The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-04-09

Knocked down. This seems to be q simple
and easy operation; but it is notorious tina!
1t cannot be carried out without the connlv-
ance Of some of the banks, and it is charged
that one national bank is implicated in the
remembered, too, that when a strlngency
like the present exists, all banks that are
so disposed are enabled to reap a
harvest. They may not. it is true,
take more than seven per cent for their loans
under the law; but the process by which
they manage to extort interest at the rate Of
over fifty per cent per annum out Of the
necessity of the street is very we'll under
stood. Their confidential agents make their
loans for them and receive their quarter per
cent commission, which is divided with the
bank. Now, capital is naturally timid,
and, with six millions in grcenbacks
''locked up" in railroad safe,
twenty-four millions loaning facilities are
taken from the market, money is reported as
very stringent, and borrowing becomes diff
cult matter. 1t is at such time that the
banks, which receive bonus of several mil
lion dollars year from the nation for
tho privilege of doing such business, step in,
after the fashion Of Shylock on the Ralto,
to realize their s'well won thrift" at the rate
of fifty or sixty per cent per annum. The
operations of the lookup conspirators thus
affect all our business interests, and are as
embarrassing and as harmful to the legitimate
commerce Of the country as to the feverish
spectators of the Stock Exchange.
So far as Wall street and its fortunes are
concerned the people care very little what
may be the effect of such conspiracies. 1t is
of no moment to them whether the bulls toss
the bears or tho bears tear the bulls to pieces.
Both sides are alike in their eyes, and one
is just as honest rs the other. The game
of the faro table, and whether the
dealer or the player comes out ahead
when tho box is empty is a
matter Of Indifference to the lockers on. If
the men who are gambling for rise in Erie
to-day could play sharper trick than the
''lock-up" scheme upon the men who are
drawing greenbacks out Of the market in order
TO force decline, they would not scruple to
avail themselves OF the opportunity. But the
people do care for the legitimate business and
the national credit abroad, and they will not
patiently suffer either to be left at the mercy
Of any clique of reckless and desperate
gamblers. They will demand the passage
Of laws that will prevent such illegitimate
operations in the future and the punishment
existing statutes. The national honor, which
has been so long furnished by the stain of the
Erie infamies, is just recovering its brightness
and must not again be dimmed by the unscru-
pulous tricks of men who, if they seem to
keep within the law, only manage to do 80
through the want of courage and determine
tioa on the part OF those whose duty it is to
enforce it. As Congress has taken up this
matter we call upon the Committee on Bank
iny and Currency not to relax their efforts
until they have found a remedy for the evil.
Let us at least have a law, at once, providing
that any national bank proved to have been
willingly party, directly or indirectly,
TO tho locking up of money shall
forever forfeit its charter. Let us
also have an earnest investigation By
the Grand Juries Of all cases Of evasion OF
the usury laws; for these vile systems of
commissions for loans now common on the
market are only the most himsy evasions Of
the law, and should be treated as such by the
Grand Inquest. What other legislation may
be necessary and effective we leave the Con-
gressonal committee to decide; but, at least,
it is certain that the credit and honor OF
the nation demand radical change in our
present system Of doing business on
the Stock Exchange and until this is secured
we cannot expect that foreign capital will
come to aid us in our great works of progress
and Improvement. Ii the evil can bs re ached
in no other manner we had better have q
State charter at once for our Stock Exchange,
under such provisions and restrictions and
guaranteed by such incorporators as will
insure some honesty and decency inside the
regular market, at however low an ebb may
be the morality Of the street.