The true northerner. [volume] (Paw Paw, Mich.) 1855-1920, 1878-05-24

baaks are not suficientiy great 10 induce men
of means to engage in the business. In proof
OF this we have but TO refer to the report Of
the Comptroller OF the currency for the year
1877. which shows that during thar year only
twenty -nine banks we're organized with q
capital OF s25s9,OOO, while twenty-six banks
with capital OF -, 5ss, 800 voluntarily dscon-
tinued business, and ten banks representing
capital of s3,94i,OOO failed during the year.
From the same report We learn that the
average dividend OF the banks o. the country
for the period OF eight years ending September
lst 1877. was only $40 per cent. instead OF
from Is TO 20 per cent. as claimed by the ire
deemables, which is not nearly the amount that
parties have been able to realize by loaning
money outside OF the banks.
Again tho Independent says: The bonds
themselves do not promise gold, but the Score
tary o; the Treasury makes contract outside
OF the law that interest shall b. paid in COIN
This is just as far from the truth as we'll
could be. The only bonds that can be pur-
chased from the government are the and Az
per cents and the language OF the act authoriz-
ing the issue OF such bonds expressly provides
that they shall be redeemable IN coin OF the
present standard value, at the pleasure OF the
United States, after ten years from the date Of
their issue, and bearing interest payable semi
annually, in such CON- 80 that the contract
to pay interest In coin IS exactly what Is pro-
vided by law and the same is likewise true OF
the other bonds OF the government OF prior
date but il parties desire these bonds OF older
date, bearing six per cent. interest, they must
purchase them in the market, paying premium
Of from to 20 per cent. for them, as none are
now sold by the government.
To quote again from our neighbor; II you
are starting a National Bank, you have con-
verted your money into bonds, and draw in
terest Oh bonds, winch are left on deposit in
Washington and you can stop there, being sure
OF your interest FOR six months"
or course you can, and why shouldn't you ?
II party has invested his money In interest
bearing bonds, whether governmental, munich
pal, or private, surely he ought to receive the
interest for six months or six years. or any
and they remain uncalled and unpaid. and no
one but a blatant communist, who wants to
prey on society and subsist upon other mems
property, would ever deny, dispute or find any
fault with so plain and self evident q truth.
Again, saws the Independent: You are sure
Of six per cent. interest In gold on your money
converted into bonds.
This is not true, because six per cent. bonds
cannot be purchased without the payment OF a
premium therefor, and IN reality much the
greater portion of the bonds deposited by the
National Banks are bonds drawing less rate
OF than six per cent. BY referring again to
the report OF the Comptroller we find the total
amount OF bonds on deposit by the banks Of
the country wac on Feb. 18th, 1878. S346, 243,
$50 and that OF this amount only 5S4,4 800
are six per cents, S199S14 900 are five per cents
S44,14i,s50 are four and one half per cents and
s17,sO20OO are four per cents. so that In point
OF fact less than one quarter Of the banks are
drawing six per cent. on their bonds green
hackers to the contrary notwithstanding.
Again the Independent says, 4" In case your
bank fails, the Government, for all National
Bank bills you have put out, will give other
bills therefor for a period of two years when
a - cd md xr;ft l.
with all the bills that the Government has re-
deemed for you, viii be pad interest on your
bonds all thus time, and after dsductng the
amount Of money paid out by the Government
to redeem or replace your National Bank bills.
the balance Of the bonds will be turned over to
you. Those bills which have been lost or de-
stroyed and do not come to the Government
within two years after the failure OF the bank.
are never redeemed, but are lost Then the
Government charges the bank only for the
redemption Of such bills as may be presented.
so that the entire loss Of bills In the hands OF
the people, destroyed by fire or other means.
is gain to the National Bank"
This statement contains a very little truth
mixed with good deal OF falsehood 1t is
true that in case OF the failure OF National
Bank or in case OF its voluntary withdrawal
from business the government will redeem all
Its circulating notes no matter when presented.
and such redemption is not limited to two
years No person ever lost dollar by reason
OF holding the bills Of National Bank that
failed. and there is no law requiring them to be
presented at the Treasury for redemption
within any specified time, neither will the
government surrender all the bonds to such
bank after deductlDg the amount of money
paid for redemption during two years time
but on the contrary enough lawful money OF
the United States to redeem every dollar OF
outstanding circulation must be deposited be-
fore such delivery of bonds to the bank, and
in case Of failure of bank the law authorizes
the Comptroller Of the currency to either de-
clare the bonds OF such association forfeited
to the United States or to sell them at private
sale for the benefit of the government, at not
less than par, il be deems such sale advisable.