The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1893-08-04
S p E CT FIG S .
A REMARKABLE SHOWING.

|
There has been great deal of ex-
aggeration in this financial stringen-
cy which we are experiencing. In
deed it would be strange if there were
not more or less of it. But while
things have been bad, they have not
been as bad as has been reported For
instance it has been the current re-
port that during the past few months
! 200 national banks have suspended.
| In regard to this. Mr.. Eckles. comp
troller of the currency publishes a
statement to the effect that out of a
total of 1880 national banks in this
country. only los have closed their
doors. OF this number only thirty
! seven have gone into the hands of re-
ceivers, the remaining sixty-eight be-
ing absolutely solvent. These sixty
eight have beeD forced to close their
doors because of the scare which
spread among their depOsitors, and
they were obliged to temporarily take
this course in order to protect their
interests as well as those of their de-
positors. Some of these banks have
already resumed and others will short
ly and their depositors will receive
every cent they have therein.
Even of the thirty-seven that have
gone into the hands of receivers, their
depositors will get nearly all, if not
all, of their money. Some Of these
will undoubtedly be reorganized upon
a stronger basis, but few Of them hay-
ing failed because of Acknowledgement.
This is indeed remarkable record
when we take into consideration the
fact that this financial stringency is
one of the longest and most severe
the country has ever experienced. 1t
fully demonstrates the sound basis
upon which the banking system of
this country has been built.
There is another feature which
should be fully considered by the peo-
pie, and especially at this time when
congress is about to convene, and one
of the pledges of the Democratic plat
form is the repeal of the 10 per cent
tax on state bank issue, and this is
that Notwithstanding the suspension
of these banks, covering almost every
section of the country, not a man, wo-
man or child has felt the least fear re-
gardiDganational bank note which has
in the mean time come into his posses
sion. In fact no one has kept track
Of the banks which have suspended in
order to identify bank currency which
he might receive in the course of bust
ness transactions, as would be the
case if state banks were allowed to is
sue notes.
Perhaps the most interesting
feature to Minnesotians is the fact
that out of the los suspended banks
not one is located within the borders
of Minnesota. This speaks well for
their management and also for the
good sense of the people and will help
the reputation Ct the state
in financial circles every where. On
the whole the record made by the
banks of this country is fine one, land
in referring to them as places Of de-
posits for money, the ST. Paul Pioneer
Press says:
These facts prove beyond question
that there is no safer place for any
man to put his money or to keep his
money than in a we'll managed ma
tional, state or savings bank For
the business of bank is to make safe
investments of it's own capital and a
certain proportion of the money of it's
depositOrs. There is no bank which
is able on single day to pay all it's
depOsltOrS in full at once; a consider
able proportion of it's money is loaned |
to business houses in good credit and
plenty OF assets payable at stated |
short periods. 1t is loaned under rig
id restrictions as to the proportion of |
deposits which can be so used, upon |
conditions which guarantee it's safe |
return. So that ever dollar of every |
depOSltor's money in any well 'manag-
ed bank is as thoroughly secure as
If it were locked up in safety vault. |
This fact is demonstrated by the ex-
perience of the national banks of this |
country during crisis of financial |
stringency which has been unexem-
plified in it's severity or in it's dura-
tion. The vaults of good banks are
the real safety vaults of the people.
THE Financial Times hgure that the
0enOSitS in tho hapkinp ;nc+;+n,;onc