The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1879-09-26
The National Banks.

One Of the most unreasonable and absurd
planks in the platform of our Greenback
friends is that denouncing the National Banks.
There was never in the world, at any time
better system of banking than that we have in
this country now. l should not be far wrong
in saying that no other country has ever had
SO good system. An Englishman or French
man might possibly take exception to this and
maintain that the system in his country is as
good. Bank of England notes are as good as
gold anywhere in Europe, but the smallest
note is of the denomination of five pounds
twenty-five dollars-and all sums smaller than
that must be in coin, which is an inconveni-
ence and sometimes serious embarrassment.
In France the notes of the Bank of France are
equal in value to gold, but they do not pass as
readily as gold in other European countries.
Our National Bank notes are equal in value
to gold all over our vast territory. and will be
accepted by brokers in England and France as
readily as English and French notes are ac-
cepted in this country The wants OF our peo-
pie in every department Of business or social
life, are perfectly met now by our National
Bank notes. They pass everywhere in any
sum, large or small, as readily as gold, and are
because they are much more convenient at the
same time that they are as safe as gold, having
the whole credit of the nation behind them.
Before the establishment of these Banks we
had only State banks, whose notes were cur
rent and at par, only in the locality where each
bank was established. Business men and trav-
ellers were exposed to serious inconvenience
and loss in those days from the frequent, al
most constant necessity of changing these notes
in their intercourse with various States. New
England notes would not pass current out OF
their own territory, and New York bank notes
and those of other States would not pass in
New England. Persons coming from New Jer-
sew Pennsylvania or other distant States into
New England must pay an exchange ON their
money OF from two to five per cent, ana IN
many cases much more. Many OF the banks
were weak and in poor credit at home, and 1t
often happened that persons unfamiliar with
the standing of banks at large, were sufferers
by taking notes OF weak or broken banks, ana
by having on hand notes of banks breaking
suddenly. These losses in the aggregate were
very large every year.
Business men in their intercourse with the
State banks were often very much embarrassed
and sometimes put to great inconvenience and
even serious loss. This was inevitable from
the system. Boston was and is the centre OF
New England business, more, formerly, than
now. New England purchases We're made
there. Consequently, the rates OF Country
Banks" as all banks out of Boston were called
flowed into that city in large quantities, tend
ing to crowd the notes of Boston Banks ont of
circulation. To prevent this the latter used to
send home in large sums the notes OF all coun-
try banks, demanding specie for them. This
operation was most embarrassing to all country
banks and to all business men out of Boston.
There was afterwards modification of this
practice by the establishment of the Suffolk
Bank plan, by which that bank in Boston un-
dertook to accept and redeem the notes Of
country banks; but these were obliged to have
each a deposit of funds to its credit i'll that
bank, making all the banks in New England,
out of Boston, tributary to the Suffolk. How
ever humiliating this was the country banks
generally submitted to it as a necessity. One
result of the system was 20 hamper and cripple
the country banks so they could not meet the
demands and satisfy the legitimate wants OF
their customers. .
Under the National Bank system all that
trouble and ditficulty-and it was very great
has vanished. The banks can accommodate
all their customers who are able to furnish sat
sfactory security; they can at any day meet
all the needs of the business of the country to
any extent, large or small, if it be legitimate.
Under the State Bank system all the banks
properly conducted were always careful ana
anxious about their circulation, so as TO De AZ
all times in condition to meet promptly al
probable demands upon them to redeem their
notes, and thus they were often compelled 10
turn away from their counters their Dest ana
most reliable customers, without help-when
they were in great need of accommodation
restricted; it was confined to very narrow
area, and they were constantly flowing back to
tie several banks for redemption. Under our
present system this never occurs. The notes
of Portland banks are as likely to be in Detroit,
Chicago San Francisco, New Orleans-any-
where else-as at home. Indeed, when once
issued they rarely return to the bank whose
name they bear .,er
The National banks stand exactly in the re-
lation of warehouse men to the public; that is,
it is by and through them that persons wanting
to borrow money are brought into contact with
money ready TO be loaned, and this is done in
the best, most convenient and cheapest way.
Men, women and children having money to
lend, put it into these banks, where persons
needing it are always sure to find it ON offering
good security for its repayment. As men go to
shoe shop or hat shop for boots and hats,
and not to the factories where they are made,
SO men wishing to borrow money, go to the
banks for it, and not to the several stockhoid-
ers. whose money it is they borrow.
These banks occupy most important place
in the business of the country. The business
of the country could not go on without themi