Wood County reporter. [volume] (Grand Rapids [i.e. Wisconsin Rapids], Wis.) 1857-1923, 1892-10-27
BAD MONEY.
1t is Certain to Follow Democratic Wild
Cat Financeering.


Cat Financeering.
Business men will not fail to see that
the banking system now proposed TO
the country by the Chicago convention
would, if adopted, pro-e worse tinan-
cial aff1iction than the flooding of the
country with greenbacks, which so
large a portion Of that party recently
favored. For of graenbackS it could be
said that they would have the govern
ment back Of them, but if the old sys-
TEN Of state banks should be revived
they would become, as they did before,
a slufceWay for pouring over the coun-
try a flood Of notes without proper
security. All would not be so, but there
would be millions of unprotected or
only partially secured money in circu-
latiOn.
President Harrison, in his letter of
acceptance, wildly recalled the condi-
ton Of affairs when the Old system OF
state banks was in its baleful prime.
The acknowledgement, in Il conmuni-
cation to the last congress, presented
some startling statistics on the failure
mOmentous interest since the demo-
Gratis have announced it to be their
policy to remove all restrictions upon
the circulation of state banks. The
pOsmaster-general says:
THAT private banking institutions do
not afford adequate security to deposit
Ors is most clearly demonstrated by the
CT,
ment, showing the failure of private
banking firms and contrasting these
failures in their extent and effect with
the losses incurred through the insOl-
vency of national banks These Stats
tics are comparatively limited, but,
such as they are, they constitute such
strong proof of mismanagemcnt and
reclIessness of concerns free from ade-
quate governmental or state restraint rs
to furnish the best evidence upon the
point desired in this discussion to be
emphasized
From the beginning of the national
banking system until 1879, a period of
sixteen years, only eighty-one national
banks had become insolyent, ana the
estimated losses all told were Sc, 240,-
1S9. 1t is stated in the publications on
the subject that fifty-fve banks, Operat-
ing under systems i'll vogue prior to
the national banking system, failed in
the single year 1871, with an aggregate
capital of over 100000. And it is
also recorded that in nearly every in
stance the entire capital of the banks
which failed was lost. The losses Incl
dent to three or four failures of private
banking firms prior to 1879 were equal
TO the total losses which had up to that
time occurred under the national bank
ing system. During three years ending
January /, 1879, the failures of state
and savings banks and private banks
in twenty-three states numbered 30,
with losses amounting to $50, 616,6 61.
''The average annual losses to credit
Ors by the insolvency of national banks
during sixteen years prior to 1879 was
$390,012, while that OccasiOned by the
failure of banks other than national
was for three years prior to 1879 not
less than S1O,S72 200 per annum. The
report of the comptroller of the cur
rency for 1879 show that in the states
of Ohio and Illinois alone the losses in
three years through the failure of state
saving and private banks and bankers
aggregated over $S,000000, of which
about S., 100000 were in Ohio and about
$6,O00,000 in Illinois, the total lCsses in
these two states being greater by ST.
79S,913 than the total losses to creditors
have ever occurred.
I'm eight years the losses to creditors
through the failure of national banks
in the cities of New York and Brooklyn
were sol, 900, while the losses by saw
Ing banks in the same two cities for a
corresponding period were nearly $4,-
100000"
In addition to the above, it may be
stated that according to a late report
of the comptroller of the currency there
were during the year ending June 80
1891, failures Of III banks, brokers,
trust companies and saving banks in
this country, having IN aggregate of
liabilities of over $3S,OOOOOO and assets
of but S2O,000,OOO.
These figures are not only of import
ance to tinanciers, but they are of vital
interest to every laboring man and
small capitalist. The men of small
means are deeply concerned in having
sound money. There is nothing which
can more seriously threaten working
men and those of moderate means
than a revival of wildcat banking.
consider the argument which the figures
ciNnn above nrnSnnt