The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1875-08-05

deposit these bonds in the Treasury. ard re-
ceive therefrom bank notes to the amount of
500. 600 This if NAV lend in the wav of busi
noes at such ratn ne + Gan oet Now the hank
| is ont of nocket onlv the difference between
500 0O0 and tho costs Of the bonds saw s115.-
600. Yet if receives interest on the bonds de-
nosited saw 81 000 or % nor cont unon IFS ac
tual outlav Then If has IFS 500. 900 to operate
with. These neople sneak of. figure ont
enormous motifs to the bankers uDon Che trans.
ant;nn =
V;lI ,.o,, ha aoo1 onouab to exnlain tho a.
t,al n,.'eticsl onnration If a national baul, in
p p,Il info bpsiness and its AVERAGE profits
Far ,h, hnnetit Of the initiated
'0' '''' ~'V y ~ - 1,,,,,,,rr,o.
! ts 1 Z. Ni.'' oi'''Ae'AN'
COMMENTS sT Sd 2 ~ GAZETTE.
The common NfV6E putting the national
bank question to the.people: by thoseewho seel.
to make political capital against the system is
this: CAPITALISTS unite and organize a bank
| They then buy the bonds. deposit them with
the United States Treasurer. and oct their cir
culation. The bonds draw interest, and the
banks loan the circulating notes, upon which
they get interest. Then the bank is iii receipt
| OF a double interest 10 make,ft strong they
put il in this way: ,.The capital is sl0o,0OO.-
This is invested in bonds bearing six per cent.
| interest in gold, Welding equal to sc, 900 in
currency. Upon the deposit of their bonds
500, 900 in currency is issued. This is loaned at
say ten per cent. being $4,000. In this way
the bank realizes l6 9O-lOO per cent upon its
capital. If the Government would order the
retirement of the national bank notes and is
sue greenbacks instead, it would save the in
terest Oh three hundred and fifty millions of
bonds-say twenty-one millions per annum. y
This is the loose way in which the question is
put and largely indicated by the ingenious re-
form CORRESPONDENT.
But what are The facts? First as to profits :
The seni-annual dividends of the national
banks from 1869 to 1874. inclusive. on capital
and surplus. were as follows: September /.
1869. 81. Marcj, /. 1870. s4.27: Sentembe,.
| /. 1871. s4'o7: March j. 1872. 4.l6: Septen,-
her /. 1872 Sd ~. March i. 1874. 81 81 SEN
temher 1873 81 10. March 1871 sa 81 .
! March | 1879. ri az
The AVERAGE dividend unon suDlus and car
ital is a little over eightDey cent. De1. amman.
and tIc averaoe dividend upon ca11tal alone n
little over nine per cent. Thus the fabulous
profits of sixteen and twenty Der cent. turn
out largely to be the wind of the reckless DEM
agooue who talks like Sam Cary. without anv
REGARD whatever to facts. We supnose no rea-
sonable person considers nine per cent. an I'M
reasonable profit upon bank capital. Private
bankers would consider it a very Door business
that would not weld more than that, The
risks CT banking are. Of course. great. and
when men invest their capital in tie business
they take this into consideration.
| D. Taxation. The banks DaV in the first
place. a Government tax on circulation. deDos-
its and capital. This amounted in ten wears
to s57. us. GIG O6. as follows: 1864.
SI67. 3Ol As 1865. ST. 95l. O2D so: 1866.
So l46 735. 81: 1867 $3.50 G95 81 1868.
$751;. POSI- 1869, 1891, SS9.g9 1870.
s., go. 1870; 1871, 3G775, 154.67 1872,
| S., 1903 9i0.G7 1873 s7,0G4, 616.93; 1874,
/ 81, 0S3, 59S.85.
In addition to this the national banks pay
State, county and municipal taxes upon their
capital aud surplus. The ratio of taxation un
| der this head i'll 1873 was: New York City,
$50; Buffalo, ALBANY and Troy, to per
cent; Boston, 2.34 Baltimore, 2.o3, Cincn-
matt, 5.oI; chicago, 2.3l ST: Louis, ~ !;
Richmond. 10y st. Paul, j; Charleston, 800;
Memphis. 3.2O.
/ III local taxation the duplicate represents
about one-'mlf the real value OF che property,
taxed. Banks, however, are taxed OIL their full
| capital ANA surplus Ihey thus pay d0N0te
| take; OF private illdis iduals, bnt we will call
the State and national taxes equal to four and
one-half per cent. This is about what the ma
tional banks OF Cincinnati pay without making
any allowance for excessive valuation.
| The capital stock and surplus of the 2,004
national banks on the "a OF October, 1874, was
as follows Capital stock, S493, 765, III !; sur
plus l2o,96S, II; total taxable, S622, I33, III.
rms at = per cent. Is 30 l3e, 66l 10.
1t IS thus seen that the national banks pay
lll annual laA-illlolal, Otlte anu lhailiclpal
of s3l l36, G6l.0o. VI course portion OF
this capital would be reached by local taxation
If the banks We're abolished, but only very
small portion. 1t is we'll known that private
bankers pay very little tax, while money is
hardly reached at an. rake Hamilton county
for example with the exception OF the ma
tional banks little money is returned for taxa
ton. United States bonds and greenDacks are
not taxable, but national banks cannot escape.
3. The Banking System. 1t is proposed that
the Government OF the United States small per-
manently engage in the business OF issuing pa
per money that shall be legal tender Tor all
debts, except duties Oh Imports! Ii this IS to
be the policy, then a strong argument might
be used in favor OF having uniform green
back currency; but no one who desires a sound
financial system that shall not fnctuate with
every blast OF the political wind can faver any
such plan. Greenbachs were issued as war
measure. and as soon as practicable the Gov
eminent should return to gold and silver as the
only legal currency, leaving it to private capt.
talists to issue paper money, under national
law, which currency shall be convertible into
gold at the pleasure OF the holder. This is the
only ground upon Which specie payments can
be resumed and maintained. 10 this end the
national banking system was established, and
to this end it should be maintained. 1t is the
best banking system we have ever had i'll this
lhere Is no opportunity uider IL LOT Wlla-cat
banking. IL mas looteu oa1 tlle olate ealN
system ana secured TO the people ,;illio a,