"The private banks were not so conservative [as the Dayton Branch of the State Bank]. In the competition for business they were urged on by a generous but dangerous rivalry, and offered and paid to their depositors on daily balances, interest at the rate of six per cent per annum. As a consequence, there was gathered into their keeping a vast sum, for those times, of the idle money of the city and county. This, in turn, they loaned to their customers at rates varying from ten to twelve per cent, seldom more, seldom less, the difference in the rate indicating the grade of paper offered, and as the loanable money exceeded the legitimate wants of our city, outside paper, that is, paper from adjacent towns and cities, was in demand.

"As much of the outside paper which was offered and taken could not necessarily have been first-class, heavy losses followed from the portion still unpaid when the inflation bubble was punctured.

"I remember overhearing a conversation between the heads of our firm and Joel O. Shoup, a neigh- [page 157] boring banker. Mr. Shoup was trying to dispose of the paper of Gregory & Burnet, and Ezekiel Ross, of Cincinnati. As our firm hesitated about taking the paper, Mr. Shoup became somewhat excited, and bringing his fist down on the table with great force, exclaimed: "Winters, any man, having the money, who would not discount old Zeke Ross' paper, ought to be hanged." To avoid this alternative the paper was taken, and is still held by the purchasers.