Raftsman's journal. [volume] (Clearfield, Pa.) 1854-1948, 1868-09-02
The National Banks.

The National banks pay total tax OF
from four to seven per cent. upon their cap
tai. This tax yielded last year an aggregate
of nearly twenty millions of dollars.
The National banks are at this moment
lending to the Federal government perma-
nen,ly four hundred and ninety millions OF
dollars at three fourths of one per cent, IN
terest yearly.
The National banks are paying five and
half millions into the Federal treasury as
bonus for the privilege of circulating their
own notes.
The Democracy propose to abolish this
state of things, By making war upon the
banks. by Increasing their taxes they would
tax then, out of existence. The very high
est financial authority predicts that they
would wind up and either reorganizs under
State laws, do business as private bankers,
or put their money into other employments
Discounts would be suspended, accomoda-
tions would cease, and commercial and pop
ular distress would follow. And all this Is
what the Democracy intend to accomplish
by their plausible propositions to substitute
non-interest- bearing notes for the $3.50, ,OOO,-
600 o. interest-be bearing bonds at present held
in the Treasury as security for the National
Bank circulation la fact. the country
would not save dollar, but would lose all
/ of the present taxation, except what 1t
might afterwards reach in the private In
comes of the bankers, and it would no long
/ er have the use of the S490, 600, 600 for less
/ than one per cent annual interest.
When Democratic orator tells you that
the people are paying to the banks bonus
/ of sixteen millions of dollars which might
/ be saved. tell him that this fact is otherwise
/ that the banks are themselves paying to the
/ people five and half millions, as bonus
! out of pocket, for the privilege of circula-
/ ton and that he would do well to post him
/ self up before undertaking the responsibility
/ of political or financial insurrection.
! The rlth is that this Democratic scheme
| to save tie eighteen millions Of interest on
the bonds deposited by the banks, must re-
/ suit, as above shown and can be proved, In
/ loss instead of a gain 10 the Treasury, Is
only one plank in their infamous design to
! repudiate the bonded debt of the nation.
/ They hate it, because it is debt incurre d
/ in the defence of the Union, and to maintain
| the integrity of the Federal power. How
truly a high financial officer under President
! johnson has described this Democratic
/ scheme, and what an eloquent tribute he
pays to the simple and sturdy honesty of the
/ American people Read:
! The effort seems to have been to find
| out how the Government can avoid meeting
1 its obligations according to their tenor. 1t
/ is not suggested that the United States is
! not able to pay its debts to the last dollar
I Yet there is a strong propensity manifested
| irom time TO time through the press and
/ otherwise. to evade the payment of the full
/ volume Of our Indebtedness as a nation, by
| some quibble of sophistry to Justify action
| that would not be tolerated as between hon
eorable men. The American people have
not been accustomed to the burdens of a
| public debt, and are naturally restless under
/ heavy taxation. They are not practiced in
/ the study Of financial problems, and may,
for time be mis- ed by the subtIeties in
volved IN this easy method of paying their
debts Blu: they have simple and sturdy
notions of honor and honesty and good faith,
/ and will not knowingly aid and ahet any
/ scheme that would tarnish the national
credit. They realize perhaps more fully than
! protessed financiers, the yital i'm portance oi
/ acting up to the highest standard of nationa
/ good faith. ,"