, 1873-08-20


by giving station-mastora tho authority to hold
trana until thoy ore explicitly instructed to dis
patch them?
THE BANKS AND THE ORANGES.
Nearly all tho Grangea arc resolving to abolish
tho National Banks. Thoae institutions are de-
nouncod as monopolies (Which in ono Honeo thoy
aro), and as oxtortionists, which they certainly
aro not. To tho extent that they have tho OK
elusive right to Issue notes to circulate Ne money
thoy aro mouopolos. but in no other sense.
Their principal function is to receive and
lend tho surplus cnpital Of the country,
olarging gonerally tho legal ratio Of In"
torost to borrowers, and frequently paying
smaller rate OF interest to dopoeitors.
To enablo them to perform this, thoir
chief function, tlloir charters aa National Banks
arc Of no sort Of account, as is evidenced by tho
fact TINT othor banks without such charters do
tho aamo kind Of business alongside Of them, in
competition with them, and, to tho extent that
they command the confidence Of tho public, ut
ns high rate Of profit. Tho only advantage
tho National Banks possess over private banks
Is that tho public consitior them genornlly Bomo-
what Rafor than other banks by roason Of tho
Government inspection and surveillance, aud
honco deposit with thom moro freely. There
happonB to DO one private bank In Chicago older
than any National Bank, and this institution, nj
though issuing no notes, certainly docs aa profit
ab1o business, in proportion to tho captal In
vcatcd, as any National Bank.
How far the right to issue notes on tho pledge
Of public securities, coupled with tho various
restrictions imposed upon them for tho exercise
Of the privilege Ia all advantage to the National
Banks, wo shall Rhow below. Wo Judge
TINT the margin OF profit ia extremely mar
row-so narrow in faet TINT the banks will not
fight tho Oranges on that issue. Several National
Banks hayo voluntarily retired thoir circulation,
taken up their bonds, aud gone into private
banking, while othors havo only boon prevented
from doing 30 by aetivo olcotionooring on
| tho part of the Comptroller Of tho Currency.
| Some time since Congress- passed. O law author
i2ing an inczcase Of National Bank notes in the
| Western and Southern States. The Whole
amount authorized has not boen takon up to
this day, for the reaeon that 1t requires m in
yostment Of s115, 900 to got 100000. of notes.
"But you can lend the notes at 10 por
cent md draw interest on the bonds at
| tho same time" aays some ono. Yes,
mud You can Keep IN indoxiblo reserve
| in your bank, upon which no interest Ia drawn,
aud pay taxes for tho privilege Of issuing
notes. In short, If you think 1t is q profitable
business, horo is your opportunity to try it. Tho
surplus is not yet exhausted.
Nevertheless, 80 for aa the complaint Of tho
Oranges is prcdcatod upon a monopoly priyi-
loge Of issuing NOTES.-THE right to issue such
notes in tho whole country being restricted prac-
tically to thoso banks now oxisting,-it IL well
founded. We can 500 no harm to result from
removal of tho restriction. Tho doprccia-
ton Of tho currency Ia not caused by
tho bank notes, but by tho Government noteB.
The former being redoemablo In tho latter,
must always follow tho character OF tho 1attor,-
up to-day and down tomorrow. And so IL
would ho whether the bank notes we're few 0,
many, always suppoaing that tho bauks them.
solves lavo bona fde capital, and that they art
managed with ordinary prudenee. We fame,
tint the National DaulsH, oa a rule, will mol
oppose bill to repeal tho monopoly clause. III
don't think they would ofrer much resistance tt
| bill to take tloir circulation md ta1es ANA,
from them.
An approximate Atatemont from the profits do
riyablo from 9115 Invested in mortgage loans a
10 per cont aud tue samo amount invested ii
National Bank circulation, respectively is q
follows:
National Aank Circulation.
United States per cent bond $ll6l Interest,",
{ Gold prcsa... 7
Currency iBsued on aano.... 90
Less legal reserve. %
Interest ou...... $GB.. ..........,. t.a
. slass
} tn.6
, aEortgage Loau
10 per cont interest on
Difference hotwecn tho two Investments ..,.... Il
Boing IL cents per year on an insoBtmont Q
s115.
| s....NNN[[[......-.-A4
J Testimony thIckcns in tho case of Ann Eliza
vito No. II, Of tho Prophet. to show that he
7 matrimonial miBcry III merely Il myth. job
: ". Young, tho son of tho Prophet by wife No. ]
who III now iu Now York, haa mado . publ
i abatement, III which be atllrms that Ann Eliza
t falsi1er, and the truth iH not in her. Accord