The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1895-11-01
STUDY FINANCE.
The Social Science Club Turns Its At
tentiOn to This Intricate
Que stiOn.
1t Listens to Able Papers From
rlessrs. Currier and Wise, in Re-
lation to Our Banking System.

The meeting of the Social Science
club last evening further developed
the fact that the program for this
year is likely to prove most interest
ing and profitable one. There was a
large attendance of members, and the
papers on Banking System and Laws
with Special Reference to National
and State Banks" were listened to
with the closest attention. Mr.. e. M.
Currier read the paper which was full
of excellent points, well put. 1t treats
of the subject from somewhat Popu-
listic standpoint, but in very fair,
frank manner. The discussion was
led by Mr.. John G. Wise, Jr., who
wrote a paper somewhat more eX-
tended than usual, showing the bene-
fits which have come from our ma
tional banking system, and ably an
swering many of the points raised in
the first paper. The subject being
one of general interest and treated
from the standpoint it is, we comply
with a request of the club, and pub
lish the papers in full. ...
Our national and state banking sys-
tenn is the topic for discussion this
evening, and l frankly confess that |
approach this subject with much trep-
idation, feeling as / do my inability
to do it justice, and right here | wish
to say that while l may severely criti
else our present methods, make no
attack upon individuals. ObServa-
tion and experience has taught me
that there are good and bad men in
all lines of business, banking inStitu
tions not excepted, and if debtors
pay their notes promptly or in lieu
thereof give full and honest eXplana
tion accompanied by good reasons for
asking an extension, very few bankers
will refuse to grant it; but if man
makes practice of letting his paper
become overdue, he must expect to be
squeezed little occasionally, for in
some respects human nature has not
materially changed since the time
when Jacob got ''cinch" upon his
brother ESau, and in consequence be-
came the most influential and re-
spected citizen in all the country
round; for then, as now, men were
prone to worship the almighty Dol
lar"
We, the people, have, through our
representatives at Washington, al
lowed ourselves to become burdened
with class legislation to such an eX-
tent that the distinction between the
rich and poor is widening rapidly, and
thoughtful men and women are
alarmed when, judging by analysis,
they think of the probable conditions
under which their children will have
to live: for we can only judge the fu-
ture by the past, and history repeats
itself.
Our duty as good citizens require us
to seriously consider the situation, to
the end that we may find and apply
the remedy in time lest the expert
ence of France be repeated in the
country of Washington, Jefferson and
Lincoln. For convenience shall open
the debate by synopsis of the history
of state and government banks, be-
ginning almost at the foundation of
the government. OF course, discus
cussiOn of any question seldom does
more then to intensity our previously
formed opinions, yet free and fair
statement of ideas is always realized
by a mind sufficiently broad to rea-
lie that.another'S thought may be as
good as ones own.
The first bank in The United States
under the constitution, was chartered
February 25th, 1871 by congress. 1t
was the work of the Federals who
hated and wished to avoid treasury
notes; but they were ''hoist by their
own petard," for it was so managed
that it's notes served nearly the same
purpose as government legal tender
does. The capital was Sl0,0O0,000.
One-ffth of the stock was owned by
the United States and four-fifthS by
the people. Six of the IS, 100000 were
government Indebtedness, and So, 000,-
600 money. The tenth section of the
charter made the notes of the bank
those of the nation, by providing that
for twenty years they should be re-
ceived for all dues to the government.
The law placed the government money
in this bank, and there it remained,
subject to the warrants of the treas
urer. The bank received the govern
ment revenues and paid the govern
ment debts. In reality the bank was
the treasury, and, so far as inapce
was concerned, the government was
the bank. The name and credit of
the United States accompanied every
note throughout the world. All the
copper, silver, gold and paper money
of the nation was in the bank. The