The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1867-10-23
m-sUBsTITUTIoN cf enERNpAcKs FOR NATIONAL
BANK NOTES.

s paving eighteen millions annually the Golfers
to the people by substitution Of greenbaok currency
i6e greenbscE or Treasury note system permanently
astt1e1 upon ne county regard thS Issue by The
cnlaIing medium as an Anomaly in finance. 1t was
the lie OF the nation and like otner war Asures
should end with the return of prosperous peace II
or suddenly Withdrawn. but they should be gradually
and surely replaced with currency which is legti-
SecoHd-it was an important part Of the contract
when the latter surrendered their state charters that
should be entitled TO certain proportion OF cro la
lon. This was also the principal inducement offered
out this pledge OF SlTcnail09 lew 4 any oi the old
and IL would have been Impossible to establish the
national system at all. That circulation cannot now
tow ards The combined capital OF the nation-such a
tmld, cautious, and backward in its dealings with a
Government which would thus disregard its pledges,
However plaus bic the proposition may seem, the
pc pie cannot possibly be benea ed by any financial
measure which practically repudlates the contracts of
ngHiyIHi lis claim would be equally good against
any syst EN- Of banking, tor the actual point OF the
is that 20 long as there shall be national
debt Government ought to supply all the currency
old State Dank system were now ia exstence with
crrDiaiion there would be still stronger reasons why
the Government should force the sta banks TO re-
t re their circulating notes, and self supply the
needed currency. The pesple would, IN this supposed
cfse, save Just much Interest as they would now
save by retiring the national BANK notes Hence tue
aP for the PRESENT eTcelsst system be- destroyed
IL would be Impossible to origlnate another which
cusively greenback currency be adopted. of course
national, having the privilege Of circulation.
to.Tth-But Il is not true that a,,, the Government
ary part OF that sum, by destroying the national
Sahk HGG 6 place OF
This fact which shall soon substanIiate, indicates
how little this subject is Understood by those who
most persistent in their attacks upon the present sys
II is not question whether the Government ought.
or ought not pay to the banks the interest the
Washington to their circulating notes. These
SGg capital Of Who 5ave thus
united their meaps In a legtimate busness-1and no
Interest would have to be paid all the same. The
rest on the United States bonds they have bought and
paid for the farmer. the mechanic and the
1t being plain, then, that the Government confers
them interest on the United States bonds they hold,
IT. becomes Necessary to look further for the
hear complaint. My statement made above being
OF circulating notes, which amount they loan their
thus reality receiving double interest on single
Ne ,, OF three hundred millions of dollars
ment may just ts well supply this three hundred mill
equal amount o. United states bonds, thus saving to
the people the eighteen millions Of annual interest,"
this showing the banks stand charged with eighteen
latng notes. which amount, If It really be received
ana 10 equiXalent be rendered by the banks Is vir-
national banks. The interest on &c vernmen bonds
il such there be. cohneced exctnsiv ely wit6 Tie
But rely the national banks do not receive any
hundred millions OF circulation. What they do re-
ceye the following facts. which are accessible to ALL
The very law which authorizes the national banks
peis them to keep constantly In their vaults
cIIies and ditsen peT Cent in the couptryS OF the
amount Of that circulation as q reserve. Here are
lying idle in bank the year round and the amount
10 two hundred and forty millions 80 ''0''''N
Again, the same law requires and compe3 the banks
five per cent IN cities and feen in the country of
the average amount ofther deposits both public and
| privaie and this reserve must be in lawful money
The average total OF deposits during the last year was
iegaltender notes Were carried by the ban ks during
amount OF circulating notes received from the GOV.
| erhment py the Danks: rms deducted IRON the
circulation available to the backs as the result of
ment on this question of circulation. Six per cent in
terest on Sl26OJ0 600 Is T56OCOO. This latter amount
can derive from their circulation so long as the Gov
ernmept has legal tenders which 1t wishes to have
some may object to my thus coupling the reserve
required TO be held for deposits with the reserve for
circulation. This objection might have some weight
the EeTe not Itself Protng by the
of which are carried by the national banks with the
Of cir own Hptes Thus this amount o':iS Of s4o i
Is a fair deduction from the circulation which the
A.. But ot there SIN remains an apparent profit of
| sldy? '
| First-They pay to the National Treasury one per
cent. per annum (Oneb of one per cent semannu-
! ally on the whole amount of their circulation say
| S3I00OOO. ~"
Second-They pay to the Nat ionaI Treasury one
amount of their deposits which as the deposits last
year averaged s57l 200 900, amounts to S. OOO
90 Iht'd-Ihey pay national tax on their capital
STOCK, over ana ABOVE that invested in government
bonds which tax last year amounted TO SlOOO0O,
CThe above three required by section Al of
| the amended National Currency actO
toUrh-Ihey pay tax of one-half of one per cent
Pi per nnhun @ on, on the net amount Of dividends aud
! amount carried 10 surplus fund, which tax for the
past year amounted to 1880 900 WA iO' 'no
hVh-dhey pay license tax of two dollars on eVery
national bank capital last reported is sil4 00O o6o
! ana me license tax on this is S9lSOOO, ~''''
Nlne nNebuIns ABOVE named amounting to Al
paid by the banks directly into the nation M ie
| sury, ana they alone exceed the amount charged
against the banks profits on their circuaJion nv
TWO millions eight hundred and forty.thfee tho1sa5d
| dollars (S2 S43,UOn)
| Sird-in addition to the above items of national
taxation The banks paid during the past fiscal wear
State and local taxation, as shown by returns 10 ihe
| Comptrollers department., amounting TO about eight
Thus have shown that ia the items Of State and
| national taxation the national banks are annually
lars more than they annually receive In the way of
interest on their circulation.
The public viii notice that none OF these facts have
been referred TO by those who have UNDER
| taken TO discTedlt the national banking system.
| IL Is true that the National Bank notes are all
printed at the expense Of the Government, for the
| oouole purpose OF securing uniformity and OF pre-.
| Purposely lett out OF the above list many items
which might Otherwise have added materially to the
aggIegaie paid by The banks TO the Government for
lhe privilege OF theiI existence. One OF the most i'm
poTtant OF these Items which have omitted is the
gIhultous services OF the banks In receiving trans
| mlttlng, and disburslng the Government revenues.
! Ihe depository banks have, during the past year,
IansieFIea TO the Iessnry from ali parts OF the
per ent or II without any cost the Government.