The Lambertville record. [volume] (Lambertville, N.J.) 1872-1968, 1878-08-28


TO denounce the general banking system oftht
country as sue that gives unfair and exclu
siee privileges TO the banking corporations
by which they secure big dividends and es
cape taxation. The following article, which
appears as communication in another journ-
al, we copy, as it explains in clear and able
manner the banking system and its regula-
tions, by which it will be seen that the inter.
ests of the public are fully guarded and that
the banks both directly and indirectly are tax
ed
THE NATIONAL BANK SYSTEM.
There appears to be misunderstanding
(if it can be called by so mild name) amongst
the people as to the actual status and law that
governs the National Bank system OF the
country. Few, if any, have the hardlhood or
ignorance To deny that the system is the best
that ever existed in this country. No man
has or ever will lose a penny by holding
broken National Bank note hence the sys-
lem protects the horny hand of labor from be-
ing sWindlcd out of his toll stamped earn
ings.
combination of capital concludes TO start
a National Bank. (The laws make 1t open
TO aud available TO alb They take their mon
ey and go into the 0pen aadrhet and purchase
of the capital they name. These bonds were
issued by the Government to raise money.to
clothe, feed and pay the soldiers in the field
that were called to save the life of the nation.
To induce people to take them and pay their
money, for them conditions were put into the
contract to make them desirable to have.-
hese bonds are evidences OF debt not issued
to-day, but in the dark days OF the rebellion,
and are in the hands of those that have paid
for them, they receiving interest from the
Government every six months according to
contract. Now this association have the
bonds the Government pay them the same IN
terest according to the contract that they paid
lefore and no more. The Government says
by law you may start bank by leaving those
bonds in the National Treasury, you may is
sue ninety dollars for every one hundred dol
lars of bonds you deposit, and the Govern
ment will endorse these notes il you fail to re-
deem them, and the holders may come TO us
and we will pay them one hundred cents on
the dollar. That these notes may be of a uni
form shape and execution to prevent so faf as
possible the loss by counterfeits, we will en-
grave, print and endorse them, supply them
in sheets for you to sign and issue. This is
all done to make them circulating medium
that will be entirely safe We will tax you
certain amount that you may bear your full
share of the cost of the Government about 20
per cent. to the National Banks, and you
nlust meet your share of State taxation.
Again, it one of your notes is destroyed in
any way before it is redeemed, we the Gov
ernment of the United States shall have the
benefit thereof. This is in few words the
whole history. Now where does the reason
lay for all this howl2 Is there any one hurt OF
wronged out of one cent by these National
Banks under thes laws2 If so, fail 10 see it,
They pay IA tax to the nation and State that
amounts to from 81 to Al per cent. OH theil
capital. They must stand ready every bust
ness hour in the day to redeem this eircula
tion. They must bear the expense of thei
organization and pay incidental expenses, &c
In these times of commercial oppression thu
average earnings of these institutions over tn,
whole United States does not exceed to
per cent.
What does the public get in return? The.
get positively safe aud reliable currenc.
that traveller can use without question o
discount from Maine to Florida, from thu
Lakes to the Gulf from the Atlantic to thu
Pacific. They also get "a supervision of thu
affairs of these banks by the government, wht
publish them to the world, that cannot fail t
protect the careful depositor. From whence
comes this senseless howl that we hear on GU
street corners and paraded in newspapers o
no character If the honest public will ex
anime disinterestedly they will find that they
emanate from the vaporings of the most mis-
cradle and unreliable demagogues that live
men who desire to live upon the credulity o
the people newspapers that seize upon every
thug to delude and misead the superficial
thinker.