The Valley Virginian. [volume] (Staunton, Va.) 1865-1895, 1878-10-17
to determine what kind of banks you: will


have.
A voice-"N. P. Banks" [Laughter.l
(. Mr.. Blaine-A very good kind. Bank
have existed ever since commerce was known
among men, and you cannot dispense will
them, for the simple reason that it is thu
place where the borrower Of money meet
the lender. You cannot carry on business
without having some common point where
those who lend. Ii you break down the
National banks under the cry that they are
a monopoly, you raise up the ghost of the
old State bank just as sure as fate.
| A voice-"Can't we have as much money
under the old State banks as now %
Mr.. Blaine-I remember of hearing of a
man bargaining for stock OF timber. Three
prices we're offered. One was to pay in
wildcat" that was Michigan money. An
other price was in ''red-tag," which was
Ohio money, and the best offer made was to
pay in good counterfeits ON solvent bank
in New England. [Laughter.] That is the
old State bank currency. o, say some gen.
tlemen, the National banks have double
chance. They get interest on the bonds and
on the money they circulate. That is an ex-
ceedingly good story until the other is told,
and it would be very effective if the National
banks did not pay taxes. I should like any
gentlemen to tell me if he knows, in all his
experience, of property in any form that
pays the taxes the National banks do.
| A voice-"Don't the borrower pay the
taxes 20
Wait minute. The total valuation OF
your great and beautiful city is $3.50, 900, 900,
and the total tax levy is seven millions eight
hundred and odd thousand-short Of eight
millions.
A voice-''The property wouldn't bring
half that.
Your National banks pay in $S55,000 in
taxes, one-ninth of your tax, eleven per
cent; and, besides that, these banks pay
s705,OO0 in taxes to the General Govern
ment. The National banks of this very city
of Boston pay $1,56Oooo ON capital of
$50, 700, 000-tfat is, three per cent. on the
whole. Will any gentleman tell me of any
ffty-two millions of property in the city of
Boston or the State of Massachusetts that
pays that tax? [Applause.l Well. suppose
you abolish the National banks, if that is
the question you have got to vote on. The
bonds which are held by the Government
to sustain the circulation, and which are the
basis of the corporation that pays the tax,
60 back to the holder, and are not in them
selves taxable property at all. But the
bonds which are non-taxable in the hands Of
the banks, are put into circulation and vol
UNFAIRLY subjected by their owners to the
severest system of taxation in the United
States. [Applause.] The entire bank circula-
ton of the country is 1922, 100000, in round
numbers. There are $430, 100000 of bonds
deposited to secure that circulation, and
every one Of that $3.50 1000, 900 is worth and
will sell for more than its face in gold to-day
in the markets of the world. [Applause.l
submit that the like Of that never existed in
the world. The boasted Bank of England
and of Amsterdam, or the Bank of France.
never presented such security to the bill
holder. The 1922, 900, 900 of National bank
bills out in the hands Of the people tonight
are sustained by $3.50, 000,0 900 of gold, or thai
which is absolutely equivalent to it. ant
make the bills absolutely good IN the hands
of the holders. Applause Now, the tota
taxes paid locally by the National banks Of
the United States amount to 50, 800, 600; thu
$7,200,O00. Put them together, and you ge
sixteen and a half millions of dollars of tai
derived from the National banks of tn,
country. Now, want to state as fairly al
I can the proposition of the modern Green
back party-that is, to save something to th
people by substituting greenbacks for Ma
tional bank notes. Now, / will admit, TO
the sake Of argument only, that you cal
call in that amount of bonds. All the bond
above four per cent. sell at premium.
suppose you can call in 1922, 1000, 900 of fou
per cent. bonds, and issue greenbacks ii
place of the bonds. That is q fair state
to do.
| will admit their claim for the sake OF til
argument, but suppose that is done and yo
5 have retired 1922, 100000 Of United State
four-per cents or that which is equivalent
} will any gentleman that is quick at figure
tell me what the United States would save b
the operation. At four per cent. between
s sl3, 200, 900 and s14 1000, 900 you would say
: upon National bonds that are now payin
n a tax of SIG, 1000. That is to say, wher
n would be the saving to the people if basi
e of,taxation that now pays tax of $4,000
900 is taxed in order to retire sufficier
: amount of four per-cents 70 give them a say
: ing Nof sl3,0OO.0O0? Instead of a savin
r this mode of procedure would result in tf
j. loss to the people of this country of $500
e 900. [Cheers.l For the last en- years
e this country there has been at deal I
= inquiry among men as to whether or not tt
n bonds OF the United States shall not be tax
J. ed. They say that one man is taxed upc
= his farm, another upon his merchandise, ant
e CtlaJ DellIg5 LHe Cast, JIG ooAuholoOi o"S
|, to be taxed upon his bonds. Well, that
/. strong proposition. ] assent to it. thir
n the United States bonds ought not to escal
r. taxation. [Cheers.] But 60 little farther
IS I say they don't escape taxation. [Cheer:
will carry my statement little farther ;
$. say that they pay larger and fuller sha
s. of taxation than any other form OF proper
j. in the United States, National banks alo
N excepted. That is pretty strong propo;
it ton some of you may think, but | repeat
" with the exception Of National banks, t
a. bonds of the United States pay fuller al
as fairer amount Of taxation than any ott
it form of property in the country, and tn
B nav it in advance too. Tremendous a
in plause.I Now, let us urgue that little.
do see two gentlemen, both OF whom look al
he they had $4,000 they want to invest. Q
his is a conservative gentleman. He thinks
TO will take United States bonds. He puts on
do glasses and looks over the price list of
,at stock market, for the purpose OF seei
ms what number and variety Of bonds he v
mr. take, but will save him any further trou
on nv telling him to just step in broke