New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-10-05

1ocent. 5.cent and 1cent pieces. This sort OF re-
demptIon was regarded as highly unsatisfactory Dy
Borup d Oales, who promptly entered p'o'e'',
and a lawsuit was the result. such were some OF
IN. .moniti4 incident to the system of banking to
which the Democratic party invites the people oi
the United States TO return.
PREMIUM TO COUNrERFElTERS
The State bank Issues offered a high premium to
the councrfeitcr and the forGer. In 1872 acc"ru'
ING In Tho statement OF one Of the best AUTHORITIES
I'm the United states, the editor OF "Ihompsoh'
Bank Note Reporter and Counterfeit Dctec'of' .hcre
were no fewer than 1000 different spurious anu
counterfeit issues Of notes OF state banks III cl'o"H
ton That must have been nearly. II not quite o''
boif as many rs all OF the genuine emissions OF sch
notes In the Fourth quarterly edition Oh
uodges's New Bank Note safeguard published In
Is5s descriptions are given OF $3.50 genuine notes Oh
different denominations issued by banks III uhc
United States This work purportcd 10 coh'iuh uo
scrIption OF every genuine note issued down ~ '''
time In the preface Mr. llougcs shu' NV
wears OF toll and great difficulty, this WORK mas 1t
last been completed, and we may saiey nsser' '"
no work has ever been published In any mhe"ise =,
I'm any country Of greater utility for commerc"h
nurnoses II Is OF interest and importance to every
indivdnoI OF every age, condition or seX VINO hah'
dles a dollar OF the miscellaneous ana precarious
paper currency Of our country Juue'ns w ."'
descriptions OF the genuine notes. huho''u' VI '"'
designs were 50 bad that even with the heip VI '"'
Safeguard" only expert couid disu"su'S" '"e
genuine from the counterfeit notes. Hs 'eore'"''
Foster said recently " Each bank had It's own
,lo,os engraved in a high or low style VI art. nc
cordng IN the means or caprice OF the bank oIichis
The opportrnitcs Of the counterielter were e"'H''
In recent conversation with lripuhc .o'''
pondcnt nm official OF the secret service ui'sioh Vi
the Treasury Department SAID "broch""N' ""'
f. generally STYLED the king OF Counterie'erS' ohce
told me that In the old days he never pri''fN '''
,ssue Of notes for State bank that be did not PRINT
49, a., or n bigger one for himself. These notes
gore of course printed from the genuine plates,
ond only the signatures OF the bank officers were
spurious, such spurious notes circulatei on cqun
terms with the genuine until they were Prese"'eu
at the banks for redemption. More banks thhh one
renudated entire issues OF their notes OF certain de
nominations on that ground
CONTEMPLATING Az ESTABLISHED INDUSTRY
Counterfeiting seems 10 have become an es'"o
lished and thriving American Industry III "iho"p
sons Reporter Of May 81. 1859. appeared THIS cneer
full waning: The various coulterleluUs o''"o""
m,nts OF the United States have obtained possessi III
of a very large amount OF genuine bills Of broken
ard worthless banks which they are m'er'hs "
erasns the real names and inserting those OF solvent
ho,bsp A. the notes of some 500 broken ana
worthless hanks were at that time extant, this WAS
an easy ard profitable form Of fraud upon the pupi TO-
In its weekly issue of July 80, 1850, thompson =
Bank Note Reporter and Counterfeit De'ec'or 10
scribed 10 less than fifteen new counterfeit DAM
notes which had appeared or been Drought 10 ITO
attention during the preceding week. An eAu"'ii'
ron Of the file Of the same periodical for the first
four months OF 1880 shows that no less than 2'2
new counterfeits Of state bank motor had appearca
snd boen described between January ! and Aprii l.
nm average OF more than two day, lncludihg Gun
DAYS The month OF January, 1859 yieldcd % :
February 81 : March So and April. "a more M"
countcrfrits OF State bank notes appeared IN any
two Of those mOnths-and they are n falr average
Of any other four months during the existence OF tie
old system-than have appeared altogether. OF VA
tonal bank notes. since the establishments Oh lhe
FIRE, National bank In 1868 despite the fact that the
average number OF State banks OF Issue was never
one-balf as large rs the average number OF NATION"
banks.
~Uow could merchant d. n successful business
with banks falling daily. with rates ~ eHchshse rs
inc and falling suddenly like the barometer In un-
certain weather. aud with new counterfeit notes "P
nearing at the rate Of more than two day. nskd
a Tribune correspondent oil secretary io''e' VI IA"
Treasury Department recently
Well replied the Secretary. "every merchant
WAS compelled 10 insure himself by charging Proh'
Of about 100 per cent On everything he son. IT,
member how my father who was merchant before
me- nonplusscd a drummer Oh one OCCASION VIM
was trying TO sell him bill ~ good. NY iH'h'T
had paid a dollar yard FOR some article which the
drummer offered 10 sell him at - cents yafd'
NV father replied TINT he would lose money b. such
q tronsnrton and the drummer asked why. why
ropca,cd nv father. 'Why, because ~ | charge
exactly 100 per cent profit on everything now
make dollar n yard on those goods ma II D. g"'
from YOU would make ONLY - cents of course
there was better reason why my father "onid not
transfer his custom 10 the drummer but about 100
nrx1
ness
GLOW did the Ohio banks stand In those daysl'
asked the CORE spondent.
HOW BANK EX>MISEIs WERE FOOLED.
"Weu some Of them were sound and others were
MT W. had the ohio State Bank with Headquarters
ot Columbus and branches scattered all over The
STATE once a wear there used to BE- an oilcial
examination OF the bank and IT. branches by a com
miltee appointed for trs purpose day or TWO DE-
fore the committee would set out from columbus
on It's tour among the branch banks. big safe con
,aining the amount Of specie required by Law To pro
feet the notes OF branch bank would be loaded
into n wagon and hauled to the first branch bank
nj which an examination 10 take place. ana
denos,,ed in the vault In due time the committee
would arrive examine the books Of the bank weigh
the specie and, OF course. find the concern pFo'dc"
with the lawful reserve. The same coin wouo tEeh
be replaced IA the safe md conveyed to The next
branch bank in advance OF the committee wDere II
would again do duty ~ lawful reserve, ana 10 Oh
until all the branches had been duly examiner. when
,he specie would De returned to the vaus OF tho
main bank al Columbus. The old safe Is there yet,
I believe. A true history Of Its jorneylng' would
be an interesting ono
do yOu recollect the rates OF discount on ono
bank notes I'm New York y
ain February, 1912, Just half century ago. nc
cording to specific basis bank note table which re-
Gently examined the notes OF all the Ohio banks except
thirteen, were quoted at II l." per cent discount
OF the thirteen six reported ~ broke TWO US
failed enc ~ closed the Does Of the two were not
quoted the notes of the Mechanic and Traders Bank
were quoted at 10 per cent discount. and those OF
the Crbana Banking Company at G5 per cent discount
In the same month Post notes Of the state vi OHIO
we're quoted Mt IL H. to IL cent discount. OF
course cannot speak OF that time from personal rcco
leciol In my own experience the rate Of exchange
ON New York OF the best ohio paper money was
about 3 per cent. About ls58fJS | think the dis