Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1879-08-23

fits now afiordedby banking, the people who are
so fully protected, ought to rest IN ease and
quiet, land that the banking system ought to com
mand the support of the whole body and bulk
of the community. But the restless, uneasy
and turbulent, will not have rest and content
mcnt under any circumstances, and will seek
change of any existing condition of things,
even Mt the expense of their own interests.
They are ready to pull down the pillars of
the temple albeit they themselves perish in
the ruins.
The opponents of national banks deceive
the uniformed with the specous argument
that the whole circulating medium of the
country should be furnished by the govern
mert, by which national banks would become
unnecessary, and a great saving thereby eff
fected. 1t is true that greenbacks issued by
the government would be Just as safe AS ma
tional bank currency, but no more so; and if
the furnishing IA currency to the people were
might have some weight. But the extinction
of national banks would be disastrous, be-
cause it would destroy the convenient means
of transacting business at remote points,
commit banking to the hands of irresponsi
Bile private bankers, and substitute in the con-
troll of money capital, for fair and reasonable
bank directors, who are generally interested
in the business prosperity of the community,
the shylocks and msers of country towns
and isolated localities. Exorbitant rates of
interest would then rule the day, and the hard
and relentless demands of the greedy indyid-
ual money lenders of fifty years ago, come
back to us
But the oraces of the grecnback pcrsua-
sion tell the people that by the extinction of
the banks and the substitution of the green
backs of the government for national bank
notes great saving of taxes will be effected.
Let us see how this is Take the city of Au-
gusta rs a fair illustration. The aggregate
capital of the three banks is just $780, 200.
The aggregate amount received from the gov
eminent the past year in interest on the bonds
constituting their capital stock is So, 800
The aggregate amount paid in taxes to the
government. and assessed by the city, is S21,-
1882, leaving profit to the three banks, Of
3,14G.3S, or about "a of one per cent. on the
capital invested, not enough to pay the run
ming expenses of the banks by one half. A
portion of the bonds which constitute the
capital stock of these banks bear six per cent.
interest and a portion five per cent. When
these bonds mature, as they will in 1881, the
banks will be compelled to bank on bonds
bearing four per cent interest, and if the rate of
taxation remains the same as now, the receipts
from the government in the way of interest
will not pay the taxes imposed upon the
banks. The banks will then, as in fact they
do now, depend upon the profits on their cir
culation and deposits for the means of max
ing dividends to stockholders. Except in
large cities, the average deposits are small,
and as a rule, the banks in Maine as now sit
uated, will find it difficult to return to their
shareholders more than three per cent. semi
annually, and not so much if subjected to any
losses by bad debts. Is not this view of the
case a sufficient answer to the unfounded
charge that the banks are in receipt of double
interest on their capital stock?
Assuming that all the shares IN the capital
stock Of our three city banks are assessed
here and pay their taxes into the city treas
ury the amount paid by each will be as fol-
lows