The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-03-06


The suspension of the First National Bank
OF Newtop, Mass, and the First National Bank
Of Hudson, N. u, as well as the difficulties of
the Mechanics National Bank Of baltimore,
and Of other national banks, the facts regard
ing which we have published heretofore, show
that with all the privileges these institutions
hold, and with all their boasted security, they
are not az secure as people imagine. They
make enormous profits, it is true, and should
be sound enough, but they are no more exempt
from rascality and reckless speculation than
the vericst wild cat banks that ever existed.
Indeed, these institutions being invested with
the title Of national banks" the people are
more easily deceived and cheated by them.
The public is actually misled through Con-
gress having given them national name and
something of q national character, while the
Eovernm mt is in no way responsible for them.
True. there is a deposit of securities for the
redemption Of their circulation but in
great financial crisis and general breaking up
of the banks these securities might become so
deprecated that heavy loss would fall either
upon the people directly or upon the govern
.fnent. The Comptroller of the Currency says
the government would be bound to make up
she loss in such case, though we think that is
doubtful. Whether this be so or not the
people would suffer either directly or Indirectly.
In any case, however, the government Is
not responsible for their business; they may
take deposits and ruin their confdng Gus
|. toners as readily as any bogus lottery concern
La "a ha, h.
Il is time, therefore, that the people should
understand the character of these institutions.
/ III is time they should look out and be prepared
for more general SIN Ssh among the banks
when they see one after another breaking up.
The whole system is wrong, deceptive and
a gross fraud upon the people. The more we
look into IL the more surprised we are at the
stupidity and recklessness Of Congress In
giving it legal existence, with such monstrous
privileges and power The Bank of England,
with all its services to the State, never had
anything like the privileges the national banks
have. We give them the profits on circula-
tson of three hundred millions, worth over
twenty millions year, which properly belong
to the government, and which the government
might save by simply substituting legal tenders
| for national bank nodes. Besides this the gov
eminent shields them with its credit What do
they give in return for all this2 Nothing
| literally no,hing--not even safe and stable
system OF banking On the contrary, they are
the lecches that draw in the lite blood--the
Industrial gains--of the whole community.
Worse than that, they are both monstrous
monopoly and dangerous political machine.
If permitted 10 continue their existence IT Will
hot be long before they will absorb the
wealth and control the dcslinics Of the repub-
ic. The law crnting them should be repealed,
when, ii they should choose to continue their
tjankihg business, they might do SO on legal ten
lcrs and under proper regulations, prescribed
by Congress. We need not run into loose or
Tild system Il the present one should be abol-