The Plymouth weekly Democrat. (Plymouth, Ind.) 1860-1869, 1867-05-16
rom the New Orleans Times, April %.
The National Bank SyStcm-The
First SflaSsl-up Down south
Further Danger Ahead.

Further Danger Ahead.
The National Bank system has received
n pretty severe shock from the recent de-
telopmUnt at Selma, Alabama. 1t is the
first decided knock=down in this section
that the hazardous system has received
The vices which arc laid bare by this ex-
plosion we fear viii bg found to pcrvade
the whole scheme, ana to affect, more or
less, all similar itrtio.ls Forced upon
the country By great esiaencies-cstablish-
ed upon bases which the experience OF two
hundred years has proved tallacious-with-
out adequate checks cr restraints-it is
only necessity that little financial ptess>
ure should tU applied to explode the entire
system.
The Selma aEi;.if develops the following
alarming facts The deposit of United
States funds il these banks is not only un-
safe, emihehtiy dangerous, but is temp
tatiOn and ihducement to reckless expan-
sion and speculation. which must result in
great loss to the Government, in general
commercial and financial disasters, and in
corruption and decentralization of the Off
GERS of the Government All that used to
be said of the demoralizing character ofany
connection of the finances and financial
agents of the government with banks is
now fully realized. The managers of the
banks are everywhere cheek by jowl With
the Treasury agents and repositories. The
banks are often convenient to the sO-called
Office cf the L. S. Treasury In these
high-priced times salaries Of Office do not
afford luxuries, and people who handle
large amounts of money have wish for
Iuxurics.
Why should not the Government agents
receive share of the interest on the loan
of the Government funds, especially as the
Government gets none? Are men who
labor for their country, and whose politi-
cal status is unexceptionable, to be exclu-
ded from all the chances of Legitimate
speculation Is all the profit from loans
of Government funds to be divided among
the stockholders of the bank, who, alas
in too many cases, as in the Selma Bank
case---the First National Of that city--nev-
er paid a cent for their stock If the
Government is generous cnodgh, Besides
giving eighteen millions year for the ben
eft of the National bank currency. in the
form of interest ON the bonds given as Sc
curity for theft issue, to allow these banks
the use of its deposits without charge. 1t is
no reason We officials should, in the exer-
else of our choice of bank Of deposits.
receive no consideration therefor.
In these not very scrupulous :imcs, this
process Of reasoning is natural and loGi-
cal one, and has probably prevailed else
where besides Selma 1t is not bad un-
dcrstandihg, SO fa- es the Government de-
positors are concerned. They have no
risk. They have only exercised their dis
cretion. If the bank should be badly man
aged, should ever trade, should expand be-
yopd its mssns and suddenly encounter
crisis and tumble into ruin, it is not their
fault After all, too, the Government loses
no more than other depositors. And is
not the Government a proper person to lose
through banks it has itself established and
put into operation, and in whose favor II
has enacted laws to extinguish all other
banks, to exclude all competition with It's
own j,rotcges? But the subject is far toe
large and pregnant to be disposed of in
the brief space we can now command. We
propose to resume, at some other time, ouI
investigation into, and exposure of, tht
present condition aud operation of the last
banking bubble