The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-05-14
cerrespeadesee Of the Nsw Yerk Herald
A Rig NATIONAL BANK jos.

tne usual qaanuty per acre.
- :
censspsaasses Of the New Yert Herala.
A Rig NATIONAL BANK JOB.
BILL or puAxcIAL AssnruA rross-cusp.r or r..
ocvnsnsss LaAasp 20 vslDssr csaPoaAfsess-LIsf
oT nAFHonAL BAHKs RnAr EAvs ALRBADx YAILRB on
eons nr0 vo&uR1Any IsoglDAfsoH ~ nA-
rIozAL AANks-Assoaasass LossEs
WAsHrSoToN, D. c., May 2.
General Garfield has reported 10 Don
gress nom the COMMITTEES on Banking
and Currency a bill (No. 1,9OO) which
provides that certain national bank associa.
tons may pay into our National Treasury
$104, SOC, 900 and receive therefor 8199,-
SOC, 900 in gold-bearing bonds and curren-
cy. The bin, IN met, makes freegih Of
e05, ,000, 900 to certain nakioaal bank mana
gers. pays them "a, ,7O2. 500 per annum in
tsrest on securities (gresnbacks) that are
now acceptably placed in the market free Of
interest, and, in order 10 make true the
old saying that, " he devil alsoays heaps
upon tke largest pias, loans the Aforesaid
national banking associations the credit Of
the government without limit
One Of the worst features of the numer-
ous bilk for increasing national bank sub
sides that are bsing pressed upon the at
tention Of Congress has scarcely beea no
ticed. They al provided in effect that the
government Of the United States shall loan
its credit without limit to any and all as
sociations that manage to secure . bank
franchise. Whether the bankers are solid
business men or the worst sharpers out Of
the penitentiary, oil have the credit Of the
United States government alike. A Wild
cat concern like the one that failed in this
city few years-ago is served as generous
ly M the scundest bank i'm New York !;
and this 10 the way it works -
A national bank association pays . 10, 900
into the national Treasury. and receives
therefor $4,000 in gold-bearing bonds
and currency, el10, 600 Of the former and
and &100, 900 of the latter. The bonds are
AspsaiGa2=zilAs 4oea~E.2. =asiazse &Ae= nAs-
keeping and for bis convenience when pay
ing the interest on them. The currency il
used by the hank in course Of regular bust
ness, Whatever that may be. The concern
being national" bank. its circulation
being endorsed and secured beyond perad-
venture by the national government, and
having bonds deposited with the United
States Treasurer at Washington to secure
Of course enjoys degree Of pO-
palarity. credit and opportunity Of obtain
ing private deposits that the same men
could perhaps never have without their
national" franchise. Being national"
bank, most people suppose as a matter Of
course it must be good and safe place to
deposit, and cot accordingly.
THE CONSEQUENCES.
Suppose ths bank fails before receiving
from depesiAors. The billbolders
ars secured. sad nbAn the association re-
Turns its cireafstso9 to the United States
Treasurer it gets ia bonds in return and
10 interest suffers loss But suppose, 40
has been the case with national banks in
this city, New Orleans and other places,
the bank fails after. getting. by virtue Of
its national character, half a million
dollars, more or less, Of depositors money.
OF course, in such cases, the noteholders
come off without loss the depositors lose
their all, and the bank managers retire to
enjoy their plumber.
Under the Garfield bill any set of sharp
ers who can raise $50, 900 may form a ''na-
tionar' banking association, secure their
share Of subsidy and 60 at once to work en-
ticing unwary depositors to ruin.
As rule national banks are not as safe
repositories rs the houses that depend en-
tirely on their own resources but thous-
ands deposit 10 them because Of their na-
tional character. Congress has no right to
thus loan the credit Of 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 a 6 national character,
but without responsibility Of any kind.
DO NATIONAL BANKS EVER FAILf
The impression has been created by the
Treasury ring organs that national banks
rarely or never fail. l have therefore COM
piled from the records of the Treasury De-
partment list Of the national banks that
have already failed. and for which receivers
have been appointed. Here lis -
First National Bank Of Attica, N. Y.
Venango National Bank of Franklin
Pa.
Merchants National Bank, Washington,
d. G.
First National Bank Of Medina, NY.
Tennessee National Bank, Of Memphis
Tenn.
First National Bank of Selma, Ala.
First National Bank of New Orleans
La.
National Unadilla Bank, Of Unad,lla
n. Y.
Farmers and Citizens National Bank O
Brooklyn, N. Y.
Crcton National Bank Of New Yorl
city.
First National Bank Of Bethel, Conn.
First National Bank of Keokuk, Iowa.
National Bank Of Yicksburg, Miss.
First National Bank Of Rockford, III.
The following named national banks are
in voluntary liquidation, but have noe de-
posted United States notes in the Treasury
for redemption Of outstanding circula
ton =
Fourth National Bank Of indianapolis
Ind. F
National Union Bank Of Rochester
N. Y.
First National Bank Of LeonardsviNe
N. Y.
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