The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1868-08-07

i
The great bulk of United State,
bonds are owned and held by indi-
viduals, as private Investments
Only $34O, 900, 900, out of $4,000
900, 900, are owned by the nationa
banks. Some other millions may
be owned by private banking as.
sociations, as an investment fol
their capital but altogether only
q small proportion Of the bonds arc
employed as the basis Of banking.
By far the greater part are owned
by private capitalists ), are locked
up and sometimes left unlocked
in the vaults Of Wall street; arc
packed away in prinate safes, and
50 on. A single capitalist in Chi.
eagu--Mr. L. H. Hadduck-is re.
ported to have no less than $780,.
600 Of government fve-twenties
slowed away in corner -of his
strong box.
The reason why the bonds should
be sought for and held by private
capitalists is obvious. They yield
a revenue of six per cent, in gold,
and arc exempt from all taxation.
Mr.. Hudduck. on his $400, 900 OF
government bonds, realizes an an
ual income Of $4,000 in gold,
$33, 900 in money,-and pays only
an income tax Of 81, $50, or. if he
returns his income at its money
value, as he ought to do of 81, $50.
Four Illinois farmers, whose aggrc-
gate wealth in lands, cattle, &c.
is only equal to Mr. Hudduck' 8
wealth in bonds, pay an aggregate
income tax of 81, SOC, and an aggre-
gate annual tax for other purposes
Of $9,799 81. This is what the
farmer, and mechanic, and laborcr
are compelled to pay MIR. Hadduck
for putting his money in government
bonds, instead of investing it in a
way that would contribute to the
production of public wealth, and to
til. alienation of tho public burdens.
But let us also see how the .Jaco-
bin plan operates as to the bond
holder who engages in the business
of banking.
Twenty capitalists agree to start
a national bank, each subscribing
the amount Of $25, 600, which is in
vested in government bonds. Upon
this capital stock Of $500. 900, the
governments authorizes the. bank to
issue 500, 900 Of circulating notes,
making 5000. 900 upon which the
bank will derive income. The bank
carries an ayerago amount Of depos-
its Of 81, 500, ,00O,s only onc,fourth
of which the law requires to be kept
in reserve. The other three. .fourt hs
81, l25, ,00O--added to the $780,
900 Of bonds and circulating notes,
make $2,025, 900 as the actual
amount of money with which this
bank does business and upon which
it receives the profits. The income
account Of these twenty banking
bondhol,lcrs will stand as follows !:
Capital employed. Income.
Bonds, ,S5oO, 900 5 $4,000
Notes, S4OO,O 900 10000
Dcpositcs, Sl,125 900 -f@ ll2.5OO
Total income 5 1874, 500
- Their account with the tax
gatherer. according to the figuring
of Jacobin newspaper concern,
will stand as follows
Tax on bonds ~-s none
On average circulation (S4O0, ,OOO),
at per esns----s~.- 1000
On average deposits Of 81 500, 900,
ut Id per cent ssssas 3D. $500
On capital stock, as license, 81 per
$1,000 1000
Personal property, state and county
on $45O, 600 1875
Personal property, city on $780,
600 5000
Total 4.... ---
s.S' W. .ss< S21,s75
TO which must be added the IN
come tax,--a tax which in this case
operates equally upon the banker
and the farmer, as does also the tax
on the bankers real estate, If ho
happen to own any,
The twenty bon6holders, in their
banking business, pay . tax of $21-
875 upon . business that yields
them an annual income Of $194, 500,
but ; whose a%s actual t. capital is only