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

one quarter per cent each HALF YnAR upon Us
cspital stock beyond the amount invested in
United States bonds. Take for example, the
" First National Bank OF Paw Paw which has
q capital stock of 100000, and has $4,000
deposited in bonds to secure it's $4,000 circu-
lation. Instead Of paying as the Independent
says. an annual tax OF y per cent. on it's circu-
lation it pays yearly tax OF one per cent. on
circulation, Il per cent. on the $4,000 stock
not invested in bonds, and Is per cent. on the
average amount OF it's deposits; and this be-
sides the state, county, town, village and school
tax which Is levied on its capital stock and on
its real and personal property, precisely as il is
on all other property in the same locality.
Tables prepared by the Comptroller OF the
currency for the years ls74-56 show that the
average State taxation Of National Banks for
those years was two per cent. which makes the
total average taxation nearly four per cent. in
stead OF "a per cent. 9di b. .9tlH.
Again our enterprising imitation friend states ::
IA National Banker can loan $1,000, more or
less, to farmer and take mortgage on the
farmers house. When the mortgage comes
due he can sell the property and compel the
man who would redeem it,, to obtain for him
greenbacks, and this because the identical
bank notes that he loaned out are not legal
tender
There are several reasons why National
D.n ~ 40 oh Tn ~
place the law expressly prohibits National
Bank from loaning money on mortgage to a
farmer or any one else and the bank can only
take q mortgage to secure a pre- existing debt,
that is, If some man has contracted debt to
the bank and fails to meet il when due. then
and only then may the bank take mortgage
into possession of the bank by reason Of any
such mortgage, or which it may have purchased
to secure its debts, must under the law be dis
posed OF within five years that being the
limit of the time National Bank is allowed to
own any real estate except such as is necessary
for its immediate accommodation in the tran
-
IN the five years, whether 1t realizes first cost
or not. We think we have known property to
be sold to a National Bank not thousand
miles from here, that will hardly prove re-
numerative investment at any sale which can
be made within the time limited but this is
only one thing among many others. like bad
debts, &C., which bank mast enter on the
loss side Of the ledger, and which has ten
dency to reduce those enormous profits we
hear so much about from our greenback
friends. And the bank cannot compel the
farmer or any other Of its debtors to obtain
greenbacks for any debt owing to such bank
for the very simple and adequate reason. that
the law compels every National Bank to take
and receive at par the notes OF every other
National Bank for any or all debts or liabilities
owing to it, excepting only those banks which
are organized for the purpose Of issuing notes
the people whether the bonds OF the govern
ment are held by bankers or private individuals:
except that III the latter case they are made
subject of taxation which otherwise they would
not be, and to that extent it is better for the
country that the bankers own them: for we
owe the debt and unless we repudiate we must
pay it, and we must pay the interest to some
one as long az we owe the principal aud it may
as well be made the basis Of a banking system
as to be held by other parties. 1t is not fact
that the stock OF our National Banks is alto
gether held by the wealthy men OF the country.
very large proportion OF it is in the hands OF
those who are in moderate circumstances or
who have managed to save small amount for
future use, and who have invested in bank
stock for a sure and permanent income from
such savings; and this class OF worthy citizens
constitute a great number OF those against
whom our greenback friends are wont to rail,
and call bloated bondholders. shylocks and
other opprobrious epithets, and against whom
they endeavor to excite the prejudices OF their
followers by the publication and circulation OF
such fmsy falsehoods as those contained in
the article under consideration, and which any
one can ascertain to be false by simply refer
ring to the law establishing and regulating the
banks, with which the author Of such trash
seems to have been wholly unacquainted.