Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1821-12-28
BANK INTEREST,"


The resolution submitted by Mr. Golden.
respecting the interest cxacted by the u. S.
Bank, has already been noticed in several of
the public prints. Some of the writers saw.
that the u. ). Bank, like all other banking IN
s'itulons, "eXacts SIX per cent interest on $50
days instead of the whole year of 365" But
IN this respect, we understand, there is diff
ference between the charters of the Bank of
the u 3 and OF the Banks of Virginia. The
former restricts the Bank to per cent. per aa-
mum. The charter of the Virginia Banks al
lows them to take at the rate of IA J per cent
for every SO days which is in fact, a fraction
more tlan per cent. year. Our banks
therefore, abide by their charter The u. s. b
does not.-A calculator in Baltimore asserts.
however, that Mr. Golden errs in stating "the
extra interest charged for 20 years at the rate
ol . days In the year, amounts to the princi-
| pal."--
| p" If we were rightly taught Arithmetic seventy
'neS i've days amount 10 $50 days, the interest fol
wncn Tune at the rate of six per centum per annum
- i0ol-lOO00 or fraction over To- 100 and as
IA 40 Years business, the gain would he SO wears on
days, and 68 on 10 days, and so on, the averages
NH be 3li years on $50 DAYS, or S5755l--l0 10000
winch sum, compounded nj 8 per cent for said 81
Years, amount in all To III q co. for the whole period
| oil 'oyears now the charter of the Bank was moi
granted Tor 40 years. for 80, us the honor a
| BILE gentleman says"
| ~ 0"'iiC Niitti lilfOWS OUT another remark
III relation to another means, by which it is
supposed the Banks generally pocket more
than the legal interest
" We believe there is not a bank in the T. States
| and never has been one, including the old bank oil
Tie U States that did not charge interest At the raie
OF IL per cent. per month of 80 days-in H. Yor;
aud eastward, we understand il is the practice of all
| The banks, including the Branches of the T. States
Bank, To charge 63 days interest for so DAVIS and
days OF graccin Philadelphia in this civ and south
ward ana westward, are informed that the prac-
ice Is as UNIVERSAL, TO charge O. DAYS that is the
Bank charge for the day the loan is made and for the
day you receive payment back again-for the person
VINO DOrrOws may receive the money AT nine in the
morning. and need pay it back Till in the after.
noon, winch includes the whole Of the business time
Tor winch interest IS charged him, 10y the Bank"
! This practice, it is said. began in the Bank
| OF Pennsylvania, wh+lit began to do accom-
mediation paper.-The neto note not taking
effect till the day after it was dated, and the
old one falling due the day before. on discount
day. the drawer might be under the necessity
of borrowing the money till the next day, un-
less the bank had consented To place the pro-
ceeds ofthe new note to his credit on that day:
he paying the interest on il for that day
| Thus the practice has gone on.
| A third circumstance about bank interest -
! For note of 500, the bank takes oTthe in
| terest lor4he time, and only advances YOU the
balance Thus, you pay the interest not ON
the 500, but on the sos Oh cts this. however.
is not considered as interest, but in the LIGHT
of rebate or discount, which they say, is le-
gal, as their charter authorizes them to dis
count notes.