River Falls journal. [volume] (River Falls, Pierce County, Wis.) 1872-2019, 1879-10-02

Ii is of the hanks under this system so
owned and so constituted Gen. Ewing says
that they are apt TO get together and agree
in grand and dark conspiracy upon "hid-
den and concerted measures to rob and
break down their business customers for
their own benefit. And how are they going
to do it? That is very simple. Ii is not by
issuingm currency, for, as Gen. Ewing
tells us, "when the currency is increased,
values fise;" and he tells Us also that the
wealth of the national banks is dimin
ished by every rise of prices" But 1t IL by
contracting their currency that the national
bankers are to get enormously rich; for, az
Gen. Ewing teaches us, when the volume
Of the currency diminishes, prices oonse
auently fall" and also that the
wealth of the national banks is Gin.
creased by every fall OF prices" From
this It appears, then, according TO
Cen. Ewing, that the national banks
and their stockholders will necessarily
conspire for elimination of the currency,
for thereby they will enormously incr sase
their wealth. This, with due respect be it
said, is one of the richest gems of nonsense
have seen for long time. So far II has
been one of the leudest Democratic cries
against the national banks that they were
deriving large profits from their circulation
by getting interest on it and also on the
bonds on which the circulation is founded.
1t would be manifestIy for the benefit of the
national banks, therefore, to issue as much
circulation as possible so as TO get as much
as possible of that increased interest But
here Gen. Ewing steps in and says: By no
means! The national banks represent the
holders of public and private Indebtedness
whose wealth is increased by every fall Of
prices, and diminished by every
rise," and inasmuch, as he also
states, q fall of prices, so beneficial
to the national banks, is brought about by
diminution of the currency, the national
banks will increase their wealth, not by
issuing more currency, but by issuing less !;
or, better still, 10y speedily withdrawing all
their currency which is already out.
wonder whether it has never occurred to
Gen. Ewing, who must have p0ndered
deeply on this subject, that, if his view OF
the national banks be correct, their conspir-
acy to increase their wealth by fall OF
prices would have best succeeded, and they
would have made the most money, BY not
issuing any currency at all How in the
world did ii come to pass that the 1928, 69l,-
697 of national bank currency, an increase
of over 81 100000 since last January, ever
saw the light Of day if the bankers would
make money by keeping the currency, and
thereby prices, gs low as possible? What
consummate fools these national banks
must be
But" Gen. Ewing may tell us, there is
u u6SD anu QuFk pIOt at DOttUui VI bliSs
They only act the fools to put us of our
guard. First they run out the currency to
make us all feel lively, and then, suddenly,
they withdraw it all and thus they will
catch us when we least expect it, break us
all down and make themselves enormously
rich" That seems to be Gen. Ewing's
meaning when he speaks of the Injury
without limit" which the national banks
may infiict upon the people, and of Z" the
wealth they may themselves accumulate by
hidden and concerted measures of expsn
sion and contraction of values" All, what
a profound and wonderful conception the
leader of the Ohio Democracy has of the
relation of banks to the business commun-
ity! Look at it single moment.
THE BUSINESS OF NATIONAL BANKS.
The circulation of bank notes is not the
only nor the principal business OF those
banks. Their main and regular business
consists, as l have stated, in taking and
holding money ON deposit, in using such
deposits together with their own capital, in
making loans to business men, in discount
ing notes and bills, in buying and selling
exchange, and go on. The more extensive
and safe this kind of business is, the greater
will be the prosperity of the banks; and
this business will be the more extensive
and safe the more active and prosperous the
business of the community is with which
the banks deal. A bank stands to the bust
ness community in the relation at the same
time of debtor and a creditor. 1t is a
debtor to its depositor and creditor to those
whose notes and bills it holds. When the
depositors of bank become embarrassed,
they will withdraw their deposits, and
thereby diminish the funds with which the
bank operates. When the debtors of a
bank are ruined, they cannot pay their
| debts, and the bank holding their discount
ed papers is one of the first creditors to
suffer loss. 1t is, therefore, the manifest
interest of bank that its Gus
toners, both deb.o-s and creditors,
be in as solvent and prosperous
condition as possible. As everybody knows,
| in times of prosperous business the banks
make money, and in times of business de-
preston banks are heavy losers, and are apt
to fall unless conducted on the soundest
principles. During our late business crisis
! the average earnings of national banks to
capital and surplus went down from nearly
, IL per cent. to less than Az per cent. The
aggregate losses of the national banks dur.
ing the three years ending in 1878 amounted
: to S64, 119,415. And now comes Gen. Ewing
and tells us that the national banks, over
1000 in number, scattered all over the land,
with capital furnished by 10000 stock.
holders, majority of whom are persons of
limited means, will be so insane AS to think
that they can increase their wealth by ruin.
ing the business community, and that they
will conspire to that end Surely, no man
who has the faintest conception of the nat
ural relation of banks to the business in
terests OF the country would for a moment
entertain, much less express, so utterly wild
and preposterous an idea. But such is the
financial craftsmanship of the leader of the
| Ohio Democracy.
REAL VIRTUES IGNORED.
, 1t will not seem surprising, after ell, that
this leader should have failed to mention as
the real characteristics of the national bank
ing system: 1) that, as to the regular
services which banks render to the business
community, the national banks, on the