Staunton Vindicator

The money question is that most talked of in these times. From every part of the country, as well as this State, comes the cry of hard times, and incidental thereto among business men the National Bank system and National Banks come in for their share of discussion and criticism. As to the system, we have nothing to say now, but in regard to the National Banks of the South and their interest in and effect upon Southern communities we shall, as a duty we owe to our people, have a word or two to say. Judging from the National Banks in this locality, all in the South were started largely by the capital of Baltimoreans and Northern men to aid in building up the pecuniary interests of the people of the South. These foreign stockholders, as many of them have repeatedly asserted, did not take the stock in Southern Banks with the view of reaping a pecuniary profit directly therefrom, but, as we have said, solely to aid in building up the pecuniary condition of the South and increasing the field of their then contracted trade. Started on this idea and for this purpose, some have loaned money at fair rates to those asking their assistance, while others have loaned at most exorbitant rates, or else refusing to discount on account of "scarcity of money," have either bought the same paper at an enormous deduction with the same "scarce" supply of money, or sent the individual to a third party, who was furnished with a portion of this "scarce" supply, with which to buy up good paper at a large discount.

This torturing the legitimate system of banking and converting the Banks into mere shaving shops, to play upon the necessities of the people, has enabled many to pay large salaries to their officers and set aside a handsome per cent to their surplus fund and declare very large dividends to their stockholders.

Now this is all wrong. The Banks were started in the South, as we again re-iterate, for the purpose of aiding the Southern people and should have that end strictly in view. Instead of shaving them to the utmost extent, when needing assistance, to increase the dividends of stockholders, (which in some instances has ranged from 20 to 30 per cent a very large portion of which is sent to foreign stockholders, never to return, thereby impoverishing to that amount the very communities they were established to aid,) they should so manage their affairs as to render that aid to the people which was the object of their establishment. Let them cut down expenses. Some cashiers receive large salaries, while others doing twice the business get not over half so much. Clerks, Tellers, &c., may get but moderate amounts for the work they do, but we know there are leaks somewhere. Then, we repeat, let them cut down expenses, loan at a fair, living rate and though they may not declare large dividends, they will have benefited community much more, and indirectly largely advanced the interests of stockholders. As the meetings of Stockholders takes place everywhere in a few days, we beg leave to call their attention to the much talked of and crying evil of National Bank mismanagement and to take steps to correct it. Elect directors who will look to the interest of community, as indirectly effecting the interest and efficiency of the bank, and will not agree to pay large salaries to officers simply to pile up large dividends, drawn from the necessities of a people struggling with pecuniary embarrassments, but giving fair salaries and content with fair rates of interest, really aid the people of their respective localities.

If the stockholders do not attend to this and prevent their institutions from being converted into mere shaving shops, they can only expect squalls. Some individual, extorted upon, will with the U.S. Banking Law in his hand, not only defy them, but recover from them double the amount of his shaven note. Attend to this ye stockholders, in your approaching meetings, all over the South, and let "a word to the wise suffice."