The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1870-04-27
Tho National Banks.

ton Of the permanency of the National
Bank system is definitely settled, IN
less the friends Of the hanks arouse
popular hostility against them by at
tempting to control legislation. The
advantages Of having a currency uni /
form in appearance and value, and sc
cured by national bonds, are too great
to be lightly estimated by a people |
who once endured the evils of wild |
cat" circulation. But while this is
true, it must be evident to every
thoughtful mind that Congress must |
adopt some rule by which the bank
ing privilege will be free to all who
may desire to engage in that business.
To limit the number Of banks, and
thereby make of that interest mon
opoly, will always arouse jealousy on
the part of a majority Of the peo-
pie, and cause them to overlook the
great advantages Of tie system, In
their hostility to what they regard as
its exclusive or oppressive features.
1t is evident that no popular cry is so
potent in this country as that Of
down with monopolies.n Its heard
in every canvass, and It's effect upon
the minimizing - those who are
guided solely by their passions and
prejudiees in casting their votes--is
often disastrous to the prosperity of
the very men who are most Influenced
I4by it.
Competition is the life Of trade, is
an adage both tritc and truthful. 1t
can be pplied as well in banking as
in any other department Of commerce.
1t seems to be absolutely essential 10
commercial health, as motion is to
the preservation Of the purity Of wa
ter. This great law of trade must be
recognized in every department Of
life and the government that disre-
CARDS il, will soon find itself repudia-
ted by The people, especially if that
government be based upon the con-
sent of the governed.
The Post demonstrates very con
clusively tha5 there is not natural
competition IN banking 1t does SO
by the publication of the following
| figures:
There are in the four principal
cities of the East one hundred aud
foriysix National Banks. OF these.
ffty-four are in New York. They
have a capital of $73,219,000. Their
net profits fer the year 1869 were $26, :
3S8,70S, or 26 per cent. on capital.
In Boston, the number of banks is
forty nine, and they have a capital of
$4S. 100000. Their net profits during
1889 were, $13 567 ,466, or 285 per
cent The thirty National Banks of
| Philadelphia, have q capital of &c.
555, $50. Their net profits during the
yearwere $7,480,894, or 45 Is per
cent. In Baltimore there are thir-
| teen banks, with a capital of SIC, 39l,-
985. Their net profits in 1869 were
81, 322, 237, or 225 per cent. Thus
these 146 banks, with a capital of
$l48.765 ,135, made annual profits of
9,759. 305, being 33.44 per cent. on
the capital, or more than five times
the usual rate of interest allowed by
| law on money loaned.
Nor is the excessive proGtableness
Of the business of National Banks
confined TO the principal cities of the
East. 1t is but trifle less, counting
all tho banks of the country. The
abstract of returns of the National
Banks for January, 1870, shows that
the profits are increasing, and are suf-
| fieient to satisfy any reasonable am
bilon. AS compared with a similar
| abstract for January, 1S67-a time
when general repose, after the long
war of the rebellion, had brought
| business to something like normal
cenditIon-the capital of the banks
had increased (though their number
had diminished) from $419,000,000 to
1926, 900, 900. But the ratio of increase
in net profits was greater than this,
being $86, 100000, as. shown by the
abstract for January, 1867, and STA
! 100000, as shown by that OF January,
1870, or from about II to 20 per cent.
| Thus are the net profits of the Ma
tional Banks for the whole country
nearly five times as great as the rate
Of interest ordinarily allowed by law.
So long as the profits Of the banks
reach the figures above given, and are
so largely in excess of the profits of
nearly every other department of com
merce, will the banks be looked
upon with jealous and hostile eyes.
Demagogues who are always ready to
seize upon the discomfort and dissat-
isfaction of the people. to advance
their personal ends, will successfully
seek to fan their jealousy into a fame
that may occasion wide spread dis.
aster and ruin, involving the destruc-
ton Of the whole national bank sys-
tenn. But a wise recognition and
amendment of the Objectionable fea-
ture of the system-so that it can not
in any sense be stigmatized as mo-
nopoly-will so fasten it in the conf
dence Of the people, that lis perpetui-
ty may be eo.extonsive with that of
the Government itself. -.
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The State GeOlOgIst.
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