New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1867-02-09


Stevens now before Congress. If there be any
other, what is itP
BLINKING FTNANCIERS.
The Illinois papers find fault with the Hon j.
S. Morilrs speech on the finances. What won
der9 Mr.. Morrill,, like every other sound man.
wants to get back to specie payments. John
Wentworth rears his tall form alongside OF
Mr.. Morall. But we do not know If there Is
another Illinois statesman who Is not IN IaVor
of an eternal suspension of specie payments.
.Judpine from the condition of the banks Oh
that State. we should think they might be.
The condition of these Illinois banks Is
Gsfih;ted in the following table Behold the
sInnoI, in which they wallow. We omit frae-
tons: s'-v-1-,----.--.....-.-----..-. segy-I11r-
Table Snoring he Condition Of he Illinois Banks,
Oct /, 1896;
Capital Stock. l,W1OU
Loans. .St7,0O0,0O0
Loans on Govt Securities. 13,OOO,OOO- 3O,OOOOO
Circulation .......--....---- -...'-... g,40O1yyS
DepOss .-.-----'-.--. lo'0V0, 0vV
Specie 10000
There is q banking system for you A lot
of banks lending thirty millions Oh eleven mil
lions of capital and owing twenty-scven mil
lions on demand, with a reserve of one hundred
thousand dQlloIS in specie. TO be sure, they
have near six millions Of Uncle Sans promises
to pay, on which to base their twenty-seVen
millions of indebtedness, and we do not aim
to bclttle this species of security. They are
az good rs anybody's promises TO pay can be,
rho cont pay.
But our excellent Uncle is just now in o state
of insolvency on his demand notes. He does
not even give his note for them drawing inter-
est So that banking on his promises is simply
issuing one promise TO be redeemed by anOth-
er. Ii is just as well in dealing with this ques-
ton to strip It OF all disguises and tell tho
plain truth Our National banking system is
rotten system. and the longer it stands on the
basis of iuedeemable paper the more rotten it
will become.
But il was not this point that we were driving
at 1t is that the Illinois banks have loan of
S3O,OOOe coo, based on Sll 100000 of capital, and
owe S95,0O0,OOO on demand, and have in their
vaults 100000 IN specie. Deduct their legal
tender reserves from thcir S21, 900 900 Of indcbt
edness and the case is simplified still further.
They then owe over SCI 10000 on demand, and
have 100000 to pay with.
Is it to DC wondered at that the Spokesman
of such a banking system as this should resist
resumption2 1t is nothing but species Of the
wildcat" banking with which the West is 50
familiar. We say again, we do not want to DE
understood rs traducnS the character Of our
common Uncle, or discredhing his promises to
pay. We only say they are nothing but
promises, and are, therefore, while very good
for some purposes, totally unfit basis for
sound banking. And, while these broken
promises are held up as the perfection OF so
curity, and the acknowledgment of the fact
almost made test of mans patriotism, the
banks presume on that state Of insolvency. aud
declare that they have perfect right to be
judged by the rule applied TO the Government.
And, if anybody decries their condition, they
answer, "The Governments broken promise
"is good 80 is our broken promise. We are
stretching our credit but SD has Uncle Sam
stretched his. You recommend specie pay
"ments. See how we sail on the sea of paper
money What do we want Of specie pay
"mentsl Can we pay twenty millions with a
bundled thousand dollars, which is all the
money we happen TO have by us' Just go
"your way, and leave rs to our wild -cat
banking
All this is very natural. And wherever and
whenever banks have twenty millions 70 pay,
and only 100000 to pay with, we may expect
resistance TO the resumption of specie pay
ments. Such banking is filling the pockets of
bank stockholders, by paying them 12, i5 ana
"a per cent per annum-a profit which comes
out Of the earnings of industry and IN its ex-
cess is just 50 much feeCed from the pockets Of
the people.