New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-07-22
ILLINOIS


State Bank and branches 81 discount
Bank Of illinois 80 discount
Illinois and Michigan Canal check. IS dcoln,
INDIANA.
s$isS s'% ss e s5as'Iss
MICHIGAN.
Fs 5he s. snS Ms.6,o,c ank e dds ssS@
All other tanks in The state various rates
1t Is entirely safe TO say that OF the states at tile
period named Michigan furnished much the most com.
plete sample Of Democratic banking II consisted Of
what were known or the wildcat banks OF that
State The nature and character Of the brood
definitely set forth BY the Hon Alpheus Felch, lead
Ing Democrat Bank Commissioner. member Of the
legislature and Governor o. that State. and United
states Senator from the same. Although not state
nnul 1884 Michigan 6bounded In incorporated banks.
Most OF these were organized under what designated
As the safety Fund system" the distinctive feature
OF which was. that at the beginning Of each year
every bank should deposit with tho state Treasurer
sum equal 20 onehan Of per cent OF capital stock
paid in the fund thus created be held and used for
the ben creditors of the bank This was intended
a show of guaranty FOR the banks. similar TO
that VI the United for the present National
banks on deposit of Government bonds for security
Of circulation Thus arranged for the process OF
bank creation at became active IN the young and
sparSey settled state. This greatly stimulated
the banks to "suspend specie payment on their notes
until May ls 1898 As may well be supposed. such
invitation indefinite Issue Of paper, without posi-
bic means for testing It's value, was promptly nc
copied Schemng adventures avaIed themselves VI
the license thus given. According TO the terms oil the
law 10 per cent OF stock subscriptions was paya"o
at the time OF subscribing and 10 per cent every sA
months until all should be paid, full payment OF STOCK
thus covering q period Of four and one-laf years
spece basis Of 30 per cent Of ptal stock required
before beginning operations. This PROVISION. ho"eNei,
habually, If not wholly, evaded through 'at Hd
specie certifcates as substitutes for coin. consist
bank and those Vi other parties certifying that such
specie had been deposited with them by the BANK
tor safe keePngsuch papers often Ten, Dens sbe state
Commissioner for the examination OF the ehiDlSp
bank was provided for by borrowing com ,n Tor owner
Immediately after Inspection; me TenHDlN " o. tIa
showing OF bank responsibility Is indicated 6 6co uo
fact, officially reported, that IN one case So'ooo III
coin counted three different bank, Goasst t
lively and thus made to answer as safety nn,r .,
such basis. Tho Farmers Bank OF Cienesee was Was
started cerhca,es representing S H hank bne Of
Lapesr on 81 5000 and the Wayne County hnns %,
Detroit $4,000 Of IKE basis SO exten en-
this practice that tho loanlng OF specie ana suppys
OF specie certificates came To be regular business
and a source Of profit to operators. - ,,,, s,,te
There we're organized In one year IN u'dt ot .
forty nine banks, Of which forty went into opera'og
bens bank for each 1000 inhabitants o,,ti nE 70
s3,si 600 Or 500 per capita Of population con,
sIsIns chiefly Of pioneers Teco1y arrived for a se u.
law been obeycd the available coin reserve lor sc
curity Of creditors Of the bank would nave auu I t
10 81 IA 500 whereas the actual means OF ms s1rs
Aid moi reach per cent Of such amount These oanks
being instituted almost wholly for ne ssn" :" lot
Nth little regard for regular banking business, "
became an object with many 10 locate at inaCc's,Se
points distant from centres Of PoRu nntes anil might be-
1 @aae 'd deSl, H for Sold"rs ny
The result n This system o. ,d e h. ~ me- .ory
safety Fund" banks were In ope,Nncn tnr W ,Snn
being under injunction prohbiinS bushes G wnrth
less the falling chiefly on the people o Sn se
the banks having very nte c,sa,t oae snhseoucntIy
doc,,rd the system" % n uncGlst ltutional M
dspo,ng Of wha. ntte reliance Their wa, =, on rb ,e
, onoS her d"cIson by the authority eNemltne
bank directors from Inability for official action uho'S
i q The real ssqgast m Of BE- DfT%'S %
SAFETY rnnH Rank Commssioner Felch's report;
Thus the Farmers Genesee County banh "es sgnr"
r, NTH neither coin nor bus Of o'es banEs-no olc
notes Of receipts tockholders ana s.o @ VIC
the amount Of sG Dssds 81? and T ss 900 Of another
marty all on hv. years time Their Wa i 10 % hcy
o. n.TfS The Exchange Bank Of shawoese was VIZ
out books Of any had to show The a @r @
. II Is aSs Of '3ssF chE
for 50 600 Al this time ss2oOn o. o', .t.Ics At
eFe ,GSson County Bank found books KEEP, N
and erased. IN" h~~''H
y, hayes containing nails. glase aIo ron i' nans
y, Whlte Pigeon had beer ir such si,n lul mann,
that (, began tn" printing OF us ifp~ VI" common '
" E- the nurpose Of prosecuting Its Internal llpIva
ments chefy railroads. the state oorroTeu nd "s
30 money on bonds at heavy discount Inv mVeS -
Sn"siteS With the state Bank OF Michigan as the MI
resnons,ble OF the hnd In the State WIN inc ri'
MI whom needed a largo portion OF The money
fnund 10 have beer scattered, clneny anohg ".o5n
,ormr,cs The amount thus disposed H Wa s.1o,,
"a. o. q, this the Democratic Governor St"yvfs
Wnson, had ~ Al3 90 hs Democratic rather ,SY ca
r Masonl So 3Il 70 his private secretary co. Az
a senator Si4 O9O five Coinmi Ssiohcrs. q'o'"o, ~
RANK Cofnmis 81 .643; two directors 81 DO Wv
h.nK sl3I5O: the United Stetss Marsh 92'r-di
S~nar,ntnrd0t OF Public Instruction. r9'3a 6 n ~
states Attorney. $1,000, n Judge OF cC"N e'''' '
the banks cashier. s54OC. etc IT.. c,,o. 4, con.
~ Michigan was In advance u other states IN con-
oc1,on With the Democratic state bank system w
n distiu ctOn TO which she was emln"lty ehu' ",'
largely from the fact that us ntrodclloh anu uas
"ent there we're under the immediate SUPERVISOR VI
ho4 States most prominent citizen and poi'i'til mr.
FOR General Lewis Cas- leading mfnbT o. - -,
odnccd the poicy of state banks as substitute lor
The United States Bank subsequently Gencfai ~.
for six years represented the then Dcmocr,u1 ~
- N,chiran in The United states senate. ana wa e
nomocratir nominee for Presidtt In lr13, whon ~
feated bv General TAYLOR Henc" the specihl no
| in now accepting Mlchiran'S safety fuhn SS,.'"
"s the highest type ~ Democratic currency supply;
The convention which nominated Grover tlcv"ianu
for President practically asked the American peDP
IN decide whether not they az prepared NJ hnIo
return o, the Democratic system OF wildcat bSnh,,
New YORK Jnly g. 1892 CLARK WAGGONEK