New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1896-07-21
PREJUDICE AGAINST BANKERS.


prejudice against banks never fails to ac-
company an interruption of prosperity. The
banker stands to the minds Of his fellows for
the pOsscssOr Of ready money. He has money
to loan to those with security to offer, while
those having no credit find it useless to ask for
his aid. His business is dealing In money just
as n grain mans is dealing In wheat, and as
in a famine the merchant with stores Of -four
In his warehouse becomes an object Of envy
and hatred, SO the banker during an Industrial
depression Is looked upon with suspicion as
one who has what his fellows need and will
aid them only for hire. The harborng Of this
suspicion paves the way for denuncation Of
him on the charge that he grows rich through
others misfortunes. This feeling against bank
ers Is likely to be strongest In rural communf-
ties, where people live off their land, barter
produce and handle comparatively little money.
1t was especially strong in this country after the
Revolution, and 1t was one Of the serious OBJ
staces which Alexander Hamilton had to meet
in perfecting the financial system of the new
Government. In his argument for the estab
lishment of the United States Bank he con-
WINGED his countrymen of the narrowness of
their prejudice, and first gave to The United
States prosperity and credit.
Jew of Solomon's TIME an object of jealousy
returns with every new generation. Jackson's
war on the United States Bank was an out
break of the frontersman's hostility TO an in
stitution Of civilization whose workings he did
not understand and its success resulted few
years later in the panic Of 1881 The opposi-
ton to the National banks during and after the
War came from the same ignorance and jcal-
financial laws-as unchangng and necessary
as the law Of gravitation-whic made those
institutions so useful for the couniry's credit
and commerce. The same prejudice Is now
being diligently fostered by the opponents OF
sound money The banker Is represented us
the plotter against general prosperity the
demon who seeks to ruin his fellows, the miser
who boards wealth and withdraws it from the
people. That these representations should have
influence In hard times is not surprising. for
they appeal to the natural dstrust OF a man
who has not toward him who appears to have
even though the having be but appearance
though the store be but trust on which the
very ones most jealous Of the custodian have
claim. But as matter of fact the banker Is
the last person in the world to want panic
to knock down his debtor or to hoard his wealth
ance will interfere with his collections. and
perhaps prevent his paying debts Of his own
His highest interest is to be patient with n
debtor and carry him along rather than drive
him to the wall and have bad debt on his
books, ut once q loss and an indictment Of his
business sense. He takes no factories or farms
on his hands If he can avoid 1t. His aim is to
keep every dollar he can safely part with in
honI re h. -
to grow wheat or knit stockings make n profit
with 1t and pay It back with use to the banker
The more money the farmer makes and de-
posts with him, the brisker trade Is which
makes enterprises requiring money attractive
to business men. the greater the demand for
loans is, the better the prospect for their re-
payment without trouble Is, the happier Is the
banker. He does not fatten on general disas-
ter: His harvest time is the day Of prosperity
Because the banker does not want cheap
money people think he seeks TO corner
the currency and bleed debtors But this is
Just what he does not desire He Is debtor
himself If cheap money would benefit any
body in the long run 1t would benefit him. The
chartered banking institutions Of the State Of
New-York are to-day indebted to the public
In the form of deposits subject to check In the
them in loans and discounts S1261. 100000
Thus they. the bankers. are debtors for almost
SG00O0O00O Surprising free silver should
come. With their great resources the bankers
could prepare for the emergency They could
turn their property into gold more readily than
others; they could change that gold into silver
and they could discharge their millions OF in
debtcdness for - cents on the dollar and save
enough by the transaction to compensate them
for any loss by failure Of their debtors. The
bankers would get on better than others. and he
ready for the reaction and depression which
would inevitably follow. 1t is not because they
cannot take care Of themselves that they are
opposed to free silver but because they know
the laws OF finance. and realize more clearly
than others that free silver Is n violation Of the
principles Of safe business and means certain
ruin In the end