The daily intelligencer. [volume] (Seattle, Wash. Territory [i.e. Wash.]) 1876-1881, 1877-04-02
BT
DAVID HIGGINS.
Monday. April 2, 1877.
THE NATIONAL BANKS.

IL i. asse.tel |, not without a show IT
reason, tha. the national banks Of the
United States, for every $4,000 Of their
capital actually invested derive an
average Of 5000 in gold per annum as
interest. The molus is this, the banks
by depositing their government bonds
with the L. s. Treasurer rs collateral,
are authorized to issue notes (greenbacks)
on the credi, If the government
to the extent Of 800 900 fer every $780,
0C0 Of bonds deposited The bonds
while lying quietly in the sure custody
Of the Treasury continue to draw their
six per centum interest 10 the account
o. their owners. the same al IL IN the
private firm safe. and. moreover. are
not taxed For the use of the govern
ment's promise to pay they are charged
nothing. bat are enabled to loan these
out rs their own private capital at an
average profit Of seven per cent, max
ing in reality 81. 800 in currency as the
usuiruet of so. 900 of their own funds
the margin between the 100000 in
vested in six per cent. bonds and the
100000 currency winch is issued to
then instead. To pu, it more logically,
supposing six per cent. TO be q full
equivalent for the use Of money in the
States where the bonds are bought, all
the interest which the banks receive
from the lean of the 90 per cent. of
greenbacxs issued 10 them, is o clear
bonus on the part of the government
Such an arrangement looks like ia
voritism--like inequality and injustice.
Such in fact it lie. but tho system had
its final cause. 1t may be classed among
the imperious military necessities" of
the war. The government could not
possibly get alcng III that dire extrem-
ity without the support of the money
power. 1t had to concede favors. It
cannot consistently be ungrateful now.
nor should it. The capitalists who
bought l.. s. bonds in the dark aud
bloody days of 1861 5. were loyal men
men of faith and moral courage
They have been justified in receiving
some special compensation. on the same
principle As the one-armed survivor of
the battle ~ a:s hercaved family receive
pension.
But ordinarily the principle is wrong
and subversive-j just as war itself is
wrong and subversive The govern
ment takes away from Territorial legis-
latures the right to make any private
monopolies. Consistency requires that
its own practice does not scandalize its
principles.
The report Of the Comptroller Of the
Currency shows that National Bank
shares IS held in every State and Terri
tory in the Union. except Washington
s,702. eos are held in the Middle States.
1858. 39s in the Eastern States, $50, 39l
in the Western States. 35s. 500 in the
Southern States, and 6a ,5i5 on the Pa
eific Coast. Shares are also held in IL
other countries Oh the American CONT
nent, aud - countries of Europe. Asia,
africa aud Ocuani.a. The total num-
Der of shares is 50o .o39. Of hich 0si.-
o92 are in foreign hands.
!ot,9.6 persons hold osharas or less
50. 300 hold from 10 TO 20 shares; IS.
ja5 from 20 10 80 shares; 1885 from
30 Ia 80 shares: -. lB;, from 80 to loo.
ipGsi from 100 Ia 900 shares, and s6
over 800 shares The fetal number of
shareholders is 2oS. is6. and the average
Of stock held is $1,000.