Belmont chronicle. [volume] (St. Clairsville, Ohio) 1855-1973, 1878-11-07
The National Hanks.

| tiOnal parties made the air vocal with denun-
/ Citations of the National banks. 1t was
charged that they made exorbitant profits;
that the value of their special privileges was
enormous; that they were ulcers on the body
polite. draining the life blood of the cOmmu'
nifty; that their surplus revenue was the
resource of the Republican party from which
money 10 hire orators, corrupt the voters and
/ pay campaign expenses was copiously drawn;
Z that the working classes were being crushed
to enable tie banks to flourish and their
stockholders to roll in purple and fine linen
and fare sumptuously every day. All this
sounded finely on the stump, and served,
when other material was scanty, to arouse the
passions of the poor. But it was after all
only boss and the poorest kind of twaddle
when tested by the light of truth.
The banks in reality care but little for the
privileges granted them by the Government.
/ The entire profits made by the National banks
Of the United States upon the capital employ
! ed did not average five per cent. during the
| last year. Since the passage of the law en-
abllng them to retire their own currency, they
/ have voluntarily withdrawn over $50, OOO, OOO
! from circulation. In New York the stock
! holders Of tn National Banks of Commerce,
Metropolitan, Merchsnts, and other institu-
/ tions have reduced their capital stock to an
amount exceeding ten millions of dollars.
! The Merchants Bank of Cleveland, one OF
! the soundest and best institutions in the cOun'
/ try, last week by a vote of its stockholders
reduced its capital stock from 81, 200, 900 to
! SGOO. 900. So sar from the National banks
escaping taxation and getting enormous re-
turns from their investments, the contrary is
the ex act truth. The fact is that the banks
| in every State pay larger proportion OF tax
upon their capital invested than any other
class of property. In New York they pay
tax of about five per cent. In Cleveland they
pay over three per cent. The reason is obvi-
Gus. They are compelled by law to make
sworn returns. The Assessor knows their
exact condition The assessment for taxation
is made at the full and par value of their as
sets. Their capital is easy to reach. is well.
k0OWU. dilu lllC CtlOiSSoe ANAN ASA NAN
tax .gatherer The man who owns real estate
never finds his property listed for taxation at
above one. third, one half, or two'thirds OF its
actual value The man who owns personal
property like furniture, horses, carriages, sill
verware, or watches, never returns it to the
assessor at its cost or actual value, but at a
merely nominal rate The man who lists his
personal property of stocks and bonds takes
care to deduct a wide margin from its NOM
inal value to make good any possible depreci'
alton. But the banks can do none of these
things Taxatioa lays its heavy hand upon
them in its various forms, both State, mu-
nicipal and National, and they have no re-
dress. They are powerless. Other branches
of industry may escape with only a sm"i'
contribution, but the banks must meet all de
mands squarely and boldly. The result is
being seen not only in our own city, but in
the entire country. The banks are reducing
their capital and Withdrawing their circua-
ton. They are literally being taxed out of
existence. At this moment the capital en-
gagged in banking pays double tax over any
other personal property. The banks are .axed
at the face value of their capital, while all
other classes of personal property or real es'
tate are taxed at moderate estimated apprai-
sal. If any of our readers wish to understand
more readily the meaning of this, let him try
the experiment of returning for taxation for a
single year his entire estate, real and personal,
at what he in his heart really regards its actual
value. Then he can do a little banking busi-
ness Oh bis own account.
1t has been found by experience that banks
can make larger dividend upon moderate
than excessive capital. The State, municipal
and National taxes upon large capital absorb
the greater part of their profits. During the
last three years the demand for money for
legitimate manufacturing and commercial
purposes has greately fallen off. In New
York the sums of money lying idle on deposit
were simply enormous. 1t is estimated that
had greenbacks been convertible at the will
of the holder into 3.65 or four per cent.
National interest paying bond, TO be again re-
deemed on demand in currency, on the de-
posts of New York alone the Government
would have paid about 81 100000 yearly, or
| S12, 900, 900 of interest. This enormous sum
would have been thrown away by The Govern
ment during the last three years, and that
amount would have been directly taken from
the industries of the country. For a large
portion of the year the Merchants Bank Of
Cleveland held over $S0O,000 in currency
owned by its depositOrs, which lay absolutely
idle There was no legitimate demand for
its use for purposes of commerce, and its
owners left it to rest in security until called
for.
The truth is that banks are a necessity for
the public. 1t is impossible to get along in
any civilized community without them. They
are convenient as places where money can be
deposited, kept secure, or borrowed, as peo.
ple desire. Their bills should be made so Sc
cure that nobody can suffer loss by holding
them. Wipe out the National banks as Our
Democratic and National friends desire,
and what will be the result? Every State
will again charter banks, and permit them to
issue bills as money. The money willIget into
circulation. Some of it will be good, part of
it bad. Let but the price of a few days labor
in their money fall into the hands of a work.
ingman and fail in his pocket, and he will
pay heavier tax to support State banks by
that one operation than he has indirectly paid
to support National banks during their entire
existence. He will then realize that humbug
is after all a costly luxury to indulge in
TCleveland Heard.
CONSUMPTION CURED
An old physician, retired from practice