The New York herald., 1870-05-04
4 BIG NATIONAL BANK JOB.
A Bill Of Financial Abominati ons-orsdit Of the
Government Loaned to wildcat Corpora
tions-List Of National Banks That Havs
Already Failed or Gone Into volun-
tary Liquidation Deposits in Ma
tional Bsnks-Dsp LosseA

Already Failed or Gone Into volun.
tary Liquidation-Dsposits in Ma
tonal Bsnks-Dspos Lossea
WASHINGTON. May O. 1870.
General Garfield has reported nom the Committee
on Banking ana Currency bill No. 1,eool which
provides that certain national bank associations may
pay into our national Treasury $l0a ana re-
celye therefor $780, 900 In godbearng bonds and
currency. The bill. In fact, makes free gift OF
$685. 900 to certain national bank managers, pays
them $4,702,600 per annum interest on SECURITIES
(greenbacks that are now acceptably placed ID tne
market free or interest," and, IN order to make true
the old saying that "the devil always heaps upon
the largest pile" loans the Aforesaid national bank.
ing associations the credit Of the government wthous
limit.
One Of the worst features Of the numerous bills
for increasing national bank subsidies that are
being pressed upon the attention of Congress has
scarcely been noticed. They all provided in effect
that the government Of the United States shall loan
Its credit without limit to any and all associations
that manage to secure 9 national bank franchise
Whether the managers are solid business men OF the
worst sharpers out OF the penitentary all nave tne
credit OF the United States government alike.
wildcat concern like the one that failedn ths CITY
few years ago is served as generously as the SOUND
est bank in New York; and this Is the way IL works:-
A national bank association pays sllo,ooo INTO
the national Treasury and receives therelor Szi"-
900 in gold.bearng bonds and currency, $1loooo OF
the former ana 100000 Of the latter The bonds arc
deposited with General Spinner for safe keeping and
for his convene nee when paying the interest on
them. The currency Is used by the bank In course
Of regular bus iness whatever that may be- Ine
concern being 'national" bank, its circulation
endorsed and secured beyond peradventuro ny tne
national government and having bonds dep0slte0
with the United States Treasurer at Washington 70
popularity credit and opportunity Of obtaining pri
vate deposits that the same men could perhaps
snatiOnari bank, most people suppose as matter
Of course 1t must be good and safe place TO deposit
and act accordingly; 4nS CONSEQUENCES.
from depostors. The biholders are secured, and
when the association returns Its circulation to the
United States Treasurer gets Its bonds In RETURN ana
interest suffers loss But suppose as has been the
and other places, the bank falls after getting, By vir-
ture Of Its nationav character, half million dollars
more or less, of depositors' money.
OF course, In such cases, the notehoders come on
without loss; the depositors lose their all anu tne
Under the Garfield bill any set Of sharpers who can
raise $4,000 may form "nattonar' banking ass0cl.
ation secure their share o. subsidy and 20 at once
AS rule national banks are not as safe deposto'
ries as houses that depend entirely on their own re.
sources; but thousands deposit IN them because o.
| their "natona" character. Congress has no right
to thus loan the credit the government. Let every
| tub stand on its own bottom. Let depositors use
their own Judgment. They should not be induced @ TO
deposit with banks having ''national' character
| but without responsibility Of any kind
| DO NATIONAL BANKS EVER FAILi
The impression has been created by tne Ireasn,y
ring organs that national banks rarely OF meyer ia h.
Treasury Department list of the national Danxs
that have already failed and for which receivers
First National Bank of Attlca, N. Y.
| venango National Bank, OF Franklin, Pa
Merchants National Bank, washington, u. U.
First National Bank OF Medina, N. Y.
Tennessee National Bank, Of Memphis, Tenn.
First National Bank OF Selma, Ala.
| First National Bank OF New Orleans, La
National Unadilla Bank, OF Unadia, n. 7.
Farmers and Citizens National Bank, OF BROOK
Croton National Bank, Of New York city.
First National Bank OF Bethel Coma.
| First National Bank Of KeOkuk Iowa.
National Bank OF Vicksburg, Miss.
| = First National Bank Of Rockford, Ill.
The following named national banks are IN volume
| tary liquidation, but have not deposited United
States notes In the Treasury Tor redemption Of OUT
Fourth National Bank Of Indianapolis, Ind.
National Union Bank Of Rochester, n. y.
First National Bank Of LeOnard5ville N Y.
| farmers National Bank OF Richmond, Va.
National Bank Of the Metropolis, Washington.
| First National Bank OF Elkhart. Ind.
| First National Bank Of Providence, Pa.
| First National Bank OF Newton. Mass.
! National State Bank Of Dubuque, Iowa.
Ohio Ohio National National Bank MM ok Of Cincinnati, a mat Ohio.
| First National Bank Of Kingston NY.
First National Bank Of Butlton, Ind.
| National Exchange Bank Of Richmond Va
First National Bank Of Skaneaele5, N. Y.
| First National Bank Of Downingtown, Pa.
| First National Bank Of Titusvlle, Pa
Aapons pRssonB BsnR SaiOaa of o WIS.,
| First National Bank of New Brunswick, N. J.
Naona * Of vans
| Second National Bank OF Des Mone5, Iowa.
National Mechanics and Farmers Bank of Albany,
First National Bank OF steubenvlle, Ohio
First National Bank OF Plumer, Pa.
First National Bank Of Danville, Va.
| First National Bank OF Dorchester, Mass
| First National Bank Of Oskaloosa Iowa.
| Merchants and Mechanics National Bank OF Troy,
National Savings Bank q ' wheeling, W. va.
National Insurance Bank OF DETROIT, Mich
National Bank Of Lanslngnurg, anis va,, 4 v, o.
First National Bank Of Ha!lowsll, Me:
Pacific National Bank Of New York city.
sSsssas4 aSss1s kssR ksa2R s syss9eeA soPs Sg ga
First National Bank Of Frostburg, Md.
National Bank Of Commerce, Georgetown, D. O.
The following named national banks are in volun.
tary liquidation, and have deposited United States
notes In the Treasury for the redemption Of oun
First National Bank Of Columbia Mo.
FIRST National Bank OF Carondelet Mo.
farmers National Bank Of Waukesha, Wis
First National Bank Of Jackson, Miss.
First National Bank Of CedarburR, Wis.
Commercial National Bank Of Cincinnati, Ohio.
First National Bank Of South Worcester, N. Y.
These lists embrace as will be seen, the names Of
sixtyf0ur national banks that have already failed or
gone into voluntary liquidation
| THE DEPOsrTORS.
The records do not show the number Of unfortu-
nate persons induced BY the national" character
OF these institutions to become depositors. or the
aggregate amount Of their losses It must amount
| to very many million dollars. Not only were indi-
vidual depostors sufferers but, In some instances,
seqently loser Of large sums; though for govern.
menJ deposits In national banks partial security
| in fho oho ~ ffa0