Savannah morning news. [volume] (Savannah) 1868-1887, 1886-08-12

thoughtfully provides that any person Sc
curing loan on worthless security shall
pay double the amount borrowed and suf-
Ter Imprisonment for twenty years, and
also be disfranchised. We must grant
what this body in its preamble
claims, that ii is composed mostly of
citizens of The United States and members
OF the la6Oring class of society and deeply
interested in the general welfare. But
one may we'll hesitate whether to laugh at
the grotesque ideas brought forward in
these remarkable utterances from which
nave made briet extract, or ponder in
sad silence on that condition of intelli-
gence which could seriously adopt such
complete parody on the teachings OF eco
nomic science.
THE FINANCIAL SITUATION.
Among the papers read was long and
carefully prepared one upon "The Bank
ing and Financial Situation as Seen from
the Point of View of the Comptroller OF
the Currency" which it is impossible to
do justice to within the limits of tele-
graphic item. The following are its con-
Guiding paragraphs:
The simple facts show beyond con-
tradiction and with clearness adapted
to the commonest understanding that the
real and substantial interest of these
banks (natiOnal banks) are identified
rather with the interests of their deposi-
tors and their borrowers than with the
interests of any particular class among
their widely distributed stockhold-
ers. This identity of interest between
banks and their customers place them
under the very strongest lnducement to
seek the favor OF the public. No bank
can prosper that disregards the broad
and general interests of the community
In which 1t is located; no directors are
true to their trusts who fail to remember
that the highest interest of their stock
holders is inseparable from security to
their depositors, and prudent distribution
Of bank accommodation among as large
number as possible of business people
in their locality.
BIRTH OF THE SYSTEM.
"The national bank system was in it's
origin product of necessity on the part
OF the government at a moment OF great
financial strain to bring to its aid the ac-
cumulated capital of the country. Neces-
sarily the stress of the government ena-
bled the banks to exact the concession of
great privileges, and for many years the
national banks were really highly fa-
vOred class of institutions, but since the
limitation upon bank circulation was re-
moved, it has been practically free
banking system under the supervision
anu SOiIAOA VI ohO anu II Jul
that time these banks have steadily
grown in number and in strength, and are
to-day so Intimately mingled with all the
industrial interests of the country that
they are more essential to the conduct of
business and to the maintenance of pros
perity than any other class OF institutions,
except, perhaps, the railroads. 1t is quite
certain that the destruction of our ma
tonal banks would be a calamity second
only in degree to the annihilation of our
railroads.
I'm conclusion, gentlemen, allow
me to commend to your intelli-
gent consideration two questions which
appear to be very important, not
only to the banks but to the public First,
How can banks be released from the OBJ.
legation TO invest portion of their capi-
tai in United States bonds. and yet retain
the power TO issue thoroughly secured
circulation? Second, How can the Ma
tional Bank circulation be made what it
ought to bean elastic element in our
national currencyP