The midland journal. (Rising Sun, Md.) 1885-1947, 1892-04-01

by the enhanced value which purchased
Legislation has given to their holdings.
| It is often asserted by some super
fetal person that our National Banking
sytem is the finest in the world. And
SO it is-for the Bankers. Who has
not heard the old stereotyped declama-
tiou of the American tuft hunter
gushing over the stability and soliditv
Of the National Banks and comparing
the safety Of the bank issue now with
the wild cat" money Of 80 years ago
The National bank note is safe, they
tell US, whereas the currency of the
state banks was SO uncertain that it
required the gift of prophecy to deter
mine its value twenty four hours ahead.
So far as the bank issue is concerned
this is true. The bank note is safe,
because the National Government
makes it safe. The Government could
/ just well make its own paper money
safe, without giving the banks the tire
/ mendous advantages they possess.
While the possessor Of National Bank
notes has safe money the depositor who
places his faith n National Banks is
not safe. Oh, but the Nation throws
safe guards around National Banks,
you say. Does it? How !? Name one
Of those safe guards. if you please. You
answer, the Bank Examiner who drops
in every month or SO without notice
and examines the affairs of the bank !;
the certainty that hc will come and the
uncertainty when he will come compel
the bank officers to keep their affairs
always ready for his coming.
Yes, they are ready! A smart
rogue can always make his books show
well. That great patron saint Of all
the modern usurers caused poor Anto-
Mo to say, 20, what goodly outside
falsehood hath" And so the goodly
Ioutside Of the inside ialsehood of the
National Bank is sufficiently pleasing
to the Examiner to cause that we'll.
salarisd, highly ornamental and utterly
useless official to find everything in
good condition. He goes on his way,
in few days the bank closes its doors,
assures its depositors that they will be
paid in full, they wait and finally get
nothing.
Is this over drawn? Not at all. Tt
is an experience which has come to the
people to greater or less degree in
every section OF the country. But how
are the Bank Examiners deceived. you
may ask. The writer knows something
Of the operation of National banks
some Of them-and will give his read
ers ono little peep behind the counter.
Let US suppose Mr.. A has ':struck a
lead" in some enterprise and become
rich. Being rich he yearns for aristo-
cratic associations. He looks upon
banking as an "open sesame" to unlock
the door and admit him to the charmed
circle Of American royalty. The law
requires five persons to organize. Mr..
A has plenty Of capital, but big as he
thinks himself. he is still only one per-
son under the law. So, while really
taking all the stock himself. he borrows
the names of his four friends, B, G, D
and E to use in organizing his bank.
He buys his bonds, sends them to
Washington, receives his charter, elects
| himself President and his friends Di-
rectors (impecunious putty men who
will do his bidding, finds . Cashier
who is willing to run the bank just as
the President desires, gets.currency for
his bonds from the Government, and
s ready for business and the applause
Of his neighbors. Like Malcolm, bis
great possessions serve as sauce to
make him hunger more, aud he deter
mines to carry on that enterprise whose
lucky turns made him rich. But how?
He must have money for it and will
borrow. Where : At the bank. All,
but an obstacle confronts him. The
law says National Bank shall not loan
to any individual. company or corpora
ton sum larger than one-tenth of the
capital stock of the bank. What OF
that He is poor Napoleon Of finance
who cannot, in these modern times over
come little thing like the law. So
the President himself borrows sum
equaling one tenth Of the capital stock
and gives his note. His wife borrows
for him one tenth and gives her note
His son borrows for him one tenth and
gives his note. His daughter borrows
for him one.teuth and gives her note.
His friend borrows for him one tenth
g nd cfvaa his note And thus 10 HE