Year: 1867

Moro Exposures OF the National BANKS.


We had an inside view OF the working of the
infamous national bank system In Illinois,
Michigan, and some other parts, through the
special correspondence Of the HERALD pub
lished few days ago. Yesterday we published
additional revelations from our correspondent,
who had reached Indiana, where, he says, next
to Illinois, there are, perhaps, "more desperate
financial adventurers than in any State Of the
Union" Indianapolis Is the fountain head Of
wildcat speculations and banking irregulari-
ties. Since we commenced to make these ex-
posures the Treasury Department and other
defenders of the national banks have endeav-
ored to make it appear that the government
risks nothing and is amply secured for its de-
posts. We expressed our doubt of this pre-
tended security. Or course there could be no
pretence that individual depositors are So
cured The government cannot protect them.
But 1t is evident as our correspondent says,
that the deposits Of the Treasury Department
are not safe. Many of tho banks Of Indiana
have more than half their entire capital floating
about in financial ventures, besides q very
ASA6O RoAs VI BOVClnluCut 0uO Auulvluual uO-
posts. Sometimes, when the government has
drawn upon them for even tenth Of the
amount on deposit, they have not had the funds
In their vaults to meet it, and only saved their
credit by few hours grace and through ex-
traordinary efforts in borrowing. In one case
thousand dollars whore he had deposited nearly
half million, and the cashier was in suoh q
strait that he had to pay out gold interest
bearing notes just as the interest was maturing,
thus being compelled to make great sacrifice
in this extremity. It is confidently asserted,
thirty millions Of government deposits in the
national banks Of the country not secured by
one cent Many Of the government officials, 1t
is alleged, receive from three to five per cent
on deposits in these rotten institutions for
overlooking their condition.


Public opinion against the national banks is
growing stronger daily in the West. Almost
all intelligent people, and particularly COM
mercial men unconneoted with these institu-
tions, denounce the system as disgrace to an
enlightened government. They cry out for
greenbacks. They want the national bank
currency swept out Of existence and legal
tenders substituted in their place. They see
the gross favoritism to this monstrous mono
poly by taxing It less than other banks and
other business and the community at large are
taxed. They have their eyes opened to the
infamous fraud upon the country in giving
these privileged monopolists twenty millions
year profits on their circulation, when these
profits ought to go to the government for the
benefit Of the people. This growing indigna-
ton against the monstrous and dangerous
system must swell up to national movement.
Institutions 80 ruinous to the industrial inter-
ests Of the country, so oppressive to the poor
and so full Of danger to the republic, cann OF
continue to exist They will be swept away
in storm Of popular indignation, and Mr..
Chase, the father Of them, a. we'll as Mr.. Nc
Culloch and all other defenders Of them, will
become moro odious than Biddle. Of the old
United States Bank, or Law, Of the grand
Mississippi swindle, ever became. In future
times people will look back with wonder that
such system could ever have been estab-
lished in this enlightened age and republic.