own, Brothers & Co., FIDELITY AND CASUALTY COMPANY, No. 59 WALL STREET, NEW YORK, -BUY AND SELL LLS OF EXCHANGE -ON T BRITAIN, IRELAND, FRANCE, GERMANY, ssue Commercial and Travelers' Credits in Sterling, Bonds issued guaranteeing the fidelity of persons holding positions of pecuniary trust and responsibility, thus securing a Corporate Guarantee in lieu of a Personal Bond where security is required for the faithful perLABLE IN ANY PART OF THE WORLD, AND INformance of the duties of employes in all positions of trust. ANCS IN MARTINIQUE AND GUADALOUPE. TELEGRAPHIC TRANSFERS OF MONEY between this ad other countries, through London and Paris. re Collections of Drafts drawn abroad on all points OLLINS, BOUDEN & JENKINS, Interest allowed on Deposits subject Investment Securities always on hand. aine, Webber & Co., BANKERS AND BROKERS, so. 53 Devonshire St., Boston. (Members of the Boston Stock Exchange.) ACCIDENT POLICIES. Policies issued against accidedts causing death, or totally disabling injury, insuring from FIVE HUNDRED DOLLARS to TEN THOUSAND in case of death, and from THREE DOLLARS to FIFTY weekly indemnity in case of dis abling injuries. vote special attention to the purchase and sale of Mail, Baggage, Box, Gondola, Flat, Gravel, Ore, Coal, Mine, and Hand Cars; Kelley's Patent Turn-Tables, and Centers for Wooden Turn-Tables; We have, in connection with our Car Works, an extensive Foundry and Machine-shop, and are prepared STEEL Secretary, N. LEISER. FROM 1-4 TO 10,000 lbs. WEIGHT. True to pattern, sound and solid, of unequaled strength, toughness and An invaluable substitute for forgings or cast-irons requiring three-fold 15,000 Crank Shafts and 10,000 Gear Wheels of this steel now running CASTINGS CHESTER STEEL CASTING CO. 407 Library St., PHILADELPHIA, Works, CHESTER, Pa. NEW YORK, LAKE ERIE, AND WESTERN RAILWAY TO THE TRAVELING PUBLIC. During the Centennial season-six months closing September 10, 1876-the Erie Railway carried almost THREE MILLION passengers, without a singe accident to life or limb, or the loss of a piece of baggage. And for a whole year the official records of the United States Post Office Department show the arrivals of Erie Railway trains in New York, on time, to be from 15 to 27 per cent ahead of competing lines. UNITED STATES. ENGLAND. FRANCE. GERMANY. AUSTRIA. SPAIN. ITALY. SWITZERLAND. HOLLAND. SCOTLAND. P. O. Box 2,878. RAILWAY TRAIN BRAKES, SALES OFFICE, 15 GOLD ST., N. Y. Represented by THOS. PROSSER & SON The EAMES VACUUM BRAKE is confidently offered as the most efficient, simple durable and cheapest Power Brake in the market. It can be seen in operation upon over seventy roads. Steam Navigation, Commerce, Finance, Banking, Machinery, Mining, Manufactures. QUARTO SERIES.-VOL. XXXVII., No. 48.] History of Banks and Banking. S. John Jay Knox, Comptroller of the ncy, concluded on the 17th inst. his of three lectures on the History of the ng System of the United States, before udents of Johns Hopkins University, at nore, Md. These lectures were largely Hed, not only by the students, but also ny of the leading bankers and business of that city. Being of general interest ncluded to transfer to our columns the -ing resume of them from the Baltimore NEW YORK, NOVEMBER 26, 1881. [WHOLE NO. 2,379.-VOL. LIV. cordwood. The mortgage securities of these palace in Philadelphia and its twenty-five banks were insufficient to realize enough to branches in the principal cities. Its employees pay the debts, and twenty-eight years after were five hundred in number-all men of its organization, and many years after its fail- standing and influence, and all liberally salaure, creditors were still clamoring for their ried. Its shareholders resided in every State just dues from those few stockholders who and in nearly every county of the Union. Its were solvent. bank notes were received at par everywhere Many other like incidents of colonial at home, and in London, Paris, and other banking were given. A brief sketch of the principal monetary centers abroad. Its stock Bank of North America, organized in Philadel. was frequently at a premium of 40 per cent, phia in 1782, was then given, and among the in and it received and disbursed all the revenue cidents mentioned was a letter from Alexander of the country. It was not considered a politHamilton to Otho H. Williams, collector of cus- ical or partisan institution, and in the presitoms in Baltimore, in the year 1779, instruct- dential campaigns of 1824 and 1828 it was not the first lecture, which was given on the ing him to receive the notes of that bank and so much as mentioned. It was a great surprise, inst., Mr. Knox commenced by defining of the Bank of New York which were payable therefore, when General Jackson, nine years harcter of the business and functions of on or before thirty days from date, in payment before the charter expired, presented to Connk, and presenting the magnitude and of duties as equivalent to gold and silver. It gress constitutional objections to its recharter. rtance of the banking business in this was the moneys received from these two banks, His objections were believed to have origitry, aiter which he announced that his which are still doing a substantial and prosper-nated from partisan motives, and a desire that lectures would consist of a brief review ous business as national banks, that paid the his friends should control the patronage and nking as it has existed in this country first instalment of salary due President Wasb- management of the bank; and a quotation its organization, and would include; ington and the Senators and Representatives from the speech of Calhoun and from other colonial banking previous to the adoption and officers of Congress during the first session authors was given in corroboration of this e constitution; second, the subsequent under the constitution, which began at the view. ms of banking authorized by the laws of city of New York, March 4, 1779. nited States and of separate States; and the national banking system, including of the charcteristics of modern banking. lecturer then gave a brief sketch of the of paper money, first made by the colo1690 and subsequently, and of a project hn Coleman and others of a land bank, I was modeled from a plan proposed and bly reported by a committee to the e of Commons, in England, a few years A graphic description was given from alay of this project, which was finally de1 by the united force of demonstration lerision, which produced an effect even e most ignorant rustic of the House. The bank project at Boston was not so easily In the second lecture of the course, given on ted. It was organized in 1740, and among the 15th inst., the lecturer, after giving a who favored it was the father of John sketch of the plans and powers of the second 19. Each stockholder gave to the directors bank of the United States, which went into le to landed estates, and received its operation in 1816, gave an interesting descripalent in bank bills. Circulating notes tion of the bank at the beginning of the adininto $750,000 were issued, and five per istration of General Jackson, with its capital of of the capital was to be paid annually $35,000,000--its loans,circulation and deposits e notes issued or articles manufactured. manufactures" consisted, among other of hemp, cordage, beeswax, tallow and A brief sketch was then given of the Bank of the United States, organized in 1771, and of the efforts made to renew its charter at its expiration, in 1811. A bill for its renewal was lost in the Senate by a tie vote, and in the House by a minority of one vote. The war of 1812 was carried on by the issuing of treasury notes, which were at a discount, and by the notes of State banks, that were issued in large amounts, bringing on a monetary crisis which finally revolutionized the opinion of Congress to such an extent that a bill for the renewal of the charter was passed by Congress, which was vetoed by President Madison in January, 1815. being in amount about one-fifth of the whole A sketch was given of the bitter party contests, which continued for many years, upon the subject of the removal of the deposits, and subsequently a graphic sketch was presented of the action of Senator Benton, of Missouri, during the proceedings of the Senate in expunging from its records the resolution of censure of General Jackson, which was adopted immediately after the order was given to deposit no more of the public moneys in the Bank of the United States. Following the removal of the deposits the banks expanded their issues and increased their loans beyond all precedent, consequent upon the deposit of public moneys with so many corporations. To the transfer of the public funds to private institutions in a large measure was due the inflation of 1835 and 1836 and the crisis of 1837, and the business depression which continued for five years thereafter. The Bank of the United States suspended with other State banks, and having failed in obtaining a new charter from Congress, obtained one from the State of Pennsylvania just previous to the expiration of the former, Col. Benton ascribing every circumstance of its enactment to corruption, bribery in the members who passed Telegraphing from a Moving Train the act, and an attempt to bribe the people forgers were allowed to have possession and by distributing the bonus among them. The control of its assets, and that there was not so circumstances attending the attempt to obtain much necessity for additional legislation as & Co., a patent was issued to a resident of On September 27th, through Messrs. Dewey a recharter of the bank under the Harrison there was for increased diligence and sagacity Santa Barbara, for a method of telegraphing administration, and the veto of President Tyler on the part of those who were in charge of from a moving railroad car. The invention in 1841, were then described. The passage great trusts. He closed with a general sum-enbles each freight or passenger train to have of the sub-treasury act,and its repeal and sub-mary of the advantages of the system, and its own telegraph office. Two wires are resequent passage in 1846, were referred to as stated that the rapid reduction of the interest quired instead of one, and these are suspended the final result of this most bitter and pertina upon the public debt had reduced the profit directly over the track, and above the moving cious political controversy, which continued upon circulation to a minimum; that the na- train. They are parallel, and about eighteen for eight years, from 1833 to 1841. tional banking system need not be dissolved inches apart. One wire is connected with a on account of the reduction of the public debt; battery at the station from which the train that the system could remain legally in ex. starts, and the other with a battery at the teristence with but a small issue of circulation minal station. They are so suspended that, by and with less than $100,000,000 of United A rapid sketch was then given of the Suffolk system in New England and the charter safety fund and free-banking systems in New York, and other similar systems, which were organized in Ohio, Indiana and Illinois, and other States bonds on deposit. That of itself was of the road to the other. The wheels are in Southern and Western States. The lecturer closed with a general review of the different State systems in operation at the time of the passage of the national bank act in 1863. The grouping of all the leading events connected with banking in the United States from 1816 to 1863-a period of 47 years-required great condensation, but the subject was presented in a clear and concise manner, and held the attention of the audience closely for more than an hour. The third and last lecture of the course was delivered by the Comptroller on the 17th inst. Mr. Knox commenced by giving a brief sketch of the passage, in 1694, of the bill establishing the Bank of England. A magazine writer in Philadelphia in 1815 first proposed that the public funds should serve in the absence of specie as a basis of the paper currency, and a plan similar to the present system was proposed by Albert Gallatin in 1831. In 1844 notes to the value of fourteen million pounds sterling were authorized to be issued by the Bank of England on government securities, additional issues to vary with the amount of ccin or bullion on deposit. The free banking system of New York was authorized six years previous to the last date mentioned, and was the first system which required securities to be deposited for bank issues. The national banking system was proposed in 1861, and encountered earnest oppo. sition. The organization of banks without capital or with stock notes was one of the great abuses of previous bank systems. The bank act carefully guards against such an abuse. The lecturer also referred to the frequent failures of State banks and private banks, in comparison with the losses which have arisen in the national banking system, and also com pared the expenses of receiverships under previous systems and the present. Under the head of duties of directors and examiners and receivers, he referred also directly at some an answer to the chief objection of opponents Electrical Railways. THE managers of the street railways in this country have had their atteution of late directed to the Siemen's electric engine with the hope that its completion would solve the problem of cheap transit. Mr. Widener, the President of the West Philadelphia Railroad, examined the Siemen's electric road while in Paris recently, where it was on exhibition at the great Electrical Congress. He told Mr. Siemens that the Berlin railroad on stilts, which is somewhat similar to the elevated roads in New York, would not be tolerated in the large cities of the United States, and advised the gentleman not to come here until he had something better. "There was an. other system of electrical railway," said Mr. Widener," and that will no doubt be what is wanted when it is perfected. On the front of each car, beneath the platform, is a dynamo box. Then there is a third set of wheels raised above the track. A belt six inches wide extends from these to the other wheels, and the power is given by means of this. Cars with this attached can be used upon surface roads." In connection with this subject a gentle a somewhat ingenious arrangement, light ranning wheels can move along them from one end sulated from each other, but are connected with wires which pass down through the roof of the car to the operating instrument, and through it complete the circuit. As the car moves, the wheels are drawn along on the wires just above it, and a constant current of elec tricity is maintained between the initial and terminal stations, through the moving car. Without attempting to enumerate the advantages of the invention, some of the more obvi ous may be mentioned. All the train reports and all orders from train dispatchers will be communicated directly to the conductors and engineers while the train is in motion. Passengers can receive and transmit messages at any moment during their journey, without any of the inconvenience now experienced. Directors and distinguished parties traveling in their own private cars will find it especially convenient to have a telegraph office constantly at hand. But the one great value of the invention after all, will be its preservation of life and property by preventing collisions. Almost every day. heart-rendering accidents are recorded of col liding trains. A lightning express rushes over long stretches of road between stations, with out knowing at what moment it may crash into an approaching train. Upon leaving a station all communication is cut off until the next ste tion is reached. With offices upon each mor ing train, and constant uninterrupted communication, not only with the head office, but with all trains moving lisions would be impossible, and the safety of on the same track, col passengers and freight would be enhanced five hundred per cent over the present system When not in use for railroad business, the lines can be employed for the transmission of ordinary messages.-Santa Barbara Press. Gospel Cars. A business man recently asked the Bestor Transcript why Gospel cars should not be st man well known in scientific circles, and at-tached to passenger trains as well as smoking practical one. He writes "There are hundreds of Christian men, whi delight in the worship of God, who spend four six to twelve hours per week on the rares between home and business. Now, what utilize this time to the glory of Gods of the length to the recent failure of the Mechanics' ers regard this railway car more as an adver- ntting close it would be for the business of the National Bank of Newark, and stated that while additional legislation may be required, tisement for themselves than anything else; the car. Instead of spittoons have a carpet: day. Instead of card tables have an organ or piano, have seats arranged facing the center of no legislation and no occasional visits of an to perfect it if they find it can be used on instead of cards have Bibles and Gospel s examiner could prevent the downfall of a American tramway roads. As it stands to books. I venture twenty years' experience that bank if subordinates who were robbers and day it is useless."-Philapelphia Record, the thing is practicable." BRANCH OFFICE: 53 Devonshire St., Boston, Mass. Mr. FREDERIC ALGAR, NOS. 11 and 12 Clements Lane, ized European Agent for the JOURNAL. ing officials. Their character is generally The second fact is, that the President is When the officers of one bank do bring Lombard Street, London, E. C., England, is the author to light erroneous workings in other banks, it is usually the result of accident clogging the ordinary routine of business New York, Saturday, November 26, 1881. Mail Matter. ONE-MAN POWER IN BANKING. A few of Entered at the Post Office at New York City as Second-Class rather than of suspicion. The banks he shoot him? According to his own adwhose affairs are absolutely sound and mission and the testimony of many witwhose workings are known to be reliable nesses, it is proved beyond the possibility and carefully guarded, are not going to of a doubt that he did. Now the quesTHE effect of the recent disclosures con- be materially disturbed by the unpleasant tions legally connected with this first fact cerning the mismanagement of cer- lack of confidence that recent develop- are not many, and can be settled without tain banks has undoubtedly been tempo- ments have created. The staunch banks the aid of a long and expensive trial. The rarily depressing to the financial market, whose affairs are most cheerfully shown to first question to be settled is, What was but the ultimate result will be beneficial the public and whose directing power and the motive? This has been answered by in so much as it leads to a more general business routine are supervised by a judi- the prisoner himself, "To make Arthur adoption and a more rigid enforcement of cious distribution of trust and manage-President." We cannot follow out the cautionary measures. It would seem that ment, will stand the stronger and the workings of Guiteau's mind to gather all a reliance upon a one-man power and its more cheeringly conspicuous for the over-the reasons for this motive. optional straightforwardness had been suf- throw of the institutions that have been them are so plain that all who will may ficiently indulged in by easy-going though left to the mismanagement of an erratic know them. He was an office seeker, well-intentioned directors to warrant their and unjustifiable one-man power. The and failing to procure what he desired waking up now to the truth that eternal alarm which has been expressed recently from Garfield naturally turned his mind vigilance is the price of financial security, concerning the reliability of our banking against him. In this turning of his mind as it should become of personal as well as system is in the main unfounded. The he could not help but notice that others, of national liberty. The man who "kept recent disturbances have come at an op- men high in authority, were affected like accounts in his head" makes an absurd portune time. The atmosphere may be himself. The unseemly spectacle of two spectacle at the head of a financial institu- clouded a little for a while, but the clear- Senators turning traitor to their own tion when disaster makes him conspicuous. ing away will show that there has been a party and resigning their positions in the It is lamentable that it needed disaster to healthful survival of the fittest and a United States Senate, and then returnshow the absurdity. stronger confidence than ever established to their own State begging a re-election, in them. that they might have the political backing of their State, with which to brow-beat the President, convinced him that he was. We remember a carpenter who came trotting down the street one day with both arms extended in front of him, with GUITEAU. nothing but air between his hands, which ON Saturday, July 2, the wires flashed in illustrious company. Add to this that were held at as even a distance apart as to all parts of the civilized world that he who was once the people's idol, and he possible, shouting to the passers by, the beloved President of the United who held the second highest post of hon"Don't touch me; I've got the measure States had been shot by Charles J. Guit-or, forsook the President and joined his of a door." The people he met saw plain- eau. On Monday, September 19, the fortunes with the two Senators, and it is ly the kind of a carpenter he was, and same wires flashed the sad intelligence easy to conceive that in the turning of when they wanted doors of a decent fit that the wounded President had died. Guiteau's mind away from Garfield, beknew just where not to go. Bank presi- Here are two facts about which there is cause of disappointed hopes, it was natudents and cashiers of the "one-man pow- no dispute-not even the slightest shadow ral to look toward these men as the perer" and "kept-accounts-in-his-head" order of controversy. The first fact is that sons who could realize these hopes for unfortunately for depositors do not run Guiteau shot the President, which he ac-him if Garfield was removed. If he rethrough the streets proclaiming their char- knowledges, and his acknowledgement is moved Garfield, Arthur would be Presiacter or announcing the measurements vouched for by persons of undoubted dent, and Grant and Conkling would be they have taken of their lethargie direct- truthfulness who witnessed the shooting, leading men once more. In this train of |
