The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1873-10-01
s.S1ss ails;isI. PaIi.ssiixtsSpiiht.s;S Z 81

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4 The Baltimore Sun cites several exam
pies of the folly Of h6arding, 30 far ;as
The public is concern ID. 81 Tie man who
boards money drawn from savings.
bank loses his interest. Il ID 1861, the
splendid new building OF q Baltimore
bank was erected and paid Tor ont OF tins
interest lost by panicky depositors.
Even now, it is said thas the New York
savings banks are making handsome
profits in saving the August interest
upon deposits. But the greatest risk OF
all is losing the cash thus drawn outs
An old boot and hole in the wall are
poor substitutes for bank safes. Be-
sides, the temptation to spend, oven if
the money be not hoard@a, is very
great. There is another evil attached to
boarded money, and that is tho oppor-
tunitJ given to the thief, who is perpe-
tually on the watch. We hear OF one
man in Atlanta who drew $500 from the
bank in the morning, and had it stolun
before night.
Any national bank that does not re-
fuse to redeem its notes, though declin-
ing to honor drafts or checks drawn for
large amounts, except under certain cir
within the law, although suffering from
q qualified suspension. The Chicago
banks claim to have the warrant Of The
bank examiner for thus suspending.
Jay Cooke, the liberal entertainer of
hfty clergymen during the summer
months, it is to be feared, relaxed his
high morality when he left the gentle-
men of the black cloth and mingled
with the perverse and stiff.necked gene.
ration without tho synagogue for filthy
lucre. His bank was the agent for the
sale of Northern Pacific r abroad bonds,
and in his advertisement. short time
ago. he urged persons owning Govern
ment bonds to exchange then, for his
bonds without delay, adding that there
was only limited remainder Of the
Northern Pacific seven-thlrty loan." and
that "the unsold balance will soon be
absorbed by current sales, after which
the company has resolved to Issue only
six per cent. bonds" We fear the IN.
lucky holders Of the Northern Pacific
gold bonds will suspect that Jay Cooke,
in making these gilded statements, was
little better than one Of the wicked, nul
that his advertisements were not autho.
rized by the facts of til. cuse. II looks
very much as though this great banker,
having engineered the fvc-tweuty loan
successfully by means Of large advcrtis-
ing, was led to believe that lie could sell
any sort Of bonds. undsr the prestige of
his name, by resort to Barnumizing
and profnse advertising. a good many
OF the bonds were sold. but the house
of Jay Cooke i Cooke & Co. must have
known that they were selling bond
which was not secure, and whose value
was largely speculative. This sort Of
tinanciercing is hardly up to the stand
ard OF strict honesty, leaving religion
out of view altogether.
Ii poor man or woman have $50 or
SlOO it is not easy for him or her to in
vest it in such way that it shall lie at
once entirely safe md reasonably pro-
ductlve. No real estate owner cares to
receive SO small o sum on bond and
mortgage. The poor man or woman
might buy bond, Government or rail-
road, but might be deceived as to the
renl value of tho bond, or the bond
might be lost or stolen. Iu any event,
there would be moro or less anxiety
about the money. Just here the savings
bank offers its valuable aid It takes
this particular $50 or 500, and many
more smaller und larger sums, and put
ting them together, SO invests the money
on bond and mortgage on real estate, or
in the best public stocksand bonds, that
it is able to pay the depositor u better
interest than could be obtained in any
other perfectly safe way. But to secure
this desirable end its investments must
be more or less permanent. It cannot
sell it. mortgages and stocks ut few
hours notice without sacrificing them.
If it sacrifices them it can hope for no
profits, and there will be no interest to
divide among depositors. Yet the banl:
cannot give everybody his or her moneys
Immediately without sacrificing its in
vestments. The unreasouableness OF "a
"rnn" is, therefore, apparent The run
ners do not want their money to use
They only desire to get hold of it aud
assure themselves that it is safe. Ii
they leave it in the bank it is not only
safe, but it is earning interest. If they
take 1t out, it stops earning interest and
Is III daily danger of being lost or spent.
The mass OF nlen and women of mode
rate means, who deposit in savings
banks, arc intelligent enough to see
this They make no run" They are
free from panic, and in this set good