The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-07-02

bettes who did the lighting received Of rank
and left the service poorer than when they entered it,
would fain leave this subject In disgust but justice to
the government and the people demands that should
still further expose the rottsnness Of these swndlng
banks
All the banks of the State learn are charging more
usury than the law allows frequently as high twelve
per cent, whom the State law limits them TO six per
cent believe no bank In the city has made less than
sixty. while several have made hundred and three
per cent year The president Of Of the banks In
this city was IN 1867 wildcat operator in Indiana and
to-day his bank is rotton as any institution IN tho
State or nation, believe.
that failed at Memphis few weeks ago, am assured
very rotten The State Treasurer who resided here
had school fund OF $500 000 which, instead Of deposit
ling here he conhded to that bank Persons familiar
with the facts say that the moment this fund reached
their vaults they employed in buying up Tennessee
securities, which, under the law, are legal tender for
Indebtedness TO the State and which, since the war;
have been at large discount for purpose OF making
q grand speculation. When the state called for the
school fund the bank proposed to pay 1t in this deprc-
cated paper which the state would not and the
bank "bursted." The treasurer, say q party
to the transaction but he has since passed from earth
Is charitable TO say he was the victim Of others mis-
representations.
might continue TO multiply cases Of this nature until
had filed columns Of the HERALD; but these will suf
fee to convince your readers that the National banks Of
Tennessee as whole are gross frauds.
THE PROBABLE SECRET FUNDS HAVING
WITHDRAWN FROM NATIONAL BANKS
Before closing this already long letter. let me again
refer to Secretary McCuoch and the United States de-
posts In these banks. Tho circular emanang from Mr.
posts from tho banks and their deposit in sub
treasures has now been promulgated nearly month";
and lind not single instance 10 which 1t has been
obeyed, excepting in this city In all the funds
already deposit have been left In the banks but as
collections made by officers they were de-
posted in the subtreasures In my last was inclined
TO censure Mr. McCuoch for not enforcing his circular
but am convinced that no Is pursuing for the
safety OF the government. From what know OF tho
condition of these banks Of deposit, convinced
that were all the deposits suddenly called for not half
the banks or the country could stand the PRESSURE and
general crash wond come instantly. Perhaps II Is
better to withdraw the deposits gradually and thus
the credit OF the government. Mr.. McCuoch no doubt
secs this and acting for the best interests OF the
nation. Such il the general impression OF revenue
officers with whom have conversed. In this CITY all
Cincinnati, aud quarermastes aud paymasters FUNDS
alone remain on deposit with the exception OF small
sum in the First National.
WHIT INDIVIDUAL DEPosrroRs SHOULD DO.
Many individual depositors who have read your edto-
rails and my letters exposing tho frauds OF these
Germs are no doubt at q loss decide what to
pursue to secure their deposits The moment the gov
banks must suspend. There Is but way in which
private deposors can secure themselves, why with
drawing their deposits ut and converting them into
hvetwenty bonds upon which they will six per
cent interest Ia gold which the banks receive.
have now concluded nv trip over Northern New
York, Michigan, Wisconsin, Iowa. Illinois, Missouri, In.
diana Ohin Kentucky and Tennessee and you have the
the banks are In u still condition. but 1t 10
necessary To Investigate them, think have shown
every candid reader that the national bank system
a imposition upon thu public, the
try. swnd'e upon tho governments nuisance that
should be wiped out OF existence.