, 1879-08-21

drnl A bunk stnslds to Tie business cum
mnnlty in the relation at tho sumo time Of n
debtor aHt q creditor. 1t Is debtor to TIA
deposition nd creditor TO those mites and bills
I. h0laG. When the dcpositors Of bank be-
come cmbarrassc] itry Will Withdraw their ,le-
poslts, and tltreby diminish t1.e fnn.la witt,
which the bank npcratcs. When The debtors Of
bank arc ruined, tiI"! cannot nay tlr'r drbts,
AMI The hank holding thrtr discounted
papers Ia one of the first creditors to suffer
loss 1t H. therefore, lhc nlniifcst interest u a
bank that It's c,lsomers both Ientors aud cretllt-
ors, be r. a. solvent md prosperous condition
as possible Az everybody knowt, In times Of
prosperous business the hntska mike n,unay+
aud In times Of business 'lrpreasfon banks arc
duc'cd TIT thr aoundcat principles. During our
late bustness crisis the average earnings Of the
National banks to capital and surplus went
! down from nearly IL Der cent to Ices than w
Pss ssnt: tn, aggrvgate os,cs o. .i'e National
his amounted to s0s, l1o,4l5. And now comes
ien. Ewing md tells us that the NationnI
tanka. over 2.0t0 Ia number, scattered alI over
stockhnlders, majority nf wiIurn arc peop!c Of
| limited tnea1Ie, will h0' so Insane rs 10 think
that they can increase ttrir wealth BY
running thc buslntRa community. md that they
iiah The fa'ntcst conception Of the natural rela-
tim Of baf,'sa 10 thu 6usEncss interests of the
| country would Tor mutntns entertain, much
lets express, 10 utterly wild nnt prepostcrora
!
ship of the lender Of tie Ohio Democracy.
It Will not seem surprising. ntter all, Tint this
| lender sDtid have falCd to mention ns The real
charartertttcs of the misunderstanding =, htcsn;
], that, as to the regular Bcryfces which bnilks
reuder to tte business community. tue National
banks, on tic Whole. are tl,e hest and eAfest
banks VIC ever had; and. 2, tint the SatIonas-
ba'Ik currency is tie best a1ns safcst bank cur
rcncv this country has ever seen.
While. as stated, II Ia The natural Intcrcst of
| banks Tint their cIat0ucr6, creditors Us wcfl M
debtors, be In solvent hs,i prosperous coudl-
tio, 10 It s the natural interest OF The c,lstou,-
trs III hank, In 5aet, ot the wfluIe bnsinees COIN
inuntts, that the bunks be conducted on the
sonndest prlnctplcs, SO oa to give to those WHO
deal With them ale greatest guarantees Of &c.
curity amd reliability. Without suffer banll,
businc6s exchanges arc made, thcre IL nj safer
business. Aud now / assert tia, never In the
history Of this country havo We had banking
system which, IN every retpect, deserved md
muntty as the National bauks deserve aud en-.
1oy 1t. Let them be. judged by
1e.nssoo 'fss o. ths snei s first
ten we hare roue through great civil
wnr, with n'l It's rlrlssitudcs; NC haze conc
through per!o1 OF headlupg speculation md
rccklessiess In the contraction Of debts; We
have gone thrnugh q terrible financial collapse,
with widespread bankruptcy and geuera btki-
ness depression. During all thai t!nle until
the 1T Of July. last year, all tht Losses suffered
by all the creditors OF all the National banks III
1l'c country amounted ~ only s0,4154a, ami
these losses arc constantly reduced by thr diyt-
| tends paid III lie winding 10 proects. No bank
Ing systeln In the history Of this country, nor
anywhere in any country, can show such rec
ord Tor safety under such circumstances. TIE
one future OF the City of Glasgow Bank IT,
Scotland last year inflicted upon IT'S creditors 4
loss Of $2|Go0,0 0,000,-n loss four times IA great
as the agarcEatc losses suffered from nll our
National bnuks during the sixteen years ui the
existence Of the systcm. III this country the
losses Inflicted upon thrir creditors bY Flute anil
savings banks III the yenr 1873 alone were lnsgcr
urcs since lsGo. The losses from live State
banks III the ono City ot Chicago during two
| years preceding 1878 amounted to more than
enc.half OF all the losses from nll the National
California, un from Oregnnto Trxas. repeat.
no banking system Of similar extent In tt' his
tory Of my country has Is brilliant record Us
this.
To what is 70 extraordinary result duel To
tllr wise regulations u law under wIllciI The
Satlona! hanks are organized, a,lti 10 lir strict
supervision by il'e Government to which tI,t'
law subjects them IN ttlt conduct Of their buai-
scss. will not eaT that tile provisions Of the
law are urrlrrt, nI,1 might int he improved.
But 1n say tint they hare proved wonderfully
effective: t!:is they arc noye lesfcct tlluD any
thH. wu hare haa TO iMr. or anyth!ng We ase
llkely u have SHOULD thr Natioai hanking kys.
Ten tc abolished. There IL n sy6teuaS6s last
under which t!4t possibility ot
SHAM nASKtSG IL nEuCcEp TO A M!:;lMUM.
Que of the Grcntrst abuses Of former banking
sysun1s. tir organization of hauks Of ucnostt
without sufficient bonu-fde capital, is pre-.
vented by tht provisions OF the NatIonat-3'snk
net, that the capital stock OF Natioua! banks
must be fu!ls tnH ln, nt!t rcst0rcu to ftS full
yuluc after impairment, In future Of whtcl, a
Receiver is nnpntnttd BY tllr Col'ptrnller: And
hence lhe strtki; fact that n our National banks
the existing rat!o OF capital Il liabilities is
Heas1y ious times, anl that OF combined capita!
ad reserve 70 liabilities more than three tiinrst
greater tllan IN thr 1,el0 hanks III EnglaNi snti
Wales. This Is not ni. Every operation Of TIL.
bnnisa. AMI every chus!Ec IN their condition, Is
by the Inv sO vigorously subjected tn The sertltl.
ny Of TIL: Government a1a so freely czpuse1
to tile public eye, tllut such collapse rs that o!
the City Ut Glasgow nank Is SIMPLY impossible,
an.l tl1at tho drroeitoss chnliot be robbed even
on n smaller sra!c. except ~ sudden amt incai'
cnfabie Incident. ns by very boll uni ingenious
crimfnality, amounting to downright forgery
or theft. Int It ii unnecessary further to Ills.
eusa thu law; shc seycrcst test OF cxucrlcuce
has demonstrated IT'S efficiency. AnG now :
banking system 70 tato and satisfactory. uc
surviving and enjoying In 50 HIGH degree tl.e
general confidence, 50 crnlnentlY beneficial to
thu business community. 1no ot the IHninstays
| Of h1tr rcyYinE prosperity, W. nyc tUlu by the
Ohio Democracy must DO abolished. For what
else will compliance With slrIr denland for tit
substitution uf gtecnoacks fO. National babt
currency result int Consider Its consequences
Do YOU tAin. the National bapkcrs nrc In low
With the Erycro restrictions mud regulations TIL
law Imposes upon tlrlnl Do yun think tl,tt
arc tond vi having tiovcrumcut officer rlosels
watch all their proceedings. put his uuger tntt
lheM whenever anything alJpenfs oHt u time
nnu expose all their Iolhgs to lEe light nt pub
lIcItyl BY M means. Business uGn arc aln ~.
npt 10 he ln,patient of restraint unl inserfer
eicc. What, thrill, makes them submit 10 tim
supervision which IN many RESPECTS may became
10 ihe.n nnuoyairci great part 1t is tic prof
II they mako OH ttrir rnote-circuln.iors. Aud Whu
Is the rro!ltf II Is mt bv far as large rs til.
enemies Of the National hanks represent It Il
be. 1t Is nut tho full interest vi. tllH whols
amount OF their note-csrculntlo,l in addition Il
the ercst they tlrnw un tlIc hands they hav,
to drpot!t us security for their note; for
US tho Comptroller OF Tho Cusrency ha!
shown By official figures time an
agan counting tue tax they pay, tile reserves
tlry huyo tn keep. nntl 50 ui,, they rnkc lest
than 2 per cent protit annually upon their Mast
circulation, l'usrl upoIl per cent bonds. THAI
II certaflv nut extravaglnt, but 1t ID something
1'ake even that source Ut hcnG!lt away, asl.
most, II not alt, Of tIlr Nullulla bahlis Wo,lIt
l'nsten to relieve themselves of II Gosrrlltncn
control, 81 severe tu ltil, but SO wtluleaunle II
the general Interest. Amt then thc best 1}uEK
tIy bvstcm this country ever hud, giving 10 tllt
1tkA1t f<ttz@