Fayette County herald. [volume] (Washington [Washington Court House], Fayette County, O. [Ohio]) 1860-1???, 1875-09-02
From the Cincinnati Commercial
Facts on Finance.

l. Two and two are four-always
have been, and always will be.
2. One hundred cents make one dol
lar.
3. A promise to pay dollar is not
dollar
4. The value of promise to pay
dsllar, or to do anything, is regulated
by the integrity and good faith of the
maker in fulfilling the promise.
3. The more promises to pay which
man, firm, corporation or q Gov
eminent issues, without fulfilling them,
the less they are worth. "a .--.
6. When man, firm, a corpora
ton, or Government issues and sells
bond, a note, mortgage, or any
other obligation, he (the maker has
no further control over it but to pay
it when due. If he attempts to do
anything else he will lose his standing
and credit, and be ruined.
Z. The Government bonds which
the National Banks are compelled to
buy and deposit at Washington to Sc
cure the people against loss on broken
bank bills-Gfthe banks should fail y
are bought and paid for by the stock
holders of the banks. The bonds are
the private property of individuals,
pledged to secure the bills of the
banks.
8. Banks, or private bankers, who
do not issue bills, do not have to buy
Government bonds.
8. If the National Banks were not
allowed TO issue bills, the stockholders
would notneed to invest their capital
in bonds, but would keep it for use as
private bankers-as any bank does
which is not a National bank, or which
does not issue bills.
10. If National Banks were to be
abolished, or not allowed to issue
bills, they would have to send their
bills back to Washington and have
them destroyed, thus contracting the
currency without substituting gold, OF
anything else in its place, to the extent
of $685., 100000 Then the stock.
holders in the banks would take away
their bonds from Washington and sell
them in New York, SO 5 to get back
their money which they invested in
the business.
IL. The bonds from New York
would go to London and other parts
of Europe and the gold interest which
the Government now pays to the
stockholders of National Banks a
home, it would then have to pay for
eigners abroad.
II. By authorizing National Banks
the Government thereby creates hom'
investors for $38O,OO0,OOO of it
bonds, which would otherwise be hell
in Europe.
Is. BY having the bonds held b,
stockholders of National Banks a
home, instead of being held in Europe
the Government is enabled to get bacl
a large part of the interest it pays OF
the bonds by taxing the circulation
and deposits of the National Banks
The total amount of interest paid by
the Government in 1874, ON bonds de
posted to secure National Bank bills
) was $22, 100000 currency. The tota
! amount received back from the Ma
tional Banks in payment Of tax on cir
culation and deposits, during the sam
/ time, was SIS, 200, 900 currency. There
r fore the Government gets back three
t fifths of all the interest it pays to NJ
= OAonS'A AIMS oh poHus o"Aeu ny UHeI
: or their stockholders.
/ IA Anybody who has money, proE
r erty or credit can start a Natio NJ
d Bank, or join with others in startin
il one, any day he chooses, and there
no limit to the number of banks {
b amount of circulation. The busine:
e is free to all.
e Is. Honesty is the best policy
t always has been and always will be.