, 1875-08-20
WHO ARE THE EM1NEY.LENDFRq

WHO ARE THE MoNEY.LENDERsr
Do tho men who drnouuco the money
lenders" rs class, who nro grinding thei,
follow-non md consuming tho substance oi
the producers, over ask themselves tho peril.
nent question, who are the money-lendcrs ot
tho United States? The dcmagoguos cry
1gh1ist 1noney-Iendera is on par with that
lndulged in so oxtravngantly against corpora
tlons in tho Legislature Of Illinois last win.
tor. Twenty-Five mon, each having from
$500 to $4,000, mud no ono having enough
by himself to engage in the business, COM
bine their money and organize as corporn-
lion to engage in the purchase Of rnw ma
tcsial. to purchase machinery, hire labor, and
| convert those materials into manufactured
goods. Because thcso twenty-five men unite
their small capital to do TINT which they
could not do separately, the policy Of the
Legislature OF Illinois hos been to front them
NJ pirates, and the Democratic orators {and
sosnc Republicans) have denounced them rs
enemies to the State aud to mankind. SINH
]ar ignorance welcomes the equally stupid
| doaunciasion of the moncy-lonlers Is c1ass
MS public enemies. 1t mar be interesting to
know who these money-lcnders aro
1.At tho close of 1878, or in the very height
of tho distress resulting from the panic,
thorc were on deposit III the savings banks
of ninc States, viz: the six Now Enplnnd
States, Now York, New Jersey, and O.llifor-
min, and tho City Of Chicago, $75o, 1910, ,G3o,
owned by 2,lsB, B,G19 different peraons. This
left twenty-sovcn other statos and Territories
not reported. It is safe, however, to placo tho
whole sum on deposit in all the savings banks
fthe country at 81 900 600, ,00o, which, at $3.50
rs the average deposit, would givo 2, ,857, ,e85
| as tho whole number Of depositora. These
persons havo loaned their money to the say
| ings banks, in su,nB ranging from 10 cents up
10 $1,000, at interest, and tho banks lend It
out again, they acting rs the agents OF brok.
| ora for the ownors Of the money.
.. Tho next class is composed Of the State
| banks, say 1000 in number, which have d.
posits amounting probably to $3.50, ,0o0, 900.
8. At the close Of 1874 there were 2,o0s
National Banks in operation, having On de-
posit $Go9, ,oc8,99G, and S4o3, 7o5, 121 capital
paid in. A recapitulation Of these details
will show the following;
No. n money!
2H'7.2ss dspoaitora In sav,nsu hanks, iii o'ai oo
10000 stockholIou IN savings bauks Ioo,00Q' 'V0
100000 dslo+ltors in stase and prtv4ts -
$4,000 .tociloldsi. in gtsts aud pii. ~
s1oeos d.ps:et: i s:,on: a. soSsss Sssss
2o.doo stockholders in National Banks. t9s.7d',l2t
A,U27, ,2s5 deposition. Ind stockholders
o"a1n&, n&,..,................ r. 3G7, ,o3&,l17
This is the partly estimated number Of
.11r1a+u In I'm foS %ok. II
amount of money owned by them aud loaned
through the various banking organizations Of
tue country. We have no means even Of es-
timating the number OF private capitalists
who lend their money directly. In addition
to these there are the many life and fire in-
huranco companies who lend their surplus
money on real estate security. To this class Of
lenders tho people Of Chicago were largely
indebted for the means to rebuild the city.
These companies represent a number Of lend
ers equal to the number Of their stockholders.
Having thus ascertained approximately the
number Of tho money.lentlers Of the country,
il not ont Of place To inquire who they arc.
In the first place, We have nearly three
millions OF persons, each having small sum
OF money, which il of itself not large enough
to bo invested either securely or psoftably;
these persons, by combining their QUO or two
dollars with some other persons dves, hfties,
and hundreds, ara enabled to place It ut inter-
est IN the hands of the savings-bank manage.
ments, who In turn lend it in large Gums on
profitable terms to men In al branches Of
business. There are thousands Of houses in
lineage which hayo been built or bought by
!oans from these savings banks; the money
II hlso loaned on time to manufacturers to be
used BY them az wages.tund, and the money
OF the depositors is thus used to euabla the
employer to carry on his business.-tha
money going back In weekly instalmente to
| the depos!tors to be redeposlted in the laula
llen in all kinda OF trade are bonowers NJ
these banks; md the money which, IT kent
in the hands Of the owners, would be un.
profitable to them andunproductivut 10 others
IL actively employed rs loans in large or snall
sun,s to those engaged in octiye and produo.
tive labor.
1n like manner, the State and private banks
| and the National Banks have their capital
contributed by nearly half million OF per-
sons. each having comparatively small suus,
which, when combined with that Of others,
forma fund with which to engage In max
lug loans. III these banks nre deposited 9th.
CT hanareds o: millions OF money hold by
nea::y inill!o;. Of l,trnons. It IL placed tlers
! Gu ls.ls It Is ::std Us !oaus, GENERALLY on
f'io,s ti'ns, anil .canel out 10 merchants,
Esn''i'fts'dEsis, bas:!erd, slsniess, aid traders
! u al k'us.s Ut commerce a.l proIuusicn. A.