The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1879-10-17

had q talk a few days ago with farmer
Black, who is a favorable specimen of a Green
backer, being an honest man with no axe to
grind. and really desirous of being in the
right. An industrious man, good farmer,
but as little acquainted with banks and with
finances as he is with Sanscrit. As to the
banks, this is the way he put it:
''Look here now, think the banks are mo-
nopolies, and all for rich men, who make great
profits unjustly, which come out Of poor men;
that's why object to them''
eyes; know you have heard this said by men
whom you trusted to tell the truth, and who
were well acquainted with the matter, as you
supposed; but they were either ignorant of the
subject, or they wilfully misled you. The
banks are not monopolies; anyone who will
comply with the law may establish one; they
are in no sense for the rich classes OF society,
except that such persons may put their spare
money into their capital stock If they choose
but this money when so invested. is exclusive
ly for the use andbenefit of the business clsases
of society, for men who have integrity, activity
and business capacity, but who need capital in
their affairs. This help they obtain from the
ties, rather than upon that of the small means
they may have. The abolition of the banks
would be entirely for the benefit OF rich men,
because the great bulk of the business OF the
country would, in that case, Immediately fall
into their hands. Or, on the other hand, they
would be lenders Of money to those who need
in in carrying ON their business. And this
money would be doled out to business men at
varying rates of interest, according to the exi-
gency of each case. You object to banks also,
because they make large profits, as you say,
too large profits, you mean. Now, some of
these banks have failed, losing large part, or
even all, of their capital others have lost
largely, though they have not failed; others,
finding it Improbable, have surrendered their
charters, and wound up their business; others
have given up part of their capital, and have
carried ON business on a smaller SCALE But
the people have never lost dollar by these
failed Or crippled banks.
Some of these banks, located in flourishing
communities, have done profitable business;
but this has been due to the integrity, the
prudence and capacity of their managers;
while those banks managed by restless and un-
SklllIul men nave ufJ Deeu SuCCcoolui' Ao %
rule, the capital of the banks is not owned
chiefly by rich men, but by widows, orphans,
single women, men of moderate means, by
charitable, benevolent religious societies, and
often by educational literary and scientihc
institutions. So you see that you have been
misled by ignorant or designing men,
Some of these men are moved by
low envy, jealousy or hate. They feel
sore and sour at the success OF others In business
enterprises They hate to see men in fine car
riages while they have only wagons, or per-
haps do their riding on foot. They feel pros
perity in others to be a personal wrong to
themselves; in short they are communists, per-
haps unconsiously. Now, what is there unjust
in the profit of these banks, even if they have
been large?'
"Well, this is the way look at it: A bank
puts hundred thousand dollars in United
States bonds into the Treasury, and receives
in return ninety thousand dollars in bills.
The bank continues to draw the interest on
the bonds, and when the bills are put into cir
culation, the bank makes six per cent. on
them, so it makes twelve per cent in that way
and that's too much"
mo, you are mistaken, the bonds pay now
but four per cent"
''Well, call it four per cent, ana tnat Is
ten per cent. for the bank to make, whlcn ID
too much. The banks ought not to receive
any interest on the bonds that they deposit as
security for their circulation.
Let MS see about this, and find where the
right of it really is. The bonds are merely the