New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1882-01-17
NOM BANKS SERDE THE PUBLIC.

HOF BANKS SERPE THE PUBIC.
The hostility of many Western and Southern
politicians to the National banks appears
most incomprehensibe thing to those VINO
have practical knowledge of monetary affairs.
II is true. the money-lender has been an obs
iect OF ignorant prejudice in all lands. B!it III
This case there is something more than the
usnal hostility of the spendthrift debtor for
the "Shylock" who wants his money. 1t is
true, ALSO that the growth OF Commulsuc
shirt at the West and South, of late years,
accounts for something. But it does not ac-
count for the ignorance and passion shown on
this subject by some otherwise very intelligent
men.
WHY should man get angry at his water
mines and curse the service because the sup
NV of water is not free of charge? True,
water is freely supplied by nature. But it is
not supplied just where people want it, The
natural supply remains Free if anybody wants
water he can go after it with cart or pail,
or die for it, Just as if water-works had never
been constructed. But if he wants water de-
livered in his house, and all over his house, Ill
all weathers and seasons, day and night, he
must pay in some form for service so valu-
able.
In nature, the supply of money is also free
but the man who wants it must find 1t for
himself, and overcome its natural inertia. 1t
will not deliver itself at the door of every
store or factory, free of charge Left to it
self. 1t sticks in owners pockets, because
few of them have means OF knowing
where and how it can be safely en-
ployed. Consequently, it remains scattered
in small amounts, not sufficient to serve the
needs of trade or industry. An enterprising
merchant, or farmer, or mechanic, or manufac-
turer. having an opportunity for safe and prof
liable use of $4,000 in Western or South
ern community where there are no banks, goes
about to look for the money He meets hundreds
of thrifty laborers, who have from $40 to $50
each but these small sums are of no conceivable
use to him, nor can he make himself suf-
fcientlv known to so many OF these persons as
"a gather in small amounts the $4,000 that
he needs. For one large sum he can give good
security, but he cannot mortgage prop
ertv to each of two hundred men.
The same difficulty, in a form but lit
tie modified, meets him when he finds
few persons who have boarded from 800 to
81 900 each. They do not know enough of
him or his business to understand that loan
would be entirely safe, and he cannot give
equal and adequate security to each of them.
Finally be goes to the nearest person whose
business is to lend money. and who, knowing
that he has a tremendous advantage, exacts
extravagant interest. This is precisely the
state of things which exists to this day, III
MANY parts of the West and South where
popular prejudice has prevented the establish
ment of banks.
If bank had been established under the
law. in this community, the situation would
have been very different It's organization,
deposited securities official permit to COM
mence business and published statements,
would have given notice to hundreds OF work
men and others that the requirements OF law
for the protection of the public had been
complied with. These requirements do not
suffice in all cases; hut they have given us
the safest set of banks ever established
unon earth. The small sums which had
been lying idle in hundreds of pockets and
boards. and which owners had been greatly
troubled to guard, are now deposited in the
care of the bank. which becomes responsible
for them. Persons who have still larger sums
also deposit their hundreds or thousands.
They know that though the National banks
have numbered over 1000, and have held
ON deposit for more than ten years past
from eight to thirteen hundred mil
lions constantly, the entire losses OF all
creditors, by all failures Of such banks In
twenty years, have been at this hour less than
81. 800, 900. Inasmuch as he can find nowhere
else as safe place to keep his money, even
the money lender himself intrusts to the bank
such money as he does not lend. He can lend
less and less each year, at extortionate rates,
because the bank, being restricted by law in
its charges, is steadily gathering in money
enough to supply the market. This money,
formerly lying in enforced idleness because the
large needs of industry and enterprise could
not be supplied by the small boards OF indi-
viduals, is now utilized and vitalized. 1t
builds factories, opens mines, stocks FARMS
pays thousands Of worknen. and accelerates