, 1877-12-17
tbs cleasioga Of The week aro reported a. follows
by Manager D. Il. Halo, Of The Chicago Clearing

go sstt'%.tt
SsS:S.;:: =: s:Sii ::$i| ;ss' ;;iSs'
corfespondns week iii sSar. 5l.ua2 I'll 3ial III
nANKlSu IN GERMANY.
The BcrlIn correspondent ot the London T7mts
the 1sts disastrous failure Ut Tho lttorschaf.
Ilct,p irtynt I!ank ut Rtctttn as tho nccason ot
valuable description Of thu faulty modes OF busi-
ness adopted 6s the hanks Of Germany oitstaa Of
the Imperial Hank In Germany, tho Hoard Of
Directors Of bank are ordinarily Ignorant Of tho
details Of ttA business Thu manager IA practically
euprome. Meetings Of tho Directors arc rare. and
are u.nalIY limited to the transaction OF roul!n0
bueneFs. hut moro radical dofGct Of Gcrrstn
banking r. In the nature OF the business the banks
permit themselves TO do, The German National
LINK unnopUlizVs nearly all tho legitimate dis
colnt hurncsJ. Thu private and Jolns.stock
banks ocrupy Themselves with alt rosis Of anan.
,Eal agencies aud ventures. They arc s.ock'brok-
rrs. iobbers. conmlsAloh. .aHents. spccntatGrs coll
tractort. and Crrd!t. t.,lob!ifcrs. They start
:ompAnlcs, nnacr,ake public works.-aru ready.
In nhott, to engage In any enterprise
that promtscc largo pra1ta. Their bnsness 10
speculative. and not whit IN England and America
l. considered to be regular banking. Tho private
nnl jo!nt. stuck hanks mr.. fnrced Into these opera
tons. because tho prnC,ics uf icpOsftng balances
III oanks .peu nut prevail nn.ong herman htslnets
1c unlehs they rcCetye tntureHt. A'itl because tie
lupcraal }ank munopollzrs tho dscnnnt busncHs.
Ills tlriscs tile oer banks Into variety OF trans
actions iurelxn to bnnkinR, a. We understand It.
The German Dankcr buys md sells stocks for bis
customers, bringa ont OF takcs an Interest In. nav
stlte. mAnlcIps+ Ut corporate loans, buys large
a;lntr Ut tlecu1ntiy stocks. anl Joins syndlcnes
In ttnl.I OF s,ecuInfnn. Sometimes Herman banks
wilt declare dyi!r,t- uf 70 utr cent; moro 0flen
they hive to wrltc oil hcuvy lostes Incurred III
ventures no English OF American bank would
I'eaae "Ha' ,ow, ,,r,
Thc.s arc two kind. pf banks In sh!s State, those
o-ranlz.,) rmtc. ,t,s rrn.rat law. aud savings
h,n I,t H., !, nav +wuniv or. I, avj.,a,ro vii,
erost ns.et# of s:ai, INN IL; liabilities. enelus-
I've DE cIp!tAl, 81 l0l 014. HI, Individual prufts,
SlgU. ht',.t5ti Jf general anks thcro ara thirty
one. with gro*s assets, s;i. Snt Gsto, mn 'nersasc
Of s5oi 71 NJ 1T twa Year,, and Increase Of casll
capital d! sIli. TO- Ill Tho reports Of these hanks
n,nda to tho stats Auditor arc sntl4factafy. md
show ss:o condition md prudent management.
Dut ths d7u4 not Include huniEeds Ut pFtrate
banks, in wh'cl. thu dcpoiltors ami public are In
tctcstta III re3nra 10 their sfAbillv equally Wish
tic Siate banks. With regard to such 6tato Audit
OF shvrs1sn suJ":
The man vim sdvcrttees himself a. a banker. and
tolleNe the euaNsonce y! tns gGHeMss' ~ pa"ho " ~
ti .it',t 1.,a ti Inv ;.o,rrr a.o cnynIxsn:a If
bin hu,iu.,sr nu,I regulatu io Insnner of cu.lucl.
taK t!In .a,Ie. 'r4c p"9c have the right TO know,
unu shonla os lhinrte1, - 10 !Ae t1na nhaheiaa
e :" ~ ~ a,F' @ pa9tnsss Wv w thu,
pubc or prvalr funds. md Ucensutlnl atatgi,euls
lHc,eof rhuuM ps required the same ~ tfnm tn'
Sntpo1ateh naoas. " ~ asuaT a ~. ~ tne
nm Every IniIytInai ur rSmnany. cnsa.fns II.
public laukin9 and sollc!tIng patronage IN .ucll
enlstprisc shuasd be required To- exhihlt tAyltal,
.s mun ~ % H. " Me" nM ~ ~. &c tm;aW
~; az ~ ~ -, ~ .syiut. h,,ts In ,Isr tst
r.,ay he astrrta;nrl iLn de.Tro Ut credit whlch
EIonld be c1tentsed thereto. The law should nl.o
pfovlue as.c.o nsnates ,, !on W ~, .e.eo''
irn,,irt,n., nj ihi4 rhnrnrtnr wuujI fuyust the
bussns.s with security which dos. not nav nu.
tstl. anI. In my Judgment u tlapcrattsey ae.
iAanaeS ~ )astics H. VI nsop'e ~ Well ~ ID Inc
'"'e'e't' VI soAta eANA'"s'
~ .h A"e"n - tHoe "a"A *"Ao""'
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80. NV nv, ~ a.. ~, nv, ~ -. s,s,. Il, t....
:. 49,, 49,, t,, ~. 49,, -tu"s.s.,.. sn
s's..".a n',,x ,"..~...,. =, "~,,sIs'i T.; 49, =
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s'.,'.'... ~ ~" m,,'s s"s s"U :, s. ~"
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,,.s. s ~. h.,na. "s"n aaat T,s s"'.s.'' s"1
.'. .''s.,s - txrI. ~ ,,. sS. .s.'''.S. =.
~. sIs, ,on,...,nn ~. ,.s,, ~ s...., ,,., IT,.
.t-s ...,,n.. ..I .nr,,r. ~ ~. ~ IL .,,,... .N
an.s M. i,.n. h,1 m b,nn a, ,hn ,in. NJ T.,
.to,, q, aa,n nm i, nn,crrmcn. ,onI. ~
rontd h,vo .tn.i . rnm for ann, i'm. In, ~.
lru,cr. thouuht II better lint aIl depo,1ar. shnu1
saars ,,iEr and ror III. tca.un p,ucsd tbu tanL in
a. h,n,. ~ III, st.tn onnr.r.-
mn ,r.r,rr.,,,xu pu.un.
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~ t's ,.,4.aA ~ .Ms I1s ~". ~ -. s,.r
noH H..,. =. ~. ,,ts.s.'. "" .'.s ~ ss ,ns,i..
" s,,',. ~ ~ AZ" ~ a.. .,saLs .ha,. .ha
~. e..n MN ws. I..,r..d nx m. ,r,...ura, In
tns in.,,c, ,,nr,I,,.s tonnt .ra ,rn,,,t that
,hnuvh trrr,xrd Nv tbo fp.tlcss o,,c.,, II wus hal
,;ir,o, h. th., -, ,,,o .,nrLn,ILa,. M trnc,
=, ~. m,n.y run l.. ,,i.roy.rrJ 1h. rash, ,hnuk,
a.. o,tor v.,uah,. dorn",rnt. h,v. a.s,nrr.,.I
,rn,, w.. ro,,n.nv,. o,tcn n, nn,r.,. .s,xtr, IN
,I. -, ..,,..i th,1r .r',n.s,,,"ns .na h,ma. ~,