The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1881-10-13
TEE BANKING SYSTEM.


Peculiar Privileges GI saRted 10 National
Han!1ers-
While | have nothing 10 say against bank |
erS as men. some OF them being among my
warmest friends, 1 must assume the liberty
To say that the history of the world. incfId- |
ing the experience Of more than fifty Gov
ernmenJS, proves that the banking system
now in vogue in commercial nations is the
great Ura> Of Saiionai prosperity. 1t Is the
deadly enemy 90 iha peeunldry interests OF
;tii classes but the wealth. hoarding arist0c-
racy. II Is almost sufficiently prolific of
evils to ill - Pandora : Box" 1t comprises
an attempt to Anl;tSS and luOnopollZe wealth
bY deNices which are unjust and IN some re-
spects dishonora1ie and immoral itstarted
with 4 glaring. pal pable, legailZed false
hood: mathematical untrutn, teigned IN
the monstrous assumption that numerically
one can equal three, and that three dollar
debt can justly aud honestly be paid with
one dollar. The first step IN organizing
bank is 10 promise to perform mathemat-
-ie:ii impos>ibility which has become stere-
oTyped faischood. The charter requires the
institution to promise unconditionaiiy to
pay out the same dollar of gold or silver to
three different persons who may cali at the
same time in exchange with each one for
dollar OF paper. such promise being both
Il mathematical and moral imposslbllity in
YoNes q violation of moral principle, II not
a surrender OF moral manhood; and this
abandonment of moral recsitude opens the
door for the entrance Of long train of moral
and political evils which follow and spring
up aS the natural and legitimate fruits of
false premises or false aNiOnls in moral eth
les and political economy. To show the
practical operation Of this false principle,
We viii state q case: The FIRST National
Bank of New oril loans to A, B ana c,
each, at the same time one hundred dollars
OF liz own currency, for which II SOienHly
promises to exchange with each one hgn-
Gre0 dollars in gold or silver, that being the
Whole amount deposited in its treasury.
now, mark. he promises to pay 10 each one
of these customers all of that one hundred
doilars-a most glaring, stultifyin@ and self
evident mathematical impossibiIIy. The
next day \ calls for that same one hundred
dollars of specie, and i i paid over mt once
to hlm. In three days B likewise calls for
it. The cashier shrugs his shoulders, raises
his glasses, and politely informs him - the
specie is all OUT Il is astonished, morti-
lied and chagrined. He is needing 1t to
make a legal tender of debt-an emergency
! which bank notes cannot meet. lie turns
to the banker and asks: .'What does this
meanI You are bound by your charter to
redeem every dollar OF your paper when
| presented, but you falsi!y your promise in
| less than one week?''
Well. | Will tell YOU how it is,' says the
banker; "we had $500 of paper and only
| tl00 of specie, and when we promised to let
| a, D and & each have the one hundred in
| specie in exchange for their paper it was
| upon the presumption'that but one OF them
| would call for it,"
Upon what grounds did you base this
| presumption Il asks. 'Why would not
| Il and be as likely TO need it az A"' The
| banker was swamped. He confessed he
| could not tell. But he knew he had prom
| lsed to do that which he could not do, hop
| ing he would not he called upon to perform
| the act; but the promise was none the less
4 standing falsehood, the knowledge of
| which was calculated to weaken and corrupt
moral feelings. He acls Vltn aS little sense
| 9S hn hN-, intr
| upon the brink of a burning volcano, upon
| the presumption that because its SeethinG
contents are still TO-DAY no fears need he
| entertained for the future years, although
| its fiery ebuilitions are frequent The
banker suppresses his conscience and con-
| tents himself to live a perpetual lie. And
| this falsehood is an essential element OF the
| system. No bank would ever 90 into bust
ness unless 1t had more paper than specie
| that Is, more bank promises than 1t can re-
| deem. And the banks continue to prosper
as long as they can keep the practical opera
tion OF this false principle concealed from
the public-and no lOnger-that Is, as long
| As they can make the pcoDle believe the
| deem their notes when they never possessed
half that amount once during their whole
| history. As long as the people can be thus
| deceived they VIII never call for the gold
and silver, because they prefer ihe paper, il
| being much more convenient. 1hey only
| call for the specie when the paper is likely
to become worthless by the failure OF the
| credit Of the banks. As long as the banks
| are believed to be safe they NAV keep thGil
| gold and silver.
But let the suspicion get abroad that
| there are rascals in the institution, and
~ -. o9I - ii''''o ~ 'no 9p0|lH, HiiS
ri - ~ - ''a q Pl -
t,'0 Iii0ii i'l'Hc ii'''t'et " uGInS BUSINESS
to the precious J.t.i.i.-. The note holder,
ruSt i'll lor he spcc,c MI one-third of then
ai1 SupPi.t"' "n'sH s~Ahius4s ~ rLe "nol'
pHe' /" '''!u Il "i'iil @ I'"uI M ultJ othel /" o.
- nniiN9, - - ~ PioHNh', m " "
l'iseno'i 'i'' my are a''ic 10 letteein tiiGIi
PPu' 'ti'! I"t'''' 80 PIJ 81 ~ ~ " oC
. W. ' @ - IA 'tl 'ii', i'''s' Pa
| mn P"ptl "i'"'itl " i"t', 'i'u hci 1ii' lCiuS'
:" ~ ','Git ',.>'oiiiel ~ NV ' u"l'''i " ~
@ Ai't II! ''."t'se a p,'o o'it 1t iiiizh'' IN,
- - ''! -" t'i'9,it'''t 80 o'i1 ,t't, N"iitG
'w' ,I iht >iNc'', "lH' .1'I tiiey Cdhh"L ihthi9h
~ y" "', - - - - 81 So, '''
~ - "'n ,'''>o
- - ., 1t l'ii,'' - i''t,i ~
h09 = IH"2P'I't'N' '"' "ii' '''9 81 i'it'atI J
9,"Pleu' ,n".'s''tlN "l h'he'l "i.cfS .cfS art
'h'""h OH "I eIipl"5 ihSnl' suffering ant
'i ~ i,,,I ''tI ~
1,no., tn,s ,yh,lt,. Yin tg',t - t,,,. ,,t,t
ttrY' iIne 1n,,,,,.,. tn,. tool. nf trldr nv,
| Iisaunn.,rcI jI,r I,,L- jI,a 1,Ient,t ~
rurrrury mo-. kna, il .tor.1 o,,t.,5 In, IA,
milIiont buI tls,..tr, lrf il out iiist nnv
yynru If i mos llryrufIv na.Iei Tn,
nus min y5;i i,'',,,,I,,ity in orI,.,. =
.ivc tt,r,u.elyr, What Lit.d II nm in.titu,
tion i. h.1 yhj,b rains :, [-,tint, 10 S,vi. .
| ,i,., ar ~, .a,.a , g.,II,. - =, .1r,,r.,t. IA,
nt I,.,l Il hn,,.,i,,gs ~, i ~, Ifo,,,t,IoI -;
any. ,,r,,,.j,,ir~ nf i,,,ti,.,. ni. hnnnyt,s An
yni IL =, ,i,, ~ ,I'o i.t,t,,ti, - ~,
fes.a.tiv ,iyiilai .,,.c .,,I Mia, Sb.i,no po
nl.,, ',',i i;',,'
% iio az .'u g me- nlit,
oi', ~ LnI ,'CN VI ine PeHpie
nii,t.,,,.,, i, ~, ii,o,, liz " nv ~ ~
i, ,ai ny i,'. 'i'' III" Gt
tio oti' ,IS ] ','.' u'l''us Mll
",c. AS Mti' ,''N VI t"Nip 1ESi'i- q s''.Hi
% lui, ,n'o ii"t ii,'S'''' i'"' nm rh
Nl1le ~ ~o't'tc - '.pt p ''a'h'''i w. ~
- Ui I'l W ,''u ~ ~
ti"9 - 'ti ~? t -
t.S' um me oi 're oo1
~ 'it"'ai -, i'a7 ~ ,i''tty In W.
ii"Tt7 VI a'i' ,u'P tei''.s 'iio N1,tt y