Green-Mountain freeman. [volume] (Montpelier, Vt.) 1844-1884, 1868-01-01
National! EsalliS.

EXTRACT FROM M MORRILL, >rtE,H.
Below We print an extract from the recent
speech Of Senator Morrill, CA the finance
There is Il hue and cry, as Inalcyolent as it
is ignorant, about the loss 10 the Govern
ment by permitting these rationa. banks to
issue bills for circulation while the Govern
ment pays interest upon thcbonds deposited
which the last report of the Comptroller 81
the Currency ought To shame into silence.
At the risk Of being tedious | will give a
brief extract from Mr.. Hubbard S repoIi
The national banks are compelled ly law
to hold constantly in reserve a certain pcr
centage Of their circulation and deposits in
United States legal-tender notes. The amount
thus held permanently inreservc * never
less than $50 900 900, generally about
SlS0, 900 ,0O0,) and is a gIi.tuitous loan II
the Government. The banks get no interest
on it, 1t is SO much Of theis capital unpro-
ductive, invested in Misunderstanding
notes Of the Government.
- The may be stated thus
- The banks have loaned to the Govern
ment as follows
For bonds deposited to sccurethcir circulation
bearing six per cent.
interest, $50 5000 Gee
Bearing five per cent. 20 Gee ,00(
Perm mt reserve illegal tenders. 100 900 O0G
Total loan To the L. :, 500 900 ,OOt
- For which they receive
Six per cent. interest on
$3.50, 900 900, SD -tUU.oUt
Five per cent. interest OH
500 600 geo. ! 800 coo
Total 10. 300 ,O0t
But they refund for taxes. 10000 ,Uot
Leaving. 50 BOT. 0Uc
which the Government pays the banks for {;
/ loan of $3.50 900 ,000-a little less chan
three fourths of one per cent.
s." But there is still another inspect Of TIL.
case
:. The banks are held rigidiy accountable
for the interest they receive on money hon
/ estly loaned to the Government when il
needed money, and they clam credit for th'
money loaned to the Government without
interest. They hold these $50 900 600 il
obedience to the mandates of the law, whil'
money is worth to them six per cent. They
therefore give the Government the use OF I'll,
money that il to say
I Six per cent. on $3.50, 900 900 non interest
United States notes held permanently ii
reserve, 50 600 ,G0t
They pay in the shape of taxes, iG 600 cot
Total, - .000 oct
They receive interest from the
Government. ~ 800 .UU'
Leaving -, 500, 90,
which the banks actually pay bonus t
the Government for the privilege Of circulat
ing their own notes The fact should not b.
overlooked, in this connection, that til
banks have deposited $40 ,0G0. 900 with tn
/ Treasurer security for their issues Now
the United States could not possibly buy owe
three hundred millions Of these bonds with
out an actual addition Of thirty or forty mil
lions of greenbacks to the amount it is pro
posed to issue in lieu of three hundred mil
lions Of national bank notes The rosul
would he, either that the Government woul,
fail to save 81, AGO, 600 interest OH fort,
millions of its bonds which ii could not pur
chase, or it would have to try the Dangerous
and unnecessary experiment Of again lniat
! ny the currency
/ There is but qualification which seem
proper to Inc TO make to this statement @
the amount which the banks pay in TIN
shape of taxes 81 ,949. 45l have been paid t,
the states, and this. perhaps, should not b,
! included in the s 900 600 credited to then
by the Comptroller. But even with tbi.
amendment the Government cannot b.
charged with any favor to the banks (aftel
deducting Mr.. Hulburd's 81, 800 ,O00 which
he thinks is a bonus actually paid by the
banks to the Government, from the 80. 600
Coz of state taxes paid) beyond the sum o
81, $50 900, and that the banks rendered Z
full and generous equivalent for this SUN In
their services to the public IN the reduction
| of the prices Of exchange and to the Govern.
rnent in the collection. transmission. ana dis