Public ledger. [volume] (Memphis, Tenn.) 1865-1893, 1867-11-18
THE CITY BANKS.

The ClT1 bhNho.
The Secretary of the Treasury, in the
Joy Cooke interest, and pursuing the
Chase policy, is contracting the cur
rency," on the preteDse Of hurrying up a
return to specie payments, endeavoring
to bring greenbacks to gold standard,
which very obstinately stand still at
l4O, or go down in spite of him. The
bondholders and the bankers generally
are delighted with this policy. They are
always very conservative gentlemen, and
want TO keep money matters in the
sonndest condition. So they too, pru-
IDENTIFY in their own interest. and pro-
fessedly for the interest of the country,
90 Oh calling in and contracting, and
giving ont little money for the use of
business men. They tremble lest there
should be crash and failures, predict
terrible calamities, keep up the price Of
the article in which they deal, and all
other prices down and, all in all, serve
the public so little, that it calls for mi
croseopie observations TO ascertain that
the people are benefited at all by
them. If the price Of avoiding sp-
pretended evils is to continue the present
condition of the money market and keep
on contracting and calling in, without
new loans, we think it rather high price
to pay, and that majority Of our BUSH
ness men would rather let the crash come,
and take the terrible consequence Of
few loans and the trifiiug initiation. We
do not see how a change Of policy in this
respect can make matters worse for the
public. 1t might be against the interest
Of brokers and broker banks; but it can.
not be said to be unsafe for the banks to
do legitimate business with fair profits.
Do they owe no duty to the public, which
would be as well off with broken banks as
with broker banks; and better, too, by
saving the cost of supporting them2 The
times may call for a measure of prudence.
Bnt if our banks are so weak that they
cannot discount at all, when they are not
required to pay specie, we think they are
too weak to do business at all, and should
not be trusted with individual deposits.
We have in Memphis some eight or ten
licensed institutions, pretending to do a
discount business, at a cost Of the same
number of fine buildings, the salaries of
some hundred employees, and twice as
much more besides enough to furnish
facilities on good securities to the
amount of five millions a year for the
use of our business public. And we
doubt whether one hundredth part that
amount finds its way to the pockets Of
our citizens in the form Of loans. When
the bankers know how to realize brokers
rates for their money, and can command
two, three and five per cent. a month,
wrung from The distressed condition Of
their fellow-eiiizens, It is not TO be
expected they will loan, except to
favorites, at ordinary and legal rates Of
interest Those business men who may
be "in the ring" sad know how to get
the money behind the counter. which is
not given out over the counter, may do
very well and thrive for anght we know.
Bot II is true, nevertheless, that system
Of banking without discounts and loans,
and which is mere brokerage business,
on small capital and small deposits, in q
time Of stringency in the money market,
induced in large part by the fact that it
suits the bankers better to shave at Eve
per cent than TO loan ct one, is no great