Year: 1869

at the st. Julien Hotel.


Major W. c. Beardsley, OF Auburn. and General J.


M. Brannan, OF the United States Army, are at the
st. Nicholas Hotel.


The National Bank Observation-Disclosures.
tion for the Coming Conflict.


movement of significant Importance to
the general interests of the country and preg-
nant with results of an economical and political
character to the entire community has been
consummated in this city during the past week.


For the last six years efforts have been made
by skilful and designing men to organize a
general association of the national banks of


the country for the purpose of enabling these


institutions to act as unit in matters of com
mon concern to them. During the past week
this aim has been attained through conven-
ton held at the st. Nicholas Hotel at which
delegates from national banks in nearly every
State in the Union were present. and the asso


citation is now organized and in full operation
for good or for evil. 1t assumes to be a vol
untary organization, but it will be readily seen


by every practical man that, as soon as any
considerable number of banks begin to act
together as a unit, the other banks must come
into the organization and obey its behests, or
be ruled out as ''rats" that are not to be per-


mtted to participate in the business and ex-
changes of the country.


Very few figures will suffice to show what a
power this organization will possess in the
| land for political or other purposes. Accord
ing to the report of the Comptroller of the Cur
rency presented to Congress at the opening
of the last winter session the total number of
national banks at that date was 1929. The
amount of loans reported by them was frac-
tion over So, ,35l 100000. This sum was dis
tributed in l, 755, 2s3 distinct loans, and if we
suppose that only two persons on the average
were interested in each loan we find that an


aggregate of 3,5CO,000 persons are affected by
the policy of the banks. Many of these loans
were no doubt made to parties who were already
borrowers, and the number is fictitiously great
but, on the other hand, as the policy of the
banking interest affects many persons who
do not appear as borrowers on their books,
we may safely assume that three and
quarter millions of men, filing the most active
circles of trade and manufacture, are bound,
for veal or for woe, by the pocket nerve to
the car of the National Banking Assoc iation.
To this element of power we must add the
significant fact that every Senator and Repre-
sentative in Congress, in fact or in aspiration,
is probably either stockholder or director in
some one of these banking associations.


With this practical exhibit of the power the
organization will possess we may now look at
its professed motives Of action. Mr.. E. G..
| Spaulding, of Buffalo, in his opening address
| as chairman Of the convention, after duly
praising our national banking system as the
best ever devised by human wisdom and stat
| ing that it is so interviewer with the business
| interests of the country asto form "a commu-
| nifty of interests between the banks, the gov


ernment and the people, proceeded to say -
| The object OF this convention is to make new


organization which will and In perfecting the system
poses intended by their organization, namely,
| sound and well managed business banks and


prompt redemption OF their currency In gold and sill
ver IL Is very obvious that the country must pass


through an important crisis before we reach specie
payments and that there must be mutual aid and


cooperation by all parties in accomplishing that
result. But when Will specie payments be


resumed' THIS is difIcult question to answer. II
clause unconstitutional In rendering judgment upon
the Kentucky case, which has been argued and SUBJ
mtted, 1t would compel return TO specie payments
at an early day but II no such decision IL made It
| Is very uncertain when resumption will take place.
Expressed In shorter and palmer terms, the


acknowledged object of this banking associa-
| ton is to save themselves during the coming
convulsions that will attend the transit Of the


country from paper to specie currency.
| All history shows that when great financial


changes occur the banks are the first to take
| the alarm and to protect their own interest by


pressing their customers to the wall. That we


are approaching a period Of great financial


changes no sane man doubts, but what events


will hasten or delay their development Is one
| of the secrets OF the future. Mr.. Spaulding


evidently thinks that the decision Of the


Supreme Court in the Kentucky case, which


has already been argued and submitted, may


bring them about at an early day. Ali human


decisions, not excepting even those of the


Supreme Court are more or less influenced by


the emergencies Of the hour, and principles bow


before the needs Of every community. Does


it perhaps occur in this connection TO Mr..


Spaulding that president representing sixteen


hundred organized national banks might bt


listened 10 by Supreme Court2


The fact Is we are approaching grea'