The Ottawa free trader., 1878-08-24
THE NATIONAL BANKS.

While there Is nothing more common
among the politicians and nothing apparently
more taking with their audiences than 10
decry the national banks, friend Of those in
stitutonS asks us to publish the following in
their defence 1t is the summary of "A paper
read by J. ID. Hayes, Of Detroit, to the Bank,
ers Convention, held last week at Saratoga:
Mr. HAYES gave figures showing that ma.
iority of bank stock is held. in small sums ;
that of 20S 1856 shares in all banks, only 16'
persons own over 800 shares each, while in
Pennsylvania alone 32 233 own one or less,
There is no exclusion, but all having money
are at liberty to invest in bank shares if they
wish. Bank shares are largely held by wild
ows and orphans and small investors. Re
garding taxation, national banks held S3i3-
600 600 of the national debt and they pad
taxes to the general government OF SrO'b,Oo',
and to states counties, and municipalities 81
10l 1872, being together -, iS2,Sl9 more OF
taxes paid than they received ON their bonds
The loans by banks and bankers IN 1877 was
$50 per cent more than was loaned IN lS6O,
and millions OF money arc yet waiting Tor pro
titable and safe investment. v no wants mon
ev, and what do they want 1t for? There are
81. .5OO,0 ,0C0 600 invested in railroad bonds ana
stocks that do not pay any interest; thclc are
SGOOOO00O0 hopclcssly tied up in shipping
that pays nothing. Who wants to borrow
money and give good security 10 build vessels
to carry grain fifteen hundred miles, irom Chi
cago TO Buffalo. for one and l-half cents per
bushel? There are SjOO,OO0OO0 tied up in
iron furnaces and manufacturing establish
mcnts doing nothing. Shall build Touring
mills when we have now enough to make
twentycight million barrels yearly? DO theI
amount Of failures argue in favor of investing
capital in business? Among tie number last
wear were some of the oldest AM, supposed to
he solvent firms. There were, in 1876, 2,9lS
distilleres and 3,293 brcWcrics together 6,2l
for making spirits and beer
against 2OS9 national banks. From which
of the two sources comes the greatest amount
Of suffering and misery? one fills poor
houses, asvlums, iail~. IhccapIJaI Of the pru
dent and industrious held by hc banks pays
taxes and supports the whole fabric OF society
Destroy or distribute capital on the pro rata
basis. and the whole system OF government
will fall to the ground, and we should relapse
into barhari-,l and ruin. More money which
promise, nothing would be only nearer ap-
proach to becoming nothing. This cOnycn-
uOn should give no uncertain sound IN iaIur
of honest money. People need money which
dollar. Let Us as nation be honest with our
selves and our creditors, and We will be re-
spcctcd and hard times will disappear The
last cause Of hard times mentioned was from
Young men of education rushing into business
without practical knowledge. Having mean,
of their own or helped by fricuds, they start
without special knowledge of the business or
people with whom they are to deal The gen
cral result is failure, and the consequence Is
large number, in every place waiting for
something to turn up. Too lazy to work, too
proud to bcg, they are on the watch for an OPP
portunity to live without dong either. Some
thlng for nothing is what they want The
grccnback is the only thing that seems ayalIa-
Die to them now, and when got it will be a de-
lusion and Il snare. Wcmust learn to produce
an honest dollars worth Of something. There
is no lack of money to pay for any productive
labor or property. We hope green fields and
rich hurycst~ will in time supcrScdc green
backs. When none will be green enough to
expect honest money in a dishonest way, then
hard times will cease