Orleans County monitor. [volume] (Barton, Vt.) 1872-1953, 1878-08-26
THE NATIONAL BANKS.

to the enemy.
A national bank is corporation do
ing banking business under the authori-
ty of, and according to the rules pre-
scribed by the government. The capital
stock of bank consists in government
bonds. These bonds, whatever kind
they may be, are deposited in the United
States Treasury, and are held as COL
lateral security by the government.
which by the Act creating the national
banks, becomes responsible for the pay
ment of every bill or note issued by
the banks.
10 make the currency or bills of
bank still better than greenbacks, or
other national notes, the Act makes
every individual stakeholder in the
bank responsible for the Indebtedness
of the bank, and for the redemption and
payment of every dollar it issues. So
that while greenback is only an ire
deemable pledge of the United States,
bank bill has the United States pledge
and the property Of the stockholders of
the bank to guarantee its payment.
Hence there is no question in regard to
whether genuine bank bill is good
or not, wherever it may be found. No
kind of currency, except gold itself, can
be better than national bank bill.
But those who want to cry down ma
tional banks and create some uncertain
kind of banking system as substitute.
claim that they are a burden to govern
ment and to the people; that the people
are paying the stockholders very heavy
rate of interest on the money loaned by
the banks; that these money institutions
are really sapping the country Of several
million dollars annually, and that gov
eminent loses heavily in the payment
of interest on bonds, on account of ma
tional banks.
What is the truth in regard to
these statements In the first place, gov
eminent is indebted to the stockholders
of banks for the amount of government
bonds held by them.-it is indebted to
every bond holder for his bonds; gov
ernment pays bank, government bond
holders the same interest that 1t pays
other bond holders, and so there is no
gain or loss to government or the public,
on account of the bonds which are held
by the banks. They were not issued
extra for the accommodation of the
banks, but were purchased from other
holders and made the stock of banks
That the borrower is paying the banker
double interest, the only answer neces
sary, is that every borrower hires his
: money where he can hire 1t cheapest
and he is at liberty to use or discard
!, banks as he likes.
Now how is it in regard to individuals
or to the public? Unless a nationa
bank loans its money at higher rate o.
interest than other banks would loaI
their funds, the patrons of nationa
bank arc not robbed or absurd. TIL,
only reason why they patronize thu
banks, is because they afford them al
opportunity where they can do banking
: business to their personal convenience
and advantage. Another system o
banking would not lower the rate o
: of discounts, because the rate of interes
! does not depend on banks, but on thu
: amount of money held by capitalist
which they wish to loan. and the condi
ton of business which calls for none,
az certain rates.
AS to the statement by certain Demo
Gratis and greenbackers that banks ar
receiving extraordinary profits, figure
show that many of them are doing bust
- ness at loss and that many are re
., ducing their stock. Those who care t
Of consider the matter will see that th
t. above claim in regard to the profit O
q: banking must be mistake, else capt.
o alists in all sections, would be formin
L. new banks, and putting their capital a
see work where it would pay large dividends
IL Few new banks are being created.
e To recapitulate, we state that no sys
tenn of banking ever furnished SO SAT
}. and so convenient kind of circulatin
" medium as the present; that the oft re
peated claim that national banks al
ss very profitable institutions, is negativel
d answered by the fact, that the amour
sr of national banking stock is CONSTANT
.. diminishing; Thirdly, government
a. not losing money by the banks, but
J.; receiving from them heavy tax, and
/. not compelled to issue greenback cul
Y. rency to take the place of bank currenc,
J. at cost of million and half ANN
+; ally. Lastly, banks are not Robin
e, individuals, because they are not con
e, PEELED to patronize them, when the
D. can do better elsewhere.
a. This great hullaballo about nations
TX banks is only gotten up at this time
n, the interests Of those who expect
n. make political capital out of it. 1t