Year: 1876

posts, consequently the money entiuS'0u
to their keeping is all bona fide deposit
OF surplus capital, and not intended to
multiply wealth. All marketable capital
goes to the saving and trust companies,
where an interest Of six per cent is paid,
and the money of course is sold in ways to
pay this six per cent back, and add some
thing more toit. Previous to the panic
we had banking institution here that
bought deposits by paying large per cent
age on them, and fora time its success was
almost unprecedented. 1t seemed to at
tract money in some way, always had a
plenty to take hold Of paper, but prosper
ity gave their business greater latitude,and
reached deep into the whirlpool OF specula-
ton, and like many others it went under
the tide. Appeals were made to the banks,
and they entertained the prospect of help
idg them out, but finding that such help as
they could offer would do them no good, as
the concern was insolvent, the idea was
abandoned, and then it Was discovered who
the depositors were; some of the very
best men in Wilmington, who for the pro-
fit of a small per centage carried their
capital to mere straw concern, and re-
ceived in the settlement about forty cents
on the dollar. This tends to show, said
the bank officer, what some people will do
to gain but small profit upon their
money. If the banks gave interest it is
reaso nable to suppose that they too would
have any quantity Of this custom, pressing
in upon them.


You stated that you would like to know
how it was that if the bank deposits did not
Auctuate, how it could be consistent with
depression in business of all kinds. That
is one word in favor of our business men,
who show remarkable skill in money man
agement. 1t is done just in this way
They never let the cost of business exceed
its income. For instance. carriage builder
has large amount of stock on hand, and
the market is dull, he goes 10 further, but
commences looping off the expenses to
prevent drainage on what he has in bank
An overplus ofthe regular deposit, said the
banker, goes for improvements about the
works, and in this way an even bank ac-
count is kept all the time. If the deposit
exceeds more than its usual limit, and what
is generally used for Improvements, al
outlay is made in something..else. In this
way the business men Of Wilmington con


duct their affairs with an eveness, tha
never causes them trouble in maxim.
calculations. 1t is this class that mos
always come out even in the long run, ant
who stood it best in the late panic wher
others were tottering and falling daily
Those who went under were of the class
that in the eager graspings Of desire to max


money, carried their surplus capital t,
places where it would pay interest; turne,


It out upon the market to Craze on tn


large quantity of paper floating loosel,
around, and the sresult was that, the pani
filled their pockets with an accumulation


of worthless crumpled paper, known il


business circles as negotiable notes. Thos


who have kept their money in an even cir


culation, putting it just where it was Ger


tain, and not risking it with the spasmodi


pulse of a feverish market, are the one


who to-day are the most solid business mel


of our city.


The former is the class who does busines


up to the very last cent, and would rathe


overdraw his bank account than not, Will,


the latter does business on so much year


and the bank account increases with th


increase of business it is not deposit O
/, ten thousand dollars to-day and an hundret


dollars tomorrow. This is one reason VIII,


banks are expected to make improve


ments instead of the man. Heis of impres
sion that they must hand him the none,
and take notes or anything he offers, or il
in other words, that banks are t.


be regarded as mere public con


veniences, to launch out their capital O.


accommodation paper; whereas, the legiti


mate uses of bank are to furnish men ia
cilities for raising money, but not purel


for the good of the public, for if the ban


don't take care of itself the public certainl
will not The general mistrust Of every
thing that the stringency Of the times ha