Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1878-07-02

manhEo CO0NOuNlous knkCuku hbeAuAf
bureau
The National Banking SySteHa.
The Democracy OF New England So far
IS 4. has spoken ia STATE conventions, de-
claros against the National Banking Sys-
tenn on the ground Shat 1t Is 4 monopoly,
and - sustained to the deuriment and a.
the expense OF the General Government.
Il Is demanded that the circulation OF the
national banks be withdrawn and To-
placed by an issue OF Treasury notes.
Those " 40 advocate this policy. hold that
the Government would save the interest
on lhe bonds which banking corporations
have deposited with the Treasury TO Sc
cure their circulation. luasmuch IS the
amount OF such bonds Is SS46, 900. 900, II
may 90 assumed that the tIovrrdmen' =
not IN position 10 pay 50 large \ part Of
u.s. bonded debt Al once.
Doubtless the majority OF the stock
holden, ~ national banks Snu especially
that portion who are called bankers
would otter no objection TO the rrdemP-
t!ou OF their circulation oy Treasury
notes. The simple tact that the circuia-
'iar Ol the national banks has taI'cn from
$500. SS4 o. December /, 1874. % $780,
J0J, 900 al The present time proves that
Oh. profits on circulation are nOt - great
.-- JJ make !, aE iLdUcomont Tor bankers
To- keep their moDcJ employed IN the
business. Mon DO not withdraw their
capital from business which affords
large pron,s.
But the question OF monopoly and the
profits OF usl1na. banking can bo more
definitely solved, The par value OF the
United states bonds held by The Treasury
tor -tcurly %, national baaA circulation
is $40. si1, 100. 90 which aDou, SoO.VU0,-
Uoo bears 6 per cont. 500 90 200 . per
cens.. and the balance Z and : l. per
cent Tho annual interest on these bonds
is SI1,.5>.-Jl The amount % bank cur
rc.cy issued upon the bond, above mem
toned D, SSH .GIg. 1855. On which theye is
tax ot one peg cent, called me tax GA
circulation. amounting 10 -, ITO. ~
trum tDg gross amour, ot circulation
must be- deducted b per cent, The amount
retained IN The Treasury a. a redemr hon
ilnt. leaving 500 I5o. SIS - tue ayai.a-
ole -m III, o. money 10 b. used 10 oanh-
iu4 purposes. ITO Average ra,e OF inter.
est throughout jle cQantry l. > per ccuL,
and estimating Ile income " the c1ca.N-
zion az that rate, We have - tS5 ,o39.
The above may be more concisely stated
Us follows
Iri,-r-t ON sc+. .,---o t.rrriafiva 80
,.-r,-at i,r ..auum. --tc>,ou
IutcTrrt Uu bonds. tst'7-'i
Total income. su.ssislo
Less .tN ou r.s, uIA,."u. -'t1'i'
>et income Oh capital. ssusIe.
o., came capita. tte blonde a. : ger
Gems. yer aunHm w0nII cas-. @'"-'N1S
-'I.s'De. sso,5 50
From the above il va. appear tAat the
value ~ circulation "a National banks,
could their money be kept loaned out al.
tls Time. would DC about -, 100 900 on a
,ap..aIoi over $j65 900. 600 G he currency
va.ue Oh Inc bonds) or a htIle over II
per cent.
/, must be admitted ,hs' his Is not =
veGy rulnous monopoly, even a there we're
uo mitigating circumstances but when
we take into consideration the fact that
the stock upon which this circulation -
based, valued IN 1876 =. s,Ol,'oo 600,
wSs made To- pay STATE aud municipal.
taxes aggregaliag SS,1OL152. UE 2 POI
cent. any candid man will TAI. 10 see
where the charge that the Nation u bank
!1g system is excessively burteusome 20
.he people and tho business and industry
oitLe country fairly comes IN. When one
looks d, this sublec. ia is true .lKht he
viii iiod that The only United States bonds
which are taxed Indirectly are those
which are held by the Government as Sc
,Jrtv Tor bank cirCulanOu-tha, tue tax
cu circulation (3.1lG.OpO) aai on bank
stock by local authority go, 1Ol,OOO) Is
to All intsnts snd purposes a tax on the
Government bonds, which Sre 10 tsct the
only property upon which the business Is
based.
We have not alluded To- The many al
Nantages which all classes OF people IN
TINS country derive from the National
banking system, such Is the general cur
reuCY vt tire bills % NallODai OanSs, the
sums oi money saved by business men
when wears ago they were compelled 70
nav As discounts on state bank oils, and
tho mH.iOns lost Oy al Classes, and The
Government, through the failure OF State
hsua, These considerations oi them
selves would convince candid men that
even n the National banking system
afforded 40 revenue and cost the people
several millions annually, Il could not be
wisely done away with.
We look AZ this question from the pop
Mar side and from that aspect We be-
leYe that the national banking systym Is
INC wisesJ, sales. and in every way the
best ever devised. To-day the class
which would be least injured by the
withdrawal of the circulation OF national
BANKS would be those men whom demA-
zOgues donOunco es bankers. The chief
revenue vi all banks is derived from
loaning their deposits. Should their own
circulation be taken from them they will
continue business Just the same and ask
as high rates OF interest as now. They
will, moreover, have their own bonds at
their disposal, and the country viii
lose over 500. 00O, 900 OF property now
heavily taxed as National Bank stock.
When sensible people come 10 consider
this su5jec. 10 al It's bearings they will
5e forced 10 conclude that this cry against
the national banking system has been
raised 10y ignorant or unpriueipled dema-
gogues for political effect.
In the last moments OF The session,
ex-DoOrkeeper Polk got q vindication
with two months extra pay. The rag.
tao and boblail OF the House declared