The Fremont weekly journal. [volume] (Fremont, Sandusky County, Ohio) 1867-1877, 1871-09-01


that they have found their business under the
law sufficiently remunerative, so that we owe |
them nothing. But 1 recognizes the fact that |
they have been OF great service to the country
ard in more ways than one. If no other good
had resulted from their establishment than the
destruction of the old State bank and wild cat
system, and the creation of safe and uniform
currency, it would be sufficient; but there has
been much else. 1t is, therefore, only fair
that we should not misrepresent them, and I
refer to them now only to correct what I re-
gard as misstatemeuts made by Governor
Ewing. He says. "If we would now substi-
tute gTeenbacks for National Bank notes we
would save Sl7,200, 900 in greenbacks annual
ly. This IS exactly the sum this circulation
privilege given the banks now costs the peo-
pie yearly, after crediting the one per cent.
tax paid on circulation. Mr.. Sherman i'm
picitly denied this fact, asserting that the
banks pay other large taxes, State and nation
al. But the fact is, that with the sole excep-
ton of the tax on circulation, there is not one
tax levied by the General or local Govern
ment on banks or their stockholders which
does not fall on National and private banks
alike, or which would not be paid, If the Ma
tional Bank circulation were substituted by
greenbacks." Now happen to know that,
practically, what General Ewing states is in
correct. For instance: Side by side in the
city of Cincinnati are a national and private
bank, both employing large capital, both do
ing an excessive business, and both highly re-
putable. The National Bank pays the follow
ing taxes, namely: One per cent on circula-
ton, one-fifth of one per cent fer license two
and half per tent. on income, one-halt per
cent. on deposits, and three and slxteen-hund-
redths per cent. on its entire capital and sur
plus fund for State, county and municipal pur-
poses-in all five and sixty-seven hundredths
per cent. And there is no way to evade this,
or any portion of it, as sworn statements have
to be made under the law quarterly and IN de-
tail Now the private banking house invests
its capital in Government bonds, deposits lts
bonds with a New York firm, and draws
against such deposits as money is needed. AS
/ the whole capital remains invested In bonds
during the year, no tax whatever Is paid on
circulation, or for State, county and manlclpal
purposes. 1t is absolutely lost to US for tax
alton. Yet General. Ewing says there Is no
difference except as TO the one per cent on
circulation.
Again, the same National Bank 1 have
| spoken OF does business on Third street in Gin
cinnati, in building owned by one of our
wealthy citizens. The re2t of the building
amounts to $1,000 per year. One Of the
stockholders of the bank owns stock which
| Yields him an income of $1,000 annually.
4 L
is equal. And yet the owner Of the real es-
tate pays tax of 1887 per annum, and the
owner of the bank stock S3,476-the latter pay
ing on the entire value of his investment, and
the former only on a small portion. And il
will also be remembered that while the Ma
| tional Banks pay tax on their capital, the old
State Banks formerly paid only on profits.
And, my friends, is it true that the govern.
ment pays $l7, 7,2S0,000 annually for nothingi
1 have shown that large portion of this SUN
returns in the shape of taxation. The banks
are moreover, responsible and accommodating
agents to dispose of the United States bonds
and are themselves heavy purchasers of the
bonds. In the next place, by furnishing 9
currency which, under the policy of the Re.
publican party, has been rapidly approximate
ing to the value of gold, the worlds standard
supplies for the army and navy and for public
works at much lower prices than could pos
sibIy prevail under the greenback imitation
system. And, finally, the people are vastly
] benefited in the reduced prices for which all
the necessaries and comforts of life may be
purchased. The. National Bank system gives
us q uniform currency, and best of all, is abso-
lutely safe The banks deposit 100000 Of
bonds at par, which are worth premium Of
| twelve to fifteen per cent, and get in return
only $4,000 circulation, and so on in proper
ton. BY purchasing and disposing of United
States bonds in such large amounts, the banks
have kept up the credit of the country abroad
and have made it possible to lower our rates
of interest on che public debt. 1t is now ap-
parent that no distant day further reduction
can be made.