The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1880-01-02

place whore there 10 need OF 1t, the Sa'iohai
svstsm gives some profit on the circulation
that employed fer local vsnts. fet TINS sys-
tenn. strange TO say; the very men who com
nl.u Of Lace OF currency wish to break down.
Strange to ssy, the very men who think tnere
il not currency enough are those who object
most loudly to the profits which invite men OF
means to put out more currency.
1t IL pretended that "the banks" having a
common interest, will net together to contract
the currency, and thus increase thar profits
by every fall in prices.' II this is so, why do
thew put out any notes at al? Small crops OF
wheat cause high prices, and high prices OF
wheat help the farmer. Therefore will not
that Gigantic monopoly he farming interest,
burn al the wheat or feed it to the hogs, in
order to put up the price? Small crops and
high prices do not help any farmer unless he
has crop to sell. We may DO sure that he
will not destroy his own grain in order 20 make
grain more scarce and help others to get high
prices. SO with banks; it helps them to have
money scarce only when they have plenty to
bank would make money scarce, but not ole
will deprive itself OF money to lend in order
that others may make larger profits. Any con-
traction, too, which causes disaster, hurts tie
banks by breaking their customers. some fail,
owing the banks, and cannot pay what they
owe. The National banks have lost S64, AIS
in bad debts charged of within the last three
years. Other customers lose money, so that
they have lees to deposit, and consequently
the banks get less TO lend. Bad times for the
country are bad for the banks. In 1870 the
National banks gained IL per cent on their
whole capital invested; in 1878, less than hall
as much, 5 1410Oths per cent. To say that the
banks will bring disaster upon others in order
TO help themselves is sheer nonsense. What
workman, in order to better his condition, will
set on fire the factory which pays him wages
1t is said that the National banks form "a
powerful and dangerous monopoly" Nothing
can be more absurd. These banks are not one
in interest, as has been shown. Find fifty
National bankers are Of all parties, and OF all
shades OF opinion as to finance, and il never
has been found possible to get tenth Of them
to act together. There are 100000 stockholders
In National banks, but more than half OF them
own 81 900 or less OF the stock each, and war
upon them as a class is largely war upon
only as farming is. A man who cannot get
land cannot be a farmer, and a man who can
not get money has no right to be 3 banker.
But the real objection to the system is that it
prevents men who have no money from issuing
swindling notes as bankers. Have the people
forgotten how they were robbed in old times
by wild cat banks? The National system is
80 guarded that it ia safe for the people. For
that reason it is hated by the men who want to
.swindle the country once more by starting
banks without money, and putting out WORTH
less notes without restraint.
Any set OF men can start a National bank
who will do it honestly and have the m cans to
do it safely. But the restraints OF the law are
meat to protect the people, and the system
we have is the safest in the world. The bank
ers are obliged to pay in and hold three times
as much capital, in proportion 10 liabilities, az
the 1915 banks OF England and Wales pat up
to protect their creditors. Sworn returns and
strict inspections are required here; the lack
poses the people to greater danger. During
sixteen years all the Losses to oil the creditors
OF National banks amount to only 96,il5,423
But single bank in Great Britain recently
failed with loss to creditors Of 10000 0o0
The old State banks, as all know, sed to Fail
by the score, involving rich and poor in heavy
Losses. In one year, 1871, banks having a
capital OF S67,036, 265-more than one-fifth OF
the entire banking capital in the country at
that time-faied with q circulation OF 823,577,-
752, and in nearly every instance the whole
capital was lost In almost any year OF dis
aster, it safe to say, the loss to creditors OF
the old State banks was greater than the loss
to the creditors OF oil National banks in SIX
teen years. l. costa something 70 make the
system 90 safe. Policemen and fire. engines.
for the protection OF life and property, cost
something also. But it would be much more
sensible to abolish them than to permit knaves
to start banks and issue notes without restraint.
None deny that the banking system has saved
the people many millions by It's safety. Norc,
deny that perfectly safe and uniform cur
rency, OF the same value In every part of the
land, is OF very great benefit. But those who
assail this system, in order to revive the State
banks, have no idea what that change would
cost. 1t has been shown in Article ". that
the tax paid, In the rate OF exchange between
the West and South and the East, in the ysers
before the war, was not less than or l u per
cent on the whole vane Of goods transferred
and payments made. II that value il only
"a 900 900 900, the cost of returning to the old
system would now be from $40,00O000 to &c.,
100000 yearly. But it is generally believed
that the amount OF exchange drawn each year
is already over $4,000 100000, and it is rapidly