoe will be register
ed against them in high Heaven. ,sr:,'Di 81,
While sincerely syhpathZing with the many
worthy depositors who have lost, or probably vii
lose, considerable Gums OF money by this banl
failure we cannot refrain from the expression o.
persons should have bestowed their confidence
upon such mushroom institutions, when there are
several old and well established banks In this city
known to be perfectly solvent and under respon
sible management We trust that this failure
will prove salutary warning to this class of'oul