The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-10-30


The nature Of banks is sometimes said ID
be similar to that of manufacturing com
pHnies. The chief point Of resemblance IL
their constitutions is, that the stockholders
both IN manufacturing companies and id
banks, are bound only for the amount paid
IN as capital stock, and are not liable fol
any further debts Of the institutions, I'd
this particular they are on the same footing q
But IN other respects they differ widelv
Banks are chartered in order to furnish thd
PEOPLE with public representative of valu et
that is, with currency by which their soil
and products may be exchanged. Manu-,
featuring companies are chartered in orde,
70 facilitate the production of useful articlel
for the support and comfort Of mau Bank
deal N representatives Of property, and tn,
interest on these representatives is TIL
source of their gains. Manufacturers gain
by increasing the amount OF actual produc1
ton, for combinations Of machinery diminI
ish the expense Of producing useful articles
Still, although manufacturing companieG
may have an equal amount of capital with
banks, say from 800, 900 to So, OOO, 900, yel
any man may manufacture articles made 5[
companies, or any number Of men MAJ
combine for the same purpose, without
charter or any other legislative anthority|
and they have as much right TO sell their al
ticles in market as chartered companies.
banking institutions and manufactured
compABies be of the same nature, WHY dl
not Legislatures allow individuals, how evei
email their capital, to manufacture and cirl
culate their notes as money, as we'll as q
manufacture goods and sell them to anv oul
who will purchase tbem2 Why, too, dk
they limit the amount Of business that banH
may transact, and leave manufacturing couA
James TO be governed by the discretion III
their directors? II bank-notes be merchant
disc, why not allow banks to sell their not1
tor other merchandise, instead of lendiul,
them for an interest in money? WHY a,
legislatures limit the interest that banNs
may charge for the use Of their bank notch
more than they limit the price of goods
manufactured by chartered companies I? II
is because the notes issued by the banks ale
made public medium Of exchange for al
property, even for the goods Of chartered
mar uiaCturing companies that their Quat
tity, and the interest upon them, are legally
restricted. 1t is true that legislative acti@
has thus far accomplished very little towatd
the regulation Of currency; but these r.
strictions upon it, and the necessity for
gal authority to create it, prove that ltfs
not regarded as merchandise.
The business Of the public generally f
made greatly dependent on that of COD
Paratively few inviduals and corporstiorAB
WHO are empowered to issue bank-notes; FIR
al The debts Of the people must be found Id
uIon and paid in money, most Of whit
'neSe individuals and corporations are alo le
S sed to furnish. 1t is generally uk-
uers'ood that the banks provide a yery larAe
amount OF capital for public use, and it Is
therefore thought just that thew should Ill
celve large amounts of interest. Rnt ifkt
be found that the public furnish all tba IL.
curly to make the bank-notes A safe II
rency, and that the banks gain immsrke
sums 10 interest merely for their labor H.
manufacturing the bank notes, and exchanE.
ing them for endorsed notes Of the peoUls.
Il will be evident that the public is sufferihe
a great and unnecessary loss, and cod
have this labor performed, and the same H.
suits acComuliLhed, or rather . far m4re