The Rutland daily globe. [volume] (Rutland, Vt.) 1873-1877, 1873-09-26
UNIVERSAL SATISFACTuON.,

Banks are organized, in the country,
mainly with four objects in view. namely
to issue bills or promises to pay, 10 circu-
late and be used as money, redeemablc at
all times in gold or in that which the gen
eral government, under its power to ''coin
money" and regulate the value thereof"
shall declare to be legal tcndcr-at pre-
sent - grecnbacks' or government promi-
SEES to pay to receive deposits Of money
for safe keeping. for the accommodation of
its customers, to be withdrawn ut the will
OF the deposition to loan money for short
periods of time, with good and ample sccu-
rity. for the benefit of business men: and
to furnish at a small cost. money in the
principal commercial centers Of the cOun-
try, so that merchants and traders may not
be compelled to transport by express or
carry on their persons large sums of money
with which TO meet their obligations for
commodities there purchased There are,
1t is true, two other reasons that enter into
the considerations of the projectors and
stockholders in establishing bank, name
ly; profit upon the money invested, and
the fact that a larger business can be- trans
acted with their combined capital than
could be done by each person acting indivi-
dually. This last consideration. moreoyer,is
simllart to the first four named, and the idea
OF all is the accommodation of the public.
With the issue Of bank bills. II larger vol
,me is given to the currency, aud hence
there is larger circulating medium with
which to transact business hut this we
have considered elsewhere The reasons
for, and the benefits Of, receiving deposits
are sufficiently obvious as the fundsof indi-
viduals, firms and corporations are placed
beyond the reach of dishonest employees
and burglars, and although not in posses
sion, it can, at any time, be obtained at
moments notice. With these points, or
the making Of loans of which every bust
ness man has seen and realized the bene-
fits-wc have nothing to do at present, but
our attention is particularly directed to the
fourth object mentioned
We doubt If the profits of keeping de
posts at commercial centers, and selling
exchange or drafts thereon, to business
men, affords any particular profit to our
national banks. When we consider that
they must be at the expense of RENTING
the funds against which they can draw
their check, the necessity of keeping large
amounts on deposit at all times, and the
consequent loss of interest, and offset
against this the insignificant trfle cxacted
for furnishing current funds in Boston.
New York or elsewhere, without risk to
the person desiring to use money there, it
will he seen that there can be no appreci-
able profit in the business. We venture to
say that If the question of profit was alone
concerned, 1t would be impossible to pur-
chase, anywhere in the country, drafts
upon the banks of these cities. We NAV
be mistaken in this, but our own limited
observation leads to this conclusion. We
speak, of course, of those banks which are
distant from these business centers, be-
cause we can understand that the case may
be different with banks located within a
few miles from these points, as the de-
posits could be made, or withdrawn, in an
hour or two, and In these cases, too,
there would be but small demand for ex-
change. In the country, distant from