West Virginia argus. [volume] (Kingwood, W. Va.) 1877-1946, 1878-09-07
FACTS FOR THE PEOPLE.
The Enormity of the National
Banking System Demonstrated.


From the Morgantown New Dominion.
To make it easy Of comprehension
let us take one single bank.
Suppose then, that single Ma
tional Bank has capital IN U. S.
Bonds OF 100000 aud that such
Bonds were purchased with green.
backs. worth sixty. FIVE cents on the
dollar, thus 500 600 are invested.
Now a gold interest of G per cent,
on this 100000 of bonds, is $4,000.
This equals 10 per cent in gold, on
the actual investment or cost oil the
bonds.
Now 6 per cent in gold worth
about II per cent in currency. Thus
II per cent on 100000, is 1000,
OF about 20 per cent on the actual
investment, or cost Of bonds.
Now this bank got from the Gov
eminent, $4,000 in National Bank
notes, to bank upon. This the bank
loaned, at say 8 per cent, currency,
making 81 200.
Now suppose the deposits Of this
bank to equal it's capital ($l00,000)
The comptroller says one third
more.
This deposit, the bank was au-
thorized to bank upon. and loan.
This at 8 per cent wskesi $4,000,
Then $1,000 plus $1,000 plus S.,
600 equals 500, 200, or about two
ffths of the entire actual cost of the
bonds, or capital Of the bank.
Now suppose this bank to have been
in existence for fourteen years, you
will see that said annual interest Of
26,200 multiplied by IA, equals
$4l6,800 or more than six times
what the bank paid out for its
100000 OF bonds.
Now these bonds are worth in
gold $4,000 or $50 more on the
800 than they cost, which equals
$4,000. This added to the $4l6,
800 make f466, 800, or over seven
times the sum actually invested by
SAID bank in capital,
And let it be remembered, that
this bank is not here charged with
its large profits in buying aud sell
ing exchange, nor in the buying or
selling of Government Bonds.
Then, let it also, be remembered,
that this bank is but one Of over
two thousand, and of much less,
than an average capital. That this
100000, is but small factor of the
large sum OF over four hundred mil
lion OF bonds held by the National
Banks as capital, and which would
make over four thousand such banks
as the one supposed.
Is there any wonder, then. that
these highly favored bondholding
bankers can 80 devoutIy turn the
whites of their eyes Heavenward,
aud in solemn sorded reverence
swear, that this Is the best directed
ad ministration the sun ever shoue
upon? Is there much wonder, that
their patriotism, and love of Justice,
10 so completely subsidized by their
self interest? And that they cry
aloud for the perpetuation of the
system that 80 rapidly, (though un-
JUSTIFY increases their store? A
system that in fourteen years has
multiplied their wealth more than
seven fold. Or, is it any wonder
that in forty millions Of oppressed
people, are now clamorous for the
destruction of such a privileged
monster of injustice and oppression?
A system that has enriched it's
favored few, more than seven fold
In fourteen years; and at the same
time, it, and its adjuncts, by its
legitimate fruits, have reduced the
value Of property and labor at least
one half what it was worth fourteen
yeors ago. Is it any wonder that we
hear the cry from one end TO the
other OF this once happy land, "let
justice be done though the Heavens
fall" Countrymen, trust in God
and look TO the ballot for redreas.