Daily globe. [volume] (St. Paul, Minn.) 1878-1884, 1879-10-26
Old-Tilne Banking.

Fs, Old-Time Banking.
Some funny stories are told Of business
methods in the olden time, one of which
will bear repeating as an illustration Of
the advantages silver dollars possess as
bank reserve.
The old Farmers & Mechanics Bank
was established in Detroit in 1889. In
1915, owing to some disastrous operations
In OHIO, it was temporarily badly Grip
pied, and to tide over the crisis the direc-
tors lent their best energies. The bank had
a large volume OF notes outstanding, all
redeemable in coin on presentation, and it
was apprehended that the moment the
condition of tho institution|becam known
run would ensue which would compel
the closing Of their doors. Now-a-days a
bank officer would throw up the sponge
under such circumstances, and suspend
payment like little man, but then bank
ers were both bold and fertile of expedi-
ent. The coin run down very low, and
there was no time to he lost. The ser
vices of a friend of the institution were
secured, and he was privately sent to
creditor (Lyell, the subsequently default
ing banker, by the way, to whom the
Critical state of the bank was whispered,
and the wisdom of some measures for
selt-protection suggested. Lyell snapped
at the bait, and upon hint from the
otticious visitor, rushed to the nearest
court and got an injunction forbidding
the bank to pay out any more coin pend
ing the order of the court. This effect
ually saved the concern, for when note
holders subsequently presented the banks
paper for redemption, they were polite
ly met with the reply, "We should be
very happy to oblige you, Sir, but unfor-
tunately we are for few days tied up
by process of the Wayne Circuit Court.
We hope the injunction will soon be dis
solved when, ETC." -... .....
It was late in the afternoon when the
Injunction was served, and the stock of
coin had some hours previously divided to
1858. The Cashier meantime was on net
ties. If that injunction did not come
quickly the concern was ruined. At
every opening of the door the poor man
trembled in his shoes, lest the newcomer
should be note holder in quest of coin.
One more demand would close the con-
Germ forever. Slowly the clock licked off
the minutes, full thirty of which must vet
elapse before the hour of closing. Would
that injunction never come! At last the
door opened, and nervous, bustling man
hurried to the counter. The Cashier saw
at glance that it was all up with him,
but while there was little hope he
thought. -.. -... -.
"Here, Mr.. Cashier, I've got $500 Of
your notes want coin for"
The cashier endeavored to preserve a
placid exterior while he deliberately be-
thought himself how he might DELAY q
refusal of payment for little while, I'M
til, perchance, an officer would come in
with the hoped-for injunction.
$50 you want coin for your bills, do
you2" suavely remarked the cashier,
glancing with the corner of his eve
through the open window into the all too
quiet street.
"Why, yes! I live in Dexter, and
want to catch the four o'clock train; so
hurry up the SPECIE"
Gall right! What's the news in Dexter2
How do the crops look? How's nv old
triend--? is he living there still2
And by the way, what in the world can
you do with specie in that little country
town that Farmers & Mechanics bills
won't accomplish"
20! never mind. Give me my money
so that can catch the train. The fact
IS, there is little furry up there about
the safety ofyour bank, and I want to
make sure of my money"
cha! Ha! Hal" laughed the Cashier
"afraid of our bank, are they? Well,
they must be getting pretty fastidious
when the conservative old Farmers and
Mechanics won't suit them. Why, nv
dear sir--"
"Never mind about the pedigree of
your bank, but give me my money or l
shall miss the train"
"Certainly, my dear SIR" (Another
glance through the window, but still no
Sheriff in "ight.) ASIDE: ''What shall I
dop
"There, I've got only ten minutes to
catch my train. If you will assure me
upon homer that it is all right, and that
the bank is not going to bust, I won't
wait now, but if you are going to shut
up want my money. Come, how is it,
old fellow?'' -. 1853. .:...4.
"Really, sir" replied the polite Cashier,
you place me in a very delicate position,
II tell you the bank is safe, and any
thing happens hereafter, you will blame
me; on the other hand, if 1 tell you it is
shaky I shall be justly discharged. /
prefer not to make any statement, but
simply count out your 1000 half dollars. .
(Half dollars were the principal coinage
In circulation at that timc.) - =
Turning screw-driver IN hand, to a
strong wooden box, apparently tightly
screwed together, such as silver coin was
usually packed in in those days, but
which the Cashier knew very we'll to be
absolutely empty, he wiped off his brow
and set himself to work as if to an hercu-
lean task. ,...... > .......
The man glanced at the clock, then at
the iron bound coin-box, then mentally
calculated the weight of a thousand half.
dollars, then burst out with: sNever
mind; I see you have got the coin, and
III be darned if I'm going to pack a
thousand half dollars all the way to Dex-
ter tonight. Never mind, Mr.. Cashier,
won't trouble you,"-and oat of the
bank he darted. s.-...
The injunction was served soon after
and the danger passed. But the old
Farmers and Mechanics still kept up
the habit Of being short of coin, and did
so till the last, when nearly twenty years
latter what was left of it was consolidated
with private bank, and became the now
prosperous American National Bank of
Detroit. The worthy Cashier still lives
in Detroit, and finds bonanza of enjov-