The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-06-20

HtChl CuhhtSFuNWHCe VI IM heAlu.
How They Are Run In Indiana-The Wild Cat
System In Full Blasf-Tho Banks Organized
and she Circulation Issued In One Place. and
the Business Transacted In Anether-The
Question Of Bank Taxasion-Thc People OF
the West Aroused.
IsDrAsAPoLn June Il. 1897.
Next to nlinos perhaps Indiana contains dsspsr
financial advsnturen than any state in the Union.
II has long bean 20 shown in the wild cat business Of
the banks some years ago. when stump-ta currency
was spread broadcast over the country by concerns
whose hsadquartsn were the town pump and whose
vaults mot unfequsnty the brssches pockets Of the
directory" With the era Of stump.sa fresh In my
recollection expected to nd in this State corruption
and rottenness Of the rauksst kind. Ny researches
have moro than realized my antcipations, and Indiana
carries on the palm. The system that pursued in
Illinois prevalent IN Indianapolis the fountain head Of
all the financial deviltry OF the stata Many Of the
banks have than one-half their entire capital con-
santly floating about in financial ventures besides
very large part Of government and individual deposits
which afford them nne source Of revenue, and in
merous instances when the government has suddenly
drawn upon them for one-tenth Of the amount on do
post the banks have not had the funds in their vaults
to meet It, and only saved their credit by obtaining
few hours grace.
city few weeks ago. The treasury drew upon bank
for $40 900 OF half million nearly deposit Tho
tire available funds Of the institution with tho sxcep-
ton Of interest-bs bearing the point Of
turing, out The gold interest great empa-
ton but the credit Of the bank must b maintained.
The party presenting the draft appealed to for time
until they could borrow but he must leave on the next
train. The cashier In quandary; but the issue
must be meta protest and the loss Of the government
deposits the sacrifice Of the interest. The latter
taken. The gold tinted paper paid out
and passed from the gaze Of the cashier like beautiful
dream 70 the pocket Of the government Official.
THE PRIVATE AND NATIONAL BANKS
Throughout Wisconsin, Michigan, Illinois and Missouri
the private bankers . unit against tho national
banks, which, they charge, are given advantages
that individual corporations do not possess AZ
. matter Of course they show disposition
10 help the nationals out OF difficulty when
they short. There so much antagonism exist
ing between them that all private bankers are de.
tscves to scent out the Irregularities Of the ocas Of
the national banks and consequently they keep them in
constant terror Here in Indiana the is the
Nearly all the old wild cat operators league With
the national banks Many Of them own national bank
stock and in directors and the funds
Of the institutions at the counters Of their private banks
bee WILD CAT CORPORATION.
company who, wishing 70 reap the advantages Of the
tonal system and stfl carry on private transactions
this commercial centre, resorted to clever sxped,ent
V accomplish their purpose Thsy could not ~
cure . circulation In Indianapolis, and to ''whp
The devil round the stump they repaired
the rural town OF Franklin, joined some spectators
there organized bank obtained circulation from Mr.
Comptroller spinner and secured considerable govern
ment deposita They have oice in Franklin, whore
''bnd" business ID transacted: but the deposits are
shipped to Indianapos where the entire business Of
loans and discounts 10 conducted and the deposits
constantly being paid out over their counters in every
day specuIstiona There several similar cases that
might b insanced proof Of the corruption that per-
vades the systsm. One Of the Indianapolis national
banks, with capital Of half million was established
by two private banks which still closely allied with
H. and constantly employ the resources Of the national
bank u the counters Of their private institutions
4 suaossnoH sscRErARY A'cuILocH.
Secretary McCulloch 10 doubt deeply interested in
the Of his pet scheme Of banking, but he
fsS removed from the West that be has opportunities
Of learning Of his knowledge Of the nom
sucesw q We system. He i weighed down with
muluplcly Of cares and would suggest that he OBJ
tain esys Of absspcs aad visdt his cid homo In the
Hoossr State. whore he yin nnd moro corruption than
ever existed under The old Wild cat regime, that made
the state % notoriouA W #E
|. RANK TAXATION.
The question OF bank taxation the present moment
Attracting much attention in the STATE and the people
eene.lly are loud in their condemnation Of the law
that permits these huge moneyed monopoles to invest
their capital nontAxabls government securities An
Indianapolis paper has recently produced able ar
css sxpoaing this great nusce which has alarmed the
monopolists and called out Mr.. English in defence Of
the systsm who In lAbored effort complained q the
burdens OF the banks and sndeavorsd TO make
good showing for them. The paper In question re-
tursed TO the issue, and with the argument Of figures
cation OF which Mr English has retired from the contest
in disgusk The paper referred 70 says
The First National Bank Of this CITY deposited It's entire
therefor ssso co. in ersuisns soss The B.nf law psr,.
the % loan: n: rae 4 sam %
per cent interest So The WIN stand thus with the First
Interest circulating $4,000 At 10 per cent
Taxes on ssooooo A. Sper cent 1000
Gain BY the bank s. M .r,... ~ *. $1,000
banks are taken into confederation advantages are
in sG % ss h Sss 's Psl .
s s. sg. hs . Il ssS asy c
n sso s'a " sas . %sa on $500
Tar on deposiis Ssif o. one per individual
rIHS 1. % ssocS STATE and county say one and one
we have not the report of the First National
viii take the report OF April 1850, TO show the
s Nosss asd bIls aiscounssd sE4 90
Due from banks ana ................ 13a7<l
Due from United depository At Cncinnas 10000
o1 uSiss s' ssss. Uono. uosOs
ass s'a's. 0o.a' no7D
isms ina.a. v'... ~ Hs7
Furniture and erpsnss ............. glS5
Lawful money Of the United Statcs7J
spscie ................'s..... axM1S
Legal tender and national notes. 7HM -
Taxes for six months only. A7n
Total . 7sl,77s
In the foregoing there about one million nine
hundred housand dollars which the oank reeslv
Ing interest," and Jet only pays this year about S0Ooo
taxss according 70 fte own showing or nomisson.
II this amount Of 81 80 900 Invested IN ax paying 81
eur!iesnosss mortgages goods lots Or tensmsns ocsssd
In this city, and yielding more gross interest," ne tAxes
would amount 70 about threeold more 10 this dnerence
TAXATION iussi The First Natcna. hAs AZ exaeusnas
/ able. -