Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1879-01-21

The Indictment against the national
bank system, contained IN our minority
democratic governors inaugural message,
charges that the system practically gives
the capitalist double or treble interest on
his investment, thereby increasing the
burdens Of the people, who receive IN re-
turu no valid compensation II the
phrase double or treble interest" Is to be
understood in It's usual and obvious sense,
namely, as two or three times the ordinary
rate OF interest on money, then the Gov
ernor must have meant for the people TO
understand him q declaring that banking
capital, by reason Of ,he peculiar advan-
tages given 1t By law, Is actually bringing
lis owners from ten or twelve 10 fifteen OF
eighteen dollars annually upon every
hundred dollars invested. burdening the
people to that extent without returning
any valid compensation. l. 1t possible
that Governor Garce!on, or indeed any
other man Of ordinary intelligence, believes
this ? If banking under the nationa.
system were a monopoly, such profit 81
some times and IN some circumstances,
might perhaps be possible, but it Is not.
On the contrary, as Is well known, 1t Is
free 70 all who choose TO embark In It.
Any sufficient number Of persons, possess
IN in the aggregate the requisite amount
OF capital, may without difficulty become
organized as a national bank, and pArtic-
ipate in the profits Of banking, be they
great or small. If these profits were Is
or even 10 per cent, does any one doub;
that the number Of banks and amount OF
banking capital. instead Of constantly de-
creasing as they have for more than three
years asst past, would rapidly increase
Would municipal bonds, bearing only 8
per cent. interest, be at > per cent pre-
MUM. and in sharp demand at that price,
and United States 1 per cent. bonds find
ready sale at par, as now, if the money
paid for them might be invested in bank
IN and thereby earn double or treble
interest ?" Are capitalists so directly the
antipodes Of what they are represented to
be by our democratic friends and their
greenbsck coadjutors, that they are willing
to lOan their money Tor per cent, wheD
they might Just a. easily invest it where
il would earn four or five times that rate g!
These questions answer themselves. Men
having capital TO invest do not voluntarily
place 1t at such cheap rates if they can
safely invest it elsewhere at large profit.
The fact Is, as any intelligent man
DESTROYS Of knowing the actual truth of
the matter may easily learn, If, indeed,
there Is any such man who does not
slresdy know Adjustments in national
baLk capital are reaping no such fat har-
vest as the message alleges. The state
menI referred to Is more than extraya-
gsDs; it Is absurd. To be sure, the Gov
ernor refers to the COmptroller's reports
Is eorroborating him on this point, and
be does this With al off-hand, ex cathedra
manner well calculated, if not intended,
to beguile persons who did not read these
reports, especially if already prejudiced
or ready to be prejudiced against national
banks, into accepting his empty reference
as equivalent 70 proof No one will ques-
ton that the repo IS Of the Comptroller
are the very best authority in matters Of
this kind, and We are gratjfed that the
Governor has put them into the case,
especially The report Of October last,
which he particularly names. Unfortun-
ately for him, however, the. reports, IN
stead OF sustaining the extrayagant declaI-
alton We have quoted from his message,
fatty contradict it. For instance, on page
II Of the October report, the Comptroller,
speaking Of the profits Of investment in
banking, says, Even during the most
prosperous years Of the system the ratio
OF annual earnings 70 the combined capt.
Ia and surplus was not greatly in excess
OF the usual legal rates Of IL ,erest in the
States where they we're located" And
Oh pace Ii, he says, 1.-The ratio to capital
and surplus Of the net earnings Of all the
national banGs was In 1876, O. 9 per cent,
in 1877, SO per cent, and in 1878, 81
teE cent, or an average Of less than SIX
per cent. per annum for the three years /;
Nh..e in the New England and Middle