Ellsworth American. [volume] (Ellsworth, Me.) 1855-current, 1878-09-05

4. Il
per CT. Total EXPENSES 6 Is per ct. Net
income 4 per ct. II banks have 5 per ct.
bonds (and these cost per ct. premium.
the net income would be 5 per ct. City
banks that have n LARGER deposit. have a
much smaller loanable note circulation !;
and have made much larger losses than we
have estimated. No property in this coun-
try ha, suffered more the past year than
banks, several of the Boston banks having
lost A quarter of their capital stock and
surplus. The fact that the New York City
banks. with a capital OF thrty-seven mil
lion notes. have now only seven million
circulating notes conclusiyely shows that
the privilege of issuing notes Is not con-
sidered profitable by them.
A favorite trick OF men who want TO de-
ceive, is TO pick out some Old state bank
changed into national bank, which accu-
mulsted forty or hfty per cent. surplus In
flush times, that the law would not allow
II to divide as other business did, and
which therefore is doing business on its
capital and surplus-together making l50
per cent. inyested-and hold up such
bank as n fair example of the system.
When the stock OF such a bank Is quoted
at l50, It Is simply par. because it has 80
per cent. surplus. When II declares an
ital, 1t is really only 7 per cent on capital
and surplus. from which : per cent. IS to
be deducted for municipal taxation, leav-
ing only per cent exclusive Of taxation.
!. The g0rernn,em ,cOHld lose rather haR
gdtH by calling in bdak notes aud sabstifgt-
ing 9diuioH1l grceabdcts On the other
hand the people would save the per cent.
Interest on the $500 WoOJ0 bank notes
outstanding. less the pet cent. Is con
cedel IL would cost TO maintain a redemp-
tiOn fund. leaving two per cent. saved. On
the other hand the people would lose per
cent. tax on the circulation. and TO l-2
psr cent. municipal tax on banks-total
loss , 20 3 IL per ceni.-because the mo-
mcnt banks are abolished their capital
falls back into bonds and Il uutaxahle
The comptroller OF the currency report.
that the banks OF this country paii last
year over sl6.sUO.VpD in taxes. or prr
cent. on their outstanding circulating
notes. Net loss 10 the ~ ople by sub.ttut-
log greeubacks for national bank notes /
io l-2 per cent, or uearly four million dol
Jar. Annually.
:. In people 'sYuld lass s,li I0rs ts-
cIuss grseHJgcls ar AIT tagdblc aRd sIlloA-
% bIHk acts Irs tIxIjis. This was dccid-
cd Ia the celebrated Nrw York ease report
~ NtA " sAAAAf " stAhA ' AAAE arNt7~ffi 80
a large amount Of boarded greenbacks.
The L. : supreme court held that green
backs were United States securities or
notes. aud being such could not be taxed
any more than bonds. In accordance With
a decision rendered By Chief Justice
Marshall halt a century ago. Il would
br 4 strange thing TO see men who com
plan OF the nou-iaXaiion of 1. =. bonds
where the people are practically receiving
tax 10 reduced rate Of Interest, favor
the substitution of non-tnNahle green
back. where there Is no such practical pay
mcui uf tsN. for taxable bank note.
q. A'olishiHJ national banks trpuld IN.
ersIss rIttsr han reduce n, rat Of interest,
lsssyH he accommodations II business nl'H
and dlsur,ier business and Industry Gov
erumcut could not 90 Into the business OF
lOaniug money, a. some suppose. II would
simply sell it, notes Tor an equivalent. Ev-
erybody knows that banks rate oi inter-
est i always less than irresponsible brok-
crs and mOney-,euders charge. The rate
OF interest to-day i on the average lower
than WAS ever before known In the history
OF the country. Business men who want
constant accommodations would not care
10 rely on individual money lenders. BREAK
down the banks, aud we shall see such a
commercial revulsiou as th!s country heV-
er before knew.
10. iH issue Qf more than .hf'y:fJur nilI-