The weekly Thibodaux sentinel and journal of the 8th Senatorial District. [volume] (Thibodaux, Lna. [i.e. La.]) 1875-1898, 1885-02-07
A Financial Article.

Banks, as they are allowed to run, in
tnany parts of the country, are not
much safer than a stocking leg to put
money in, and the Government can not
take action to make them safe minute
too soon, and while about it make all
banks safe, whether national or other
wise. The national banks are COM
PEELED to make their circulation good
by depositing Government bonds, but
they may have million dollars on de-
post and have the Cashier steal it, and
the depositors can whistle for their
money. What the country wants is
banks where money h safe, and where
it can be got when the owner wants it.
The way it is now parties who are sup
posed to be good, st rt bank, with
$4,000 CAPITAL. Five good men sub
scribe $4,000 apiece, and the bank
opens for business. Nobody knows
whether the $4,000 capital is paid in,
or if it is it may be taken out the same
day by the stockholders. Depositors
to deposit money, and before the bank
has chance to loan dollar, thousands
of dollars have been deposited, which
they loan. If Tom wants to borrow
thousand dollars, he goes to the bank
and borrows Dicks money and pays to
the bank 10 per cent. interest. What
does Dick get? Well, very likely Dick
gets left. The bank may be lending
Dicks money for years, and making o
fortune out of Dick just by the hand
ling of his money. If he let's it re-
main three months, he may get 3 per
cent. interest on it. Finally, Dick
needs his money in his business, and
draws it out, and after a while he
wants to borrow thousand dollars.
Does the bank accommodate Dick? :?
You would think that after the
bank had made heap of money lending
Dicks cash, that it would be no more
than right to help Dick little. Dick
can have thousand dollars if he will
get two good indorsers. He didn't ask
any indorsers from the bank for his
money, but he gets the indorsers, and
the bank kindly lends him Toms
money, which Tom has deposited. If
Tom wants lis money, the bank pays
him with mgney that Harry has just
deposited, ind everything is lovely.
But whepNa all the boys want their
money atonce, the bank closes up and
hangs glt sign that the bank is tenn
porarily embarrassed, but will pay q
hIfndred cent, on q dollar as quick as
tie President gets back from Europe
and they find the Cashier. Depositors
Iare allowed to send an attorney into the
# bank, and he inds everything there all
right except the money. The stock Of
the bank has been hypothecated; that
is, the stockholders have placed it in
the bank and borrowed Tom and Dick'l
nNoney on 1t, and the stock is put in a.
aAets. Tom and Dick can have some
of i if they want it. but it is not worth
thu paper 1t is printed ON. The affairs
ofythe bank are wound up, the old notes
taat have been taken for the money o
Aepositors are sold for song, and de
5positors get fifteen cents on the dollar
Fand consider themselves in luck. A
+ depositor meets the President yea
after, riding in his carriage, and says
"Say, thought q national bank wa
good. I Thought you said the Govern
ment was at the back of nationa
bank" The President says: If yo,
have any of our currency that VI
issued, YOU can have it redeemed q
Washington" But the depositor neve
saw a dollar of the currency. II Con
gress passes a law that nobody can rul
. bank without putting up dollar
worth of real estate for every dolla
the bank receives in deposits, so tina
any bank is good that is allowed to d
business, there will not be so man
times in the history of the countr
when everybody is out of money, wit
plenty due, and unable to collect
cent. A banker has no more right t
do an unsafe banking business than an
other man, but the way many bank
are run the depositor is feeced wors
than he would be in faro bank.-Peck'
Sun.