The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-07-31
n,he National Banks.

aoa;i1 is the hue and cry raised against
tho National Banks because Of the failure
Of several at the North, whose exhibits
only tell the old story of reckless specula-
ton, betrayal of confidence, dishonesty,
and depravity.
The banks announced as having failed
are aThe Unadilla Bank" Otsego county,
New York cause Of failure, provision and
stock speculations capital, Sl50,0Oo; La
bilities, 100000 "Weedsport National
Bank" Cayuga, New York; cause of fail
IRE. stock speculations capital, Sl0D, 900;
liabilities, s125,000. "Newton National
Bank" Middlesex, Mass; cause of failure,
defalcations Of officers and bad manage
mcnt.
All these causes of failure involve
official infdelity-an evil that has been in
separable from all systems Of banking ever
pursued in this country. We know of no
sure protection against dishonest agents.
Where money is the trust confded, the
temptation to infdelity is strong, and the
power of resistance oftener overcome by it
than any other. The true protection is in
proper accountability and supervision.
Not only are bank officers those who
should enforce this accountability and ex-
ert this supervision, but a community deal
ing with bank should also be vigilant IN
seeing that there are no departures from
the proper order and regulations Of bank
ing: that bank officers are not reckless
SPECTATORS, and that the money they use
in speculation is their own, and not the
banks. Every depositor in bank should
feel that his deposit is safe because OF the
integrity and business habits OF It's olhcers'
the good order with which it is managed,
and the general prudence of all partlcl-
pating in its direction and control. Some
times all the protection Of the law and all
the vigilance of officers and business men
fail TO save the bank from ENLIGHTENMENT
and depositors from loss; but in proper
ton as these guards are employed will be
the safety Of those who put thoir trust in
banks.
The Government has meyer yet been
able to devise plan for the protection OF
any but notcholdcrs, and not always these.
Millions of dollars have been lost to the
public in the worthless notes issued by
broken banks. Indeed, the most famous
bank ever established on this continent
the Bank of tho United States) did not
pay it's noteholdcrs five per cent.
The present banking system assuredly
protects the noteholder, and in that re-
spect it is better than some that preceded
it. 1t was an ingenious arrangement to
strengthen the Government by basing the
entire circulation of the country upon Go
vernment credit. AS long as that credit
is maintained noteholders are secure.
But the banks are managed by men who
are subject to temptation and surrounding
circumstances. The period is one emf
nently speculative. Men everywhere are
making haste to get rich; and everywhere
failures mark the folly Of this ambition.
Tho roorlo vf oteesv, and Cayuga, and
Middlcsex, were probably much involved
themselves in the ardent pursuit Of sudden
wealth, and did not therefore detect the
irregular conduct and wild speculations of
the bank officers, who were throwing away
their 1.-THE pcoplo's) money; and they suf-
fercd thus from the common frailty and
common evil.
But that the banks must be all destroyed
because of the villainies practiced by the
. officers of some small institutions, as
some journals are demanding. is absurd.
If, indeed, a better system can be
adopted, very we'll but until that reason
for change be presented, we see nojusti-
fable ground for the general war on these
institutions. The very small banks and
the very small losses in the aggregate is
an occasion greatly disproportioned to the
fuss that is made. Almost any month in
the year an INSCRIPTIONS bull or bear in
Wall street fails for more than all these
shops united! Can't we get up war on
these gentlemen They are the workers
of the chief evils of these days.