New national era. [volume] (Washington, D.C.) 1870-1874, 1873-04-03
Banks and Banking.

The story Is told OF Rhode Island lauLc
who flourished sixty years ago. His nam
was Dexter. Mr.. Dexter ,arted hank oJ
/ sl9 900. which hal circulation Of S6OO, O..
before six months. The notes were Andrew
Dexter's promise TO pay the Directors Of tn,
bank at the end of two wears, sit Icing un
derstood that said Dexter shall not be calleC
upon 70 make payment until he thinks prop
er.' The basis of this convenient prOvisC
was, that Mr.. Dexter was the principal stock.
holder, and, OF course, knew best when il
would be proper to paythe notes. The main
rule OF the bank was as follows:
The general rule should undoubtedly be
TO pay punctually, but TO this th4re are I'M
portant exceptions, such as when We arc run
upon by brokers, or any persons whatever,
merely Tor the purpose. una..ing a profit out
oil the injury and loss ofthe bank these ought
to be paid only by drafts on the exchange
office Gin Boston, al forty days sight. The
providence bank should be plagued as much
as possible. by OBTAINING them rs long as it
VIII naturally take to count all kinds Of spc-
Gle change intermixed in the most deliberate
manner. The change Is very important, and
ought To be husbanded rs much as possible,
never 10 take it away except where the in
tenuon Is to plague and delay the person.
Mr.. DeNtcr's bank had a single emplovt
who with the principal transacted nil the
business.
We have all heard the story Of the bank in
Albany, New York, which issued some new.
bright, and crisp looking bills. \ drovcr,
going West, applied for loan. He was
good, and it was voted him. The question
came up whether it should be paid in bills or
gold. said one honest old director: I'm
asln letting him have the bills. He " III take
them out West, aud they will scatter around
and there are ten chances to one that we will
never see one Of those bills agin; andif they
do ever come back, those real nice, clean
looking bills will be all over dirt" This
settled the question, and the drovcr received
the gold.
Inc personal responsibility Of banking
men has been frequently noted. The case
OF Hon. Alexander Mitchell, member of Con-
SreSs from the First District of Wisconsin.
ana President Of the mammoth St. Paul Rail-
road Company, is an illustration in point.
Mr.. MitchelPs bank had fully 81 500 900 in
circulation during the famous Western Wild
Cat Banking days. Although he was alone
responsible, the farmers and the miners and
the merchants hoarued those bills rather
than hold the gold. Once there was n run
on the bank. Mr.. Mitchell, instead Of an
noying the bill-holders, threw open his bank
ing house from daylight until late at night,
and put on an extra force Of clerks that ali
might be accommodated. Before the run
mad finely gotten under way. the very men
VINO had drawn the gold earlier, came rush
ing back with it, and to get in aud deposit.
Jostled those trying to get the gold out.
When Mr.. Mitchell wished to withdraw
his circulation he had more difficult work
than when he wished to put it out PeOplc
would not give up the bills-all knew they
would be paid, and long after the limitation
expired the banker was advertising and re-
sorting to every means to get in his bills.
Although the bank was closed years ago, it
was only as lately az tbs national currency
came up that the last of the bills could be
coaxcd away from those Tho held them, and
exchanged for gold. There are few bankers
who would have done this, but Mr.. Mitchell
never considered that he was doing more
than his duty.