The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1881-07-01

w UeH OgtitI HdbfOlul DdlfhS WtIt
organized with large capital, the old
State banks gave up the fight, and,
after ccasing their hostility to the
national banking system, organized
as national banks, and from that
time the new system was a grand
success.
In order to correctly measure the
power early acquired by the nation
al banks OF this city, and estimate
Alright the financial strength Of
Wall street, it is necessary to glance
somewhat at the causes contribu
ting thereto. Probably no other
one thing has done 50 much to aug
ment the volume Of money controll-
ed by Wall street as the National
Banking Act. The national banks
arc organized in every State in the
Union, except Mississippi, and every
Territory except Arizona; the total
number in operation being 2094,
the greatest number that has been
in operation ut one time The banks
in the leading cities are required to
keep % per cent. of their deposits
as reserve fund, and banks else
where - per cent. of the aggregate
amount Of their deposits as reserve,
a portion of which. u per cent,
can be kept in certain cities designa-
ted in the act. The banks in cities
other than New York, when the
act first become Il law, were per-
mitted to keep one-half Of their
lawful money reserve in cash de-
posts in the city Of New York.
| This gave control Of vast sums to
lthc New York banks The Com
potroller's report for 1880 states
that S100,000000 Of the funds oi
other banks are constantly on de
posit in New York subject to de
mand. This in itself il tremen-
dous power, and when the national
system was first started it gave the
pioneer associations an immense adj
vantage over the old institutions
On the 18th day Of March the total
resources Of the 2094 national banks
amounted TO g., ,I4Q,1I0,945. TheiI
capital stock pail in was at that
date $45S, ,254, ,935; they held sur
plus fund of Sl22.470997; undivid
ed profits, S54,072 ,225; due To de
positors, s944.6I4,9ll; due to other
banks and private bankers. 1858.
256, 1913; circulation, outstanding
S29S. .S3S, $50 other liabilities
amounting to IS, S,G04,524 IL is diff.
cult TO comprehend such vast sums
and large as are the resources of tb'
national banks they form only /
fractional part Of the total resource
J from which Wall street draw
it, power.
; With the advantage accorded tn
New York national banks by th
new act, the First National, bein
the pioneer, made large sums G
money and continued under tb
control of the Thompsons until lS7
when it passed 10 the control of th
parties known rs the Jay Cook
fraternity. At that date Joh
Thompson felt that he was grow
ing old and that stupendous transac
!, tions in Government bonds wer
hazardous; in fact, be looked upol
them as partaking largely of til
nature of gambling. and beside
which the wear and tear incident {
large operations was too much strai
for a man OF his age, and wit
o enough OF this worlds goods, he wa
glad 20 transfer the power Sal
q he to the writer: when tn
= temptation was presented of takin
the Government loans, the situa
ton resolved itself into this: II tn
a operation proved a success the ban
could pay a dividend Of 100 pc
cent. in six months. III il turne
out disastrous, the head Of the ban
was liable to be inflicted by tn
g Grand Jury Why, in my day,
have seen u. S. skies sold at 81
and there were fours, just as liabl
u to shrink three or four per cent
. und that meant ruin to the bank o
: the immense sums subscribed 70
g The management assumed thf
Q risk, and as the business of th
3 country went booming the Fir;
8 National Bank made great de,
u of money. However, the Lord di
u more for this country than job
l. Sherman, by giving big crops. an
: so the loan proved a success; but 5
y far as the bank was concerned,
J, was pure gamble" From 1877 I
Is 1881 the First National paid 81
D. per cent IN dividends, there bein
+ one of 100 per cent, one of 30 pc
u cnt.. and three of 20 per cent
II American Grocer"
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