The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-05-06

Inc declaration OF large dividends by several
Of the national banks, in addition to the large
amount carried to their surplus funds, shows
the enormous profits Of these establishments
The First National Bank Of New York, for ex-
ample, has just declared . regular seminar
nual dividend Of ten per cent, besides increas-
ing its surplus fund sixty-dve per cent All
the banks, in fact, that are managed with ordi-
nary ability and honesty, are making immense
profits out Of the public, which are altogether
out of proportion to those Of every other busi-
ness. We do not conclude that generally the
gains are as large g forty. afty. sixty ornore
per cent. which Some Of chem show; bst we
think we do net overesaiuAte tte aggregateat
twenty-five u. thirty Per cent The capital on
which dividends ara. paid - he stockholders
d over Sesr hundred and eighteen millisas. -
that We may fairly caicalate the total profits
for all the national banks oyer hundred
millions year. Probably they reach . hum
bred and twenty millions. While this exhibit
is extremely gratifying to the few favored CAPT
talists who hold the stock of The national bank
ing associations, the mass Of the people might
properly inquire whence these excessive profits
are derived, and whether they indicate .
healthful state Of things for the country at
large.
These profits Of hundred to Q hundred
and twenty millions are drawn, Of course, from
the productive interests Of the country, and 60
into the pockets of few, comparatively. It
may be said that capital has its rights and
privileges, the same as labor or skill in bust
ness, and that all have . right TO make the
most they can from their accumulated means
This is undoubtedly true a. general prin-
ciple and as regards individual action. But
in great national organizations or institutions,
in institutions which are legalized and fostered
by the government, there should be limit to
their power Of absorbing the products of in
dustry and the wealth Of people. The prin-
ciple Of restraining the grasping power Of
capital Is recognized everywhere. 1t 10 en-
bodied in usury laws and in laws prescribing
the rate Of interest on money. The general
welfare, as against special interests or privi-
leges, should be the object Of government
But in the case of the national banks what
do we sect We see gigantic monopoly over
shadowing the whole country, absorbing all
the profits Of industry and threatening to exer-
| else the most dangerous power both financially
and politically. II is far more dangerous than
the old United States Bank or any other
moneyed institution ever was We see the ma
tional banks not only legalized and supported
| by the government, but, strange to say, in
addition to the large profits which could be
made in the ordinary way of banking, and In
| the face of enormous dividends the govern
ment actually makes a positive gift to them oil
over twenty millions year. Besides giving
them the exclusive privilege Of banking, and
driving all other banks out Of existence for that
purpose, 1t gives them the profits of three hun
| dred millions Of circulation. The Bank Of Eng
land, with all Its services to the State was never
accorded anything like such privileges, and
was never permitted to make such immense
gains. Although that great establishment
manages the British national debt and acts az
| our Treasury Department does for the govern
ment besides coming to the rescue with it,
funds whenever the Chancellor fthe Exchequer
| Is In q tight place, the government takes two
thirds OF the profits Of its circulation not repre-
scnted by gold in its yaults-that is, Of the cir
culation represented BY interestbearing secu-
rites. The whole Of ne circulation Of the
national banks is represented by interestbear.
| ing bonds; yet they draw their interest and pay
nothing for the privilege Of circulating the
money Of the country. Never before was there
such favor conferred on capitalists or such q
| fraud upon the people. The whole organiza'
ton Is, a. we said, dangerous one and .
monstrous cheat upon the public; but il II Is "a
be continued let us at least save the twenty
millions year now given to the banks BY
substituting legal tenders for their notes, and
cancelling with these the three hundred mil
| lions Of The interestbearing bonds now depos
tied by them as security for their circulation
This is the least that heavily taxed people
could expect II would relieve our burdens
and help 70 pay the national debt while th'
banks would, as the exhibit Of their condition
shows, make plenty Of money without this ex
traordinary gratuity.