The islander. [volume] (Friday Harbor, Wash.) 1891-1899, 1895-11-28
tions Of Thanksgiving upon Plymouth
rock.
WILD CAT BANKING.

banks and not one in operation. There
seems to be no probability that more
than one of them will reopen for bust
ness and no certainty as to that. With
aggregate liabilities of upwards of $500,
600 and assets of such doubtful value
that in the cases of three Of the institu-
tons at least, which failed in 1893,
very little has been realized in over
two years, it is not surprising that pub
lie confidence is shaken, the credit OF
many individuals impaired and bust
ness generally depressed. 1t Is unfor-
tunate indeed that the people who are
the innocent victims of the film fam
financiering of which these failures are
the result are practically powerless in
the matter. The creditors of the Ma
tional banks are in large measure at
the mercy of the comptroller of the cur
rency, who is empowed by law to pre-
scribe the conditions upon which they
may reopen for business. His will in
such matters is the law. There is GER
tainly something wrong in our finan-
cial system when such failures can re-
peatedly occur. The purchase of U. S.
bonds to the amount of twenty-five
per cent of banks capital stock
to secure it's circulation amounts to
very little as protection to depositors,
and the depOsitor who has put one
hundred per cent of his savings in Ma
tional bank which suspends derives
little comfort or satisfaction from the
requirement of the national banking
law that fifteen per cent of the deposits
shall be kept on hand. If he is held
up, so to speak, for eighty-five per cent
he is apt not to have very exalted
idea of the Irrational" feature of the
bank that has his mouey. In the case
OF the Columbia National, Of What
com, for instance, which failed in 1898,
only fifteen per cent of the liabilities
has been paid and an assessment Of
eighteen per cent has been made upon
the stock, thus releasing the stock
holders from eighty-fve per cent of
their liability, as the law provides that
only one assessment upon the stock OF
a National bank can be made, though
that assessment may be anywhere from
one per cent to one hundred. About
two years ago the receiver of this bank,
appointed by Comptroller Eckles,
made sworn statement of its condi-
ton, classifying the assets as good"
"doubtfur and "bad," and in this
statement he expressed the opinion
that if the bank should be permitted
to reopen under careful management
enough could be realized from the
assets to pay the depositors in full and
leave substantial surplus for the stock
holders. Nothwithing this hopeful
showing, however, he discouraged re-
opening when funds had been secured
for that purpose and the bank is still
closed with eighty-five per cent of its
liabilities unpaid and its stockholders
released from eighty-two per cent
of their liability upon their stock.
There is big screw loose somewhere
and it matters very little whether it is
in the System" or in the lack of hon
esty and sound business judgment
which seems to charactize the manage
ment of so many of the banks ii which
the people are asked to place their
money and trust.
Business men need banks of ex-
change and such banks ought not to
expect profit from speculations with
business mems funds. But the great
body of the people who are able by
patient labor and prudent living to
save little from year to year require
few drafts in the conduct of their affairs
and their money often lies untouched
by them for months or years. What
they want is a safe place for its deposite
"where neither moth nor rust doth
corrupt nor thieves break through nor
STEAL" and the government should see
that such places are provided by es
tablishing postal savings banks in every
city, town and hamlet in the land.
Meanwhile the National" signs which
delude SO many people by making
them imagine degree Of protection by
the government that does not exist
had better be taken in-the people
l. Al