The Roswell daily record. [volume] (Roswell, N.M.) 1903-current, 1909-11-29
j. s. BANK
A FAILURE

Washington, Nov. 29.-That the
United States has had two unsuccess-
full experiences at running banks, and
should, therefore, act slowly in con-
sidering Wall Streets central govern
ment bank idea, is being urged by the
small bankers of the country, who
are avowedly antagonistic to the pro-
gram of Senator Aldrich.
The country bankers are directing
attention to the fact that the great
est obstacle in Canada's struggle to
develop has been her antiquated sys-
TEN of big central banks with branch
es in every country town, through
which all surplus deposits are central
lied in the large citires.
The Canadian merchant or manu-
facturer in the outlying town has
been unable TO secure bank accomo-
dations needed in his business, while
idle money from his own town, which
a locally owned bank would gladly
have loaned him, has been sent to tae
head Offices of the big city bank with
local branca, perhaps to be invest
ed in far distant place TO earn div
iden6s for the stockholders.
The year 1871 marked the first bank
of the United States. In that year
Congress chartered a bank for 20
years. Its methods brought about, Is
years later, the first bank panic in
this country. Bribery and corruption
in political affairs were the domi
nant features of the government s
first experience in banking.
In 1917 a second United States
bank came into existence. Within a
short time it had Is branches. In No
yeFnber, 1918, il was insolvent. Forty
Con greSsmen wno held stock in the
institution, however, enabled it to
continue business. For the following
five years there was keen financial
distress throughout the country.
In 1892 President Jackson vetoed a
renewal of the banks charter, the
bank retaliating with coercive meas
ures. ], contracted the money mark
cts aad caused great distress. Other
banks sprung up. The United States
bank continued operations under a
charter obtained by bribery from
the state of Pennsylvania, reissuing
all Of its Old notes. The crash came
in 1897, when 100 New York firms
went TO the wall in one month. Every
bank in the city suspended. Congress
vas forced to pass an act forbidding
the Pennsylvania Bank of the Unit
ed States from using tae notes of the
old United States bank. Then the
New York banks resumed business.
Put the reckless operations of the fl
nanciers VINO owned the United
States bank brought on disaster. Oct.
10, 1899. il failed, carrying to ruin
343 of the $50 banks in the Union and
causing sixty-two to suspend for a
time. Its debt to the bank of England
alone was $4,000, 900, and the fail
ure, coupled viii the consequent re
| pudiatiOD of Indebtedness by several
states, destroyed American credit a
! broad.
In spite of the assurance given by
Senator Aldrich in his speeches IN
| the west, that politics will play nc
part in a central government bank
| The small bankers are apprehensive
| lest the contrary prevail. They can
hardly conceive that IL would be in
| keeping with the game of politics for
| any party to set up an institution
| such as a great government bank
| without manning IL with politicians
| as only by taking advantage of such
| opportunities are great political mach
/ ines built up.