Marshall County Republican. (Plymouth, Ind.) 1856-1878, 1878-09-26

noies masl 81 va areured ed su..':s'i-s id
such e eoavettbisftv tney nss pas
throughout the lapd wi.aoat dsesunt 4n1 witheu
danger of loss to anybody. Second-Its deposits
must be well securei by reserves. as to BE- reassn
ably safe. Third-Its discount and loan business
must be conducted without extortion as TO afford
reasonable accom- modations to the business comma
nifty. When the banks OF the country possess those
qualities they blessing to the business commu-
nifty worth untold millions year after year. When
the banks do not POSSESS these qualities. they arc
the source of infinite dstrust and restlessness for
then business walks as if on thin crust Of ice. il
danger of breaking through every moment You al
know this.
Now compare the State bank system as 1t existed
before the war with our national bansing system
it exists now and what do YOU findi Under the
State bank system We have had partial and general
suspensions and breakdowns OF banks ia 1903:
1914, 1919. 1925. 1884 1887, 1889. lS4l and
1857 resulting in aggregate losses of hundreds Of
millions to bill holders and deposiors. and the most
disastrous confusion in the business OF the country.
Our national banking system has been in OK
istence about fifteen years. 1t has passed through .
financial crisis distressing perhaps than any
that swept over this land. And what has beea
the RESULT Not a SINCE holder of a national bank
note has lost single cent And the whole loss suf
fered b. dep0silors in national banks during Tho
terrible years of collapse and dis,rust amounted -
about sc. 900 OO0 a loss less .han that suffered By
depoSitors in State and savings banks this year
alone. These are facts which cannot be disputed
The national banks have, therefore, successfully
stood trial which no banking system this c0un-
try stood before.
And our Democ' attic agitaiors demand that
this banking system be abolished. Indeed If are
to abolish the safest banking system ever had Is
"A moment when confidence and therefore a safe bank
ing system is more than ever needed the
must be very weighty. What are theyi
First it is said that the national BANKS enjoy prvi-
leges which oppressive to the people; that fr
every 800 in bonds they deposit in the treasury
they permitted 10 issue $40 in notes; that they
draw interest upon the bonds and then lend out ter
double Interest," that thus they iatten themselves and
grow rich at the expense OF the people, aud that
therefore. it would be economical for the people
if the bank notes Withdrawn ereenbacks issued
in their stead and the bonds xhcn the bank notes
had been issued lie bought up In the market with the
greenbacks issued, 10 the interest tho
bonds I think state the case fairly.
On February 10 last the par value of the United
States bonds deposited in the treasury as security
for national bank notes $346 243 $50. (roid
being then at two and one-quarter per cent pro-
miun, their currency value was 1868. 372. S54- The
amount of circulation issuable thereoa $3 H.
6l9, 1876; the gold interest the bonds SIT ZyO.-
"a the currency value Of the interest the TINA
SIS. 147.279. But, says the comptroller as the
banks are required 10 pay annually into the treasury
of one per cent. their circulation or So l6-
1872; there is left SIS. 03l,0 S7 in currency a.
the net amount Of interest received by them tho
bonds.
Upon receiving circulation says the comptrollor
further the banks are equifed by the act of Juno
thereof, SIS $50. 900 with The treasurer of the
United States a redemption fund, leaving out q
the $31 6l9 l95 OF circulation issaabie upon their
amount If loaned at eight per cent will produce
an income Of $23. 663. 059. aud this income
added to the net interest on their bonds, gives
$3S IA, lao as their whole income from bonds and
circulation. Bat" he says farinef. If the capi
tai itself which necessary to purchase the
bonds ($363, 272 S54) were loaned out by them q
eight per cent. the annual income fh.refrom would
be 500 O6D s2S. and the difference between this
aud the whole income from their bonds and circular
ton. which is 50 644.3l7. or the 65 100 per
banks would receive over aud above what could b
obtained from the loan of the amount of capital
amount OF circulation received by The banks up0n
their bonds less the redemption fund could be kept
In the above calculation no deduction made for the
costs of the redemption OF the bank circula lion.
which lessons by much the profits crcuiatio1.
those Costs were for the Year ending June 30 1877.
1857. O66.
Thus it appears that the national banks are By
no means the gold mines they were represented 70
be. especially considering that of late they have not
been able to keep their whole circulation loaned OUT
the year through and that the losses charged ID by
all the national banxs during the year ending Sep
following year, lS77 $i9 ssS, 5sS. 99, and during
he 81 months ended M.rcn i. 1878 no less ihaa
$io 9o3 143 IA total in two aud a half years q
500, 800, 1880. Now it will appear natural to yea
that the ratio of earnings OF the national banks v
capital and surplus fer the year 1877 only ve
and sixtytwo onehundrejths per cent. aud this year
/ am many Of you business of Cincin-
natl make great deal more money on your cspisA
blood sucking ipsttutious aud thus it i
explained that you do not rush into national baking
But you may say why not deprive the nati0ual
banks OF this currency. thus saving the interest
their bouds and then still keep them under tho
strict government supervision which makes thon
as safef will tell you why not Because the beus-
tit arising from their circulation was the principal
thing which Induced those corporations to come IN %
or organize under the national SYSTEM and 10
nit TO the rigorous goveInnont supervision, which -
by no means pleasant to them. Deprive them Of
that benefit and most il not ALL Of thy 2.400 nafon-
al banks now in existence will withdraw from the
national system and become State banks again. Yoa
can not eat yvnr cake and keep ii too.
Can the national banks be called monopoly
Monopoiies are exclusive, and national banking u
tree to any person in the Land who has money u in
vest There Il, then monopoly OF which every
body become part and beneficiary. There are
at present 20S. 000 shareholders in the national
banks ia the United States More than ons-halI Of
them held shares to the amount OF $1,000 and lssA
They are presumably people Of limited means whs
have TINS invested thar little surplns Aud any
may, under the laws, organize national bank And
this system is called q monopoly Why the charge
Is too absurd for argument And where is the %.
been able TO efettl These banks are the most rig
idly restricted the most closely watched the mo1t
keeniy supervised and controlled Institutions IN the
county. has this money power ever been strong
enough In Congress to remove single one Of their
restraints to secure them the least aidtioual privi
ege or latitude of action or to relieve them OF sin
gle one of their burdensi You all know that it has
not. What q money power. that can effect nothing
for Its own advantage!
And now, my friends, am come to q close. The
American people are al present engaged in politi-
cal struggle TO determine the character of the next
National Legislature. The financial question haA
for the time being, wellnigh swallowed up all oiher
issues dividing parties / sincerely regret to find
the Democrats of Ohio firmly welded to the faar
cies combated IN 1875 as they then, and
their party in other States drifting into the
dangerous current / sincerely regrpt this / Say,
for am not pa tsan enough 10 rejoice At the
of the opposition il they threaten to become de-
structive the public welfare Idesire both parties
to be as good and patriotic as possible. so that the
bad tendencies of one may encourage the faults
Ut the other and / am glad therefore, to SEQ not
few Democrats maufuly stand up for their old hard
with their faith.
The situation appears very grave. diligent e.
itstion seems have propagated the paper-mousy
may after ALL turn out to be really like the decisvs
paroxysm in typhoid fever. which, although sppAr-
asd r;,h ntsii;,si, a' a.; -
minded people the Americans it scarceiy so
otherwise through Xaatayer exlraYagance Of i'm.