The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-06-11

annually, the sum Of $l7, ,67l $50 in gold
being at the rate of tride lcs than 6fiy
per cent gold interest. annually. for cur
rency loan, or considerably over 6Ay pei
cent il the interest ID paid also in currency
/ wish to be exact in this matter, and
will, therefore, restats the scheme, 80 thai
there can be no shadow OF doubt MS to il,
character. The ninth section Of the Fund
ing bill provides tbat Tho Nasiooal Banks
may have given them, i'm addiaion to thu
$500, ,eOO, 900 already received. the sum O
1857 .OO7, ,22l. that being the sum O. na
tional greenback currency outstanding nc
cording to Mr.. Secretary Boutwelrs last
monthly debt statement The terms Of thi'
municent gift are ID follows:
The banks pay into the United
States Treasury to secure circu-
lstion, currency. .*357 COZ, 22l
Ten per cent addi ional. 3s,7OO. az
TOTAL currency payment .Ssse, ,7O7, ,sss
The banks receive from the Tres. 49, q
ury for circulation. in currency &aJ7. .OO7 ,22l
Balance rsmaising in fseasury.S 81, 200, ,771
New, as the banks are 10 pay into the
Treasury for bonds to secure circulation the
sum Of 1892, ,7O7 .993 in currency, and re-
ceive in return for circulation the sum Of
1857 Oct ,22l in currency, the amount re-
naming, $35, 5,7oO,772, is the sum really
loaned to the United States, and for which
the National Banks are to receive United
States bends to the amount Of $392, ,7O7,-
993, that are to draw $17, ,67l ,859 in gold
interest annually from the taxpayers
Treasury. f r-.
THE WITNESS STAND.
These National Bank swindles are ab.
sclutely astounding, almost beyond belief
i wish to be very careful not to misrepre
sent the matter, and to prove the truth Of
my statements, | bring Q number Of dis
tinguished witnesses, among them one Of
the most thorough going lawyers 10 the
Union. In his celebrated National Bank
speech, General B. F. Butler gave the fol
lowing graphic account Of the system
Let me state tn. way National Bank got
itself existence in New England. A c5mpany
OF men got together $SOO, 900 in National Bank
bills, and went % the Regi ter Of the Treasury
and bought United States 6se-twensy hoads 1t
par They stepped into th. ofice Of the Comp
troller Of the Currencv and asked to BE- estab
lisbed 40 National Bank, aud received from
him el7O,0OO in currency, without interest,
upon pledging these bonds OF the United States
they had JUST bought wish their $500 900 Of the
same kind Of money. Now let us bal lnce the
books. and how DIES the aceou q stand ? Why
the URissd States Government r. ceiv>s $50,
coo In National Bank bills more ON the
banks than it gave them in hills in other
words, it bOr0~e Of the ,Hk $50, 900 10 cur
rency, for which. in fact, it paid $4,000 {
year in gold interest for the use of this $50 900
Let me repeat fhe difference between vhst
the United States received and paid out was
orly $50, 900, and for the use If that, the Gov
eminent pay on the bonds dep Dsited BY the
company, bought with the same kind of money
SIS, 900 year interest in gold And this Is
the system which is to be fastened forever on
the country as a means Of furnishing a circu-
lating medium --
This, only using round numbers for the
purpose Of illustration, is an actual aud not a
feigned Occurrences"
The speeches of Gongrcssmen William
s. Holman, Thaddeus Stevens, 8. f. Cary
w fiii.m d. Kelley, E~ses Barnes, and
others, contain similar illustrations Of The
National Bank system and its workings
The bank mentioned by General Butle
to illustrate the system has six per cen
gold bonds for basis. The banks pro
vided for in the bills, now pending in Con
gress will have four and half per cen
gold bonds for basis. This accounts fol
small difference in the profits of the two
classes.
UNITED STATES DESIGNATED DEPOSITORY
NATIONAL RANKS.
In the above / have correctly described
the operations Of the system asit affects
the National Banks. There are, however,
few of those eleemsynary institutions
that are still further favored. allude to
the United States DESIGNATED depository
National Banks.
Hon. John A. Peters, director Of Ma
tional Bank at Bangor, Me-, undertook by
bit Of special pleading in the debate on
the floor Of the House Of Representatives,
last Saturday, to show that the depository
banks were having hard time. He said !:
"As director Of National Bsnk situated
in the city of Bangor, place containing 90
600 inha bitants, "a bank whose Situation is q
very fair illustration of that Of the country
banks generally which are depositories).
know it is very doubtful whether the holding
of these public funds on deposit is farthing's
advantage to the banks. know that the
banks like to have them. know they like tie
name Of being designated as public depos rories.
| know that the bank with which have Ceen
associated, and other banks, have made very
little use of these Government funds, because
they must be ready to pay over without notice
the Ia st farthing belonging to the Govern
ment."
THEORY VS.. PRACTICE.
The alleged uncertainty Of these deposits,
as represented by Mr.. Director Peters, ex-
lists in theory only. There has been a
steady United States deposit in the desig-
mated depository National Banks Of not
less than SIS, 200. 900 on an average dur
ing every minute of the last four years.
In May, 1867, the amount was $23, 1885,
908. Same month of present year, $11,-
202,647. Take the present desposit and
examine both sides of the transaction and
see how it works. The designated Ma,
tional Banks have now deposited in the
United States Treasury, to secure Govern
ment deposits, $l6, ,263, 500 in gold bear
ing bonds, upon which they receive 1885,
$40 per annum, in gold, for interest The
United States has now deposited in the
designated National Banks s11, ,202,64
upon which it receives no interest.
Deduct the lesser from the greater and
you find that in this deposit account there
is balance Of $1,000, ,S53 in currency, in
favor Of the designated National Banks,
and that they receive $975,81O interest
annually, in gold, from the taxpayers
Treasury.
Stripped Of all financial subterfuge, this
United States deposit account stands, in
round numbers, as follows The des
iguated National Banks deposit with th.