Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1864-12-15

Connecticut % Minnesota.
Hew York. .-.....--. 100 lows .-............ 40
zeu Jersey.....-.-.... 10 Missouri.
Psnnsyvanis- Loo Kansas ...--.-....-t.
Eetraska Territory
Maryland ............. 3Kentucky....
District Of Couub is.... Tenne
virginia ............ Le1isias4. $40
West Virginia.
The paid-in capital Of these banks; the cur
rency delivered TO them. e considerable portion
Of .hsch. he states. has not been put In circula
,on.) and the bonds deposited With the Treasur
er to secure their notes. in the aggregate. sums
up ss follows: Capital stock paid in. sos ,s64.
5s7 2s: circulation. Sos .se4 $50. and bonds'de
posted, SCI .s6i $50
IImay be veil to inquire here how much the
banking capital Of the country has been actually
Increased by this new system. By the shosing
of the Comptroller. the paid in capital foots up
about one hundred and nine millions Of dollars
Upon this nominal capital about sixty siI mil
lions Of circulation have been issued. According
70 this exhibit. FIVE hundred and eighty -four
banks have only invested about forty three mil
lions Of capital This will be an average Of
about SIS, 600 capital 10 each institution. Ger
tsInly this Is a small addition to the banking
capital of the country, and the inquiry naturally
arises, where the proftf There must be some
humbug in the system considerable Of itin fact,
and the conclusion is fairly deducible from the
exhibit OF the Comptroller of the Currency. who
well understands the mysteries Of banking.
How much paid-in capital does it require
TO start National Bank o. a million
dollars nominal capitalf If not
mistaken, for every hundred dollars Of
bonds deposited with the Treasurer OF the
United States. ninety dollars Of currency is is
sued To procure circulation OF nine hundred
thousand dollars. then. al investment of only
one hundred thousand dollars is required. What
the profit Oh this investment The interest on
one million OF boni Is at 6 per cent is $50 900
This is paid in gold. which. at the rate of 200, is
equal. in greenbacks. to 1920. 900. So that for
100000 invested the return is annually $40 600
more than the capital paid 10. or one hundred
and twenty per cent. increase upon the capital.
If the expense of running an institution.s put
at $40, 900 per annum. which is certainly liber-
nj estimate. we find that the yearly profits are
equal 10 the whole amount invested Is not this
profitable operation2 Legal interest, six or
seven per cent is regarded By sound fnsnciers
a. a full equivalent for the use of money but IN
der this national banking system enormous
profits can be and are realized And that such
Is the case, no observer Of passing events car
fail to notice; that while banks rapidly mul
tipying. that banking capital. for Legitimate
banking purposes. has not been increased.
What public benefit is there in such banking
system Does il add one dollar 10 the nations
wealth 7 To sum up the matter 10 few words
We inquire IL it. Is not cunningly deyised
scheme. BY which a small portion OF the com
munty can live OF of the labor of the many
Legitimate banking is no doubt public con
venience There is a necessity for some agenc,
in conducting the exchange OF the country. bu
il should be based upon actual capital.
The Comptroller Of the Currency. while sdvo
eating and urging the extension of the nations
banking system. even TO the breaking down o.
State institutions. furnishes = strong argument
against the financial or banking policy be is Ia
boring to force upon the country. He SAYS IL
his report:
:" The expenditures OF the govern meat hs VI
prices. There would have undoubtedly been ar
expansion in less degree. it ia true. but still Al
expansion. IN the war had been carried on upon q
specie basis Prices of all the necessaries Of life
as we'll as Injuries. and of everything which
the government must purchase in the prosecu
ton OF the war. are enormously high
and the penalty il yet 10 be paid for the
imitation, in Increased taxation. and the ruin
which must overshelm the thousands who be
md aetu he bel EFF Mt he Pm
prosperity Of the country Is real, aud not to be
interrupted Fortunate will the country be il the
be closed and prices reduced TO former
standards without collapse which will as great
~ excel in the extent of lie disaster that which
occurred at the close OF the last war with Eng
land a. the present war excels that In cost
hess and magnitude
Instead Of laboring TO prevent. or even &c
mitigate the very Disasters which IL is predicted
will result from the expansion OF the currency
and the ruin which must overwhelm the thou
sands Who believe, and act upon the belief. thai
this apparent prosperity Is real aud is not to bt
interrupted. we find the financial officers Of ths
government faithless to their own convictions
and doing all in their power 70 encourage the
deIusion.
After a careful reading of the repor, of the
Currency Comptroller. no evidence Ia furnished
that the ave hundred and eighty four Nations
Banks have added dollar to the business capita
of the country. that they have in any
wise increased the national wealth The only
purpose they have served ss distinctive fnan-
cial system has been 10 advance the political
IDEAS o. the party in power The object OF the
national banking system. a. foreshsdowed by IT.
originators and advocates. is to make tue wealth
of the country tributary to the rehabilitation o
power And such will be its effect the bubble
does nOs burst.
We will notice some other features presented
IN M AcCuLLocH's able. but s9ec:ous. report
hereafter aFS ss99
50 Patrtck's Body Found.
W hiie the CORK men engs yei IN the renovation
n - n.ft of = n. HI.