The North-Carolina standard., 1838-11-14
FOR THE NORTH CAROLINA STANDARD.
BANK USURY!!

Facts for the PeopIe!!
The following startling facts in reference to the
usurious rate of interest, at which Banks do busi-
ness, and which the people are called upon to en-
throne above the Laws and Constitution of the
country, lately met my eye; and which for the
benefit of all interested, and especially the aboring
class generally, will thank you to publish in your
very useful paper. FREEDOM.
BANKING POWERS.
| We respectfully invite the candid attention of
| all business men to the facts and illustrations
contained in the following letter from "a Citizen
| of Ohio :"
MEssRs. ED1ToRs-I noticed with pleasure
in recent number of your paper, your remarks
upon the subject of bank reform in Ohio, and
assure you the subject has taken deep root in
Ohio, and is not confined to the supporters of the
present administration. Many honest wings have
become alarmed at the powers and privileges
which the banks enjoy under their charters, over
the individual capitalists, and the exercise, by
them, of ofauthority not conferred upon them by
law The investigation of this sub bject has
brought to light many things in relation to
banks of which the great mass of the people
have hitherto been entirely ignorant
The courts of the state have decided that a
bank debtor may transfer his property to, and
secure his endorsers in, bank, to the exclusion of
every other creditor. This privilege, Of which
the banks always compel the endorsers to avail
themselves where their solvency is doubted, is
odous to the people. /
The legal interest in Ohio is six per cent, and
money loaned on interest by individuals is pia-
ced on the grand list, which renders it subject
to taxation for all the purposes for which taxes
are levied in the State. w.t. state, canal school,
corporation, road, county, township, poor, and
school house purposes This tax will amount |
in general to per cent, but In cities and large
towns 10 two or more per cent.
Banks stock and bank loans are NOT taxed, !
bu. the banks pay directly into the State treasu-
ry per cent. on their dividends only.
| will now attempt to show the difference in
favor of BANK over an INDIVIDUAL, in the loan
of $1,000 for one year. A farmer loans TO
neighhor on the lst day of January, 1887 $1,000
for one year. On the 1st day of Janury, 1885,
he receives his money with six per cent. interest,
less by at least one per cent. tax paid on the mo-
ney loaned His 81 900 has then yielded him
$50 clear On the same day one of the Ohio
banks has $1,000 to loan B. applies for the
the condition that he makes it as good as the
funds in ninety days. He receives, after
deducting the discount, 1886. The rate of ex-
change, on the east is ordinarily two and half
per cent. On the first of April, July and Octo-
Der, he renews his note on the same conditions
paying $l5 discount and twenty dollars pre-
MUM; on the first of January he pays off the
note with S25 premium He has then paid on
1885 received, and Sl6O in discounts and pre-
miums But this is not all; S15 was left in the
bank on the first of January. $40 paid on the lst
Of April, $40 on the lst OF July. and $40 on the
first of October These several sums are loaned
by the banks at the same rate. If 1886 bring
The bank $160 in one year
Will hrin of no | ,