The Democratic advocate., 1872-01-27

return for Il Its face value in money, trade, or
credit, which Il. can use 10 bis proft, II Is
clear that BIS profit Is at AS expense. A.
has taken an obligation from B. which yields
ne profit to tho taker, and By so doing has
enabled X. 10 realize a profit Just this 4
what every person who takes bank note does.
lie gives value, either directly or indirectly,
to the bank, upon which il can realize profit,
and takes In return an obligation OF the bank
which yields no profit 90 him. The people,
then, are the lenders TO the banks, lepders
without interest OF the whole amount OF the
eauk circulation Of the country. But, Il may
be objected, no one feels this burden no ones
profits are Pereeptibly diminished by IL, and
therefore no real harm is done. These facts,
50 fat from being palliation, are but an ag-
gravaiiOn Of the evil. Selfin,erest may be
trusted TO impel men To resist unjust taxation
which Is plain to be seen Uf all men, but the
enemy to be feared is the one that comes, like
the vampire, In the dark, and sAPs the victims
liie-blood without bis knowledge. How great
tax upon the industries Of the country the
bank circulation Is, may be realized when II Is
stated that, according to the report Of the
Comptroller Of the Currency for lsIO,-an
authority oy no means hostile to the banks
the average profit derived by national banks
from their circulation is per CT per annun,
Five per CT on three hundred and twenty six
and one-haN million dollars-aboat the pres
ent amount Of national currency outstanding
lis sixteen million three hundred and twen-
ty-dye thousand dollars. This, then, Is the
rihing tax wh ch the pooplo Of this country
pay for the maintenance Of the national bank
ing system. Sixteen aud oUe-third millions
taken each year from the hard earned profits
Of the people and transferred to the Golfers OF
the banksl Let no one then delude himself
With the idea that no harm is done by the tar.
The diversion Of sixteen aud a third millions
OF dollars every year from its proper channel
cannot fail 10 work serious injury to the indus
trial Interests Of the country. So great an
amount annually deducted from the earnings
Of labor and legitimate trade, and added to
the profits Of capitalists, however slight It's
apparent effect upon each Individual NAY be,
must inevitably, in Its aggregate result, be
vastly detrimental to the true interests Of the
eoun,ry. For il must be borne in mind that
the profits Of one class Of the community can
not be unduly aud unnaturally augmented
without corresponding decrease Of the prof
It's or the capital OF the remainder of the eom-
munity. The productions OF the country have
a certain value, out Of which the wages and
PROFITS Of all members and classes Of the com
munity must be paid. No class can appropri-
ate to itself more than its share of that value
without injury % other classes. Any system
which unduly adds to the profits Of the capi-
talist subtraets an equal amount from the
earnings Of the producer and the laborer.
In regard to the profits of National Banks,
the same writer says:
The only informatio D, other than that con-
tanned In the archives Of the Department at
Washington, which Is possessed concerning
these reports Of dividends and net earnings Il
embodied in a report made by the Comptroller
to the House Of Representatives on the 2aud OF
January, 1870, in compliance with a resoiu-
tion OF that body, passed December n, 1863.
II shafflA k.,k kuraa Ia, ufad III. 81.
was not a profitable year for most business
operations. The course of the price of gold
throughout the year was steadily downward
and with that Of gold sank also the prices Of
most commodities and kinds OF property. The
remarks concerning the year 1870 contained
in the report of the Comptroller Of the Cur
rency for that year apply with at least equal
force 10 the year 1863. "The profits" [of Nat.
ional Banks, be says, "have not been so large
as in former years, owing to various causes
among which may be noted the decline in the
premium on gold, reduction in the AMOUNT
OF transactions In government bonds, and con-
scqaent falling OF IN commissions, and the
fact that, owing to the general shrinkage Of
values which has taken plaee, the banks gen
orally have realized their losses and charged
OF the bulk OF their bad debts" And vet,
notwithstanding these disadvantageous condi.
tons. the average per cenlage, OF clear prof
its, including dividends and net earnings In
excess of dividends, for the first dividend peri-
cd OF six months embraced in the Comptrol-
ler's report to the House Of Representatives.
was six and eighty-eight one-huudredths. and
for the seeond period six and seventy-fye
one-hundredths, making an aggregate ne,
proht Tor the year, clear OF all taxes, expenses,
losses, and abatements whatever, Of thirteen
and sixty-three oBe-hundredlhs per centum.
When II is remembered that this Is the aver.
age rate of net profits Of all the national banks
which pay any dividends at all during the
year, inclading those unfavorably situated or
badly managed, and those which had sustain
ed losses through either mismau cement or
dishonesty, the prohtableuess of the national
banking system will be clearly realized. IL ia
doubtful whether there is any business pur-
sued within the. United States, not favored by
special legislation or attended with exception
al risk, danger, or disrepute, whose average
net profits are SO great as those indicated by
these hgures. Instances may doubtless be
poinSed OFT where certain individuals or sets
OF indiyinua.., in the pursuit Of some business
not belonging 10 the classes which we have
excepted, have realized higher profits; but il
would be found that when their profits had
been averaged with those of the same business
throughout the United States, they would fall
much below those of national banks. So
far from finding the result. that might have
been expected, under a natural and healthy
condition OF the business, we perceive that lis
prohts are nearly, II not quite, double the nv.
erage legal interest on money. aud more than
double the interest on United States stocks.
II simple farmer or tradesman becomes the
possess0r OF Few hundred surplus dollars
which he wishes to loan on real estate or in
any other manner, the usury laws of most of
the States, and usually the inexorable natural
laws OF trade also, limit the interest which he
may receive to six or seven per cent. per an
NUM- while the wealthy capitalist who has
been 50 fortunate as To invest in national bank
stock may rely upon an income from the in.
vestment OF nearly double those rates. Such
discrimination In favor Of inves ments in A
particular kind OF corporate capital, if it can
be traced to the door Of legislati N. Is emf
nently unjust. Giving, as it does, an undue
and unmsrited share OF the aggregate profits
Of the community TO a favored portion Of lis
members, It impairs in an equal degree the
profits OF the remainder. Such an effect is
baneful to the last degree. IL becomes impor.
tant, then, to ascertain 10 what causes the
enormous profits OF the national banking sys-
TEN are due, so that, if they lie within The
province Of legislation, they may be corrected.
Here now Is matter for reflection for work
ing men, producers and laborers. Let them
find out what party fosters and sustains this
banking monopoly, and in the exercise Of their
suifrages discriminate In fasor Of the eandi.
dates Of that party W hich has always warred
against monopolies In every form and legisla-
ted for the benefit of the whole peopie-not in
the interest Of party favorites and thu building
up Of monied aristOcraey as has been the Gus
tom Of the opponents Of Democracy. Dsla1a-
rsan.