Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1867-10-31
Judge Chase. Jay Cooke. and the
National Hanks.

Judge Chase. Jay Cooke. and the
National Banks.
JAY, COOKE, Judge CHAsE's financial
stool pigeon, that swallowed several mil
lions of greenbacks, whilst engaged as
decoy for the green financiers of Wall street
and other commercial centers of the Uni
ted States, has, with the assistance of his
preceptor, done what they deem very
clever thing for the people by manufactur-
ing, or causing to be manufactured, num-
Der of questions in regard to the National
Banks, and also very elaborate reply there
to, thereby fully Gni the opinion of the
authors) demonstrating the utility, splen-
DOR. and indestructibility of the present
National banking system. f-aR
JAY Cooke is a disinterested patriot; one
Of those ''who furnished the Government
the funds to carry on the war;" One who
sacrificed his valuable time, and endan
gered his precious life for long, long years
for the paltry sum of a few millions.
He sacrificed and gave up lucrative
clerkship, and became the slave of bis
country at time when he priced his free
dom most, and now, after all this, it is pro-
posed to tear up the grand system he and
his master created. 49,. -. .'.....,t
| We have, read JAYS letter with much
care, and the comments of the press since
its appearance, and are yet unable to COM
prehend the .beauties of the system.",.
The argument that bank note that is
redeemable with greenback is better than
the greenback is "a new idea," and worthy
of consideration. c. But. it. is apparently
solved by the determination of the vexed
question by Western debating society,
(which is of the most value, dog or his
hide?"
The high encomium paid himself and
associate bankers by Mr.. COOKE will be duly
appreciated by the people, and doubtless
the only regret will be that they aoere not
better paid, Especially Mr.. CooKE.)
Mr.. Cooke argues that all those who OPP
pose the system, do SO from ignorance.
Well, this is quite modest, and will also be
duly appreciated by people from whom
he has purloined millions.
But the gist of the letter appears to be
to demonstrate that these Banks are really
paying Cooke all or nearly all of the inter-
est paid to them upon the deposited bonds.
He says: f.r. .--
a. But it is not true that the Government
would annually save eighteen millions of
dollars, or any part of that sum, by destroy
ing the National Banking system, and is
suing greenbacks in place of the National
Bank currency now in circulation.
And then attempts to fortify this posi-
tion with facts and figures. -...sf.
But waving the controversy upon those
facts and figures, we call the attention OF
Mr.. COOKE to this very simple calculation
to see if the Banks receive no special fauors
from the Government.
He admits that the banks draw 6 per cent.
interest upon $500, 100000 bonds, being
$lS,000,OOO of interest.
Suppose ten individuals organize one of
these National Banks upon a capital of
100000. Now they have only $1,000 each,
amounting in the aggregate to $4,000.
How can they manage to organize the
bank with 100000 capital? Well, suppose
they borrow $4,000 for a few days, this
makes up the 500 600 for the purchase of
the bonds. So soon as the bonds are pur-
chased and deposited, they receive 100000
notes for circulation. Now they return
and pay off the $4,000 debt, and have $780,
900 of reserve "a little more than the
law requires).
Then these ten gentlemen have bank
of 100000 capital, and only $4,000
invested. They can stop here, and what is
the result? .e-
Six per cent interes. on s1oo 900 bonds 900 90
One per cent tax on $50 600 rculation.-. 800 90
Profit on the $50. COO investment in one
year. and no business transacted s., 100 90
Or seventeen per cent. per annum upon
the investment.
This reduces the matter to its simplest,
and least profit able form.
The system is. thereto. e, a syst tenn to en-
able privileged few to loan money at
seventeen per cent, and if they see proper
to engage in banking the means to add at
least an equal sum by way of profits.
The banks, like the party that originated
them, are upon their last legs, and it will
require more profound mathematician
than JAY COOKE or SALMON P. CHASE, to
convince the people of the splendor, utility
and indestructibility OF the institution.
The people are settling up the financial
affairs of this Government, and the Ma
.ional Banks must be ready to render an
account, square the books, and engage in a
more wholesome business.