Mower County transcript. [volume] (Lansing, Minn.) 1868-1915, 1879-09-18


One Of the popular charges against the banks
is that they ''make double interest"-the inter-
est on their bonds and on their currency. But
this double interest represents their gross in
come, and out Of it must be taken all expenses
and Losses, incident to their business, before
We can know what the banks nsake-taxes, in
surance, salaries, officers and clerks, incidental
bad debts-last year was over twenty four
million dollars, and year before last it was over
nineteen million. The net profit Of the Ma
tonal Banks last year only averaged five and
one-tenth per cent. on the capital invested.
SOME ADVANTAGES OF THE BANKS.
They give an absolutely secured currency,
uniform in all parts of the country. Compare
this with the currency Of the old state banks
poorly secured-lAble to "break" any time
wouldn't pass away from home except at ruin
GUS discount-easily counterfeited, etc., etc.
of the average amount Of currency in oircula-
ton each year by the failure Of banks, for when
bank "broke" it's currency was worthless
This item alone amounted to about ten mil
lions Of dollars per year. Under the present
system there has never been a dollar of loss of
rity against counterfeiting that has ever been
devised.
SECURITY FOR DEPOsITORs.
The National Banks also furnish greater 50.
curity to dep0sitors than any other system ever
did. The total loss that all creditors of all the
national banks have sustained since the begin
ming of the system-1O years-is only &C. 64l5,-
429. The loss 10 the depositors Of five state
banks that failed in the city Of Chicago during
the years 1877 and 1873 was $s, s19, 800; and
the loss to depositors Of savings banks in the
State of New York during the last three wears
was over $3,000,OO 80 that the national
banks not only give q go"d currency but greater
protection to dep sitors than any other bank
ing system ever devised. Why is this? Be-
cause the law prevents the organization Of
banks without actual paid up capital, and then
the Treasury department keeps such close
watch on the condition OF the national banka,
compelling them to make quarterly reports, and
special reports whenever asked for, and making
them submit to exanninations at any time, that
it is almost impossible for bank to become in
solvent without the department knowing it in
time to protect depositors.
DIFFICULTIES IN THE WAY OF ABoL1sHINo Ma
TIoNAL BANKS.
The banks cannot be abolished without the
most shameless violation Of national faith.
Each bank Is chartered for twenty years, it's
charter to be revoked only when it violates the
law. The first charters were in 1858 none of
! them will expire before 1888 and the charters
issued during the present year will not expire
till 1899. Yet it is proposed to pay no attention
them at will. And it is proposed also to take
possession of the bonds deposited to secure
bank currency, and tell the owners Of those
banks that they must take fiat money or moth.
ing. This would be double violation of pub
Lie faith. The bonds are expressly payable in
ty and force payment In paper tickets would be
simply robbery. Again, the bonds are placed
in the keeping of tho government as pledge
for one specific purpose and to be returned or
certain specified conditions. For the govern
ment to take possession Of these bonds in VIC
lation of these conditions would be the crosses
kind Of an outrage-a direct violation of q M
tions contract, and could not fail to reflect dis
astrously on the credit Of the government ant
the business Of the country.
THE THEORY OF GOVERNMENT ISSUING ALL TIL
But suppose oil this were done and we hav'
adopted the theory Of congress issuing all tn,
money, what kind of = system would that be
Under the present general aud free banking
law, il more currency is needed In any commu
nifty at any time the banks Of that oommunit!
i can get It within few days. For instance
when they they have en- extra large wheat orol
In Minnesota requiring an unusual amount q
currency to move 1t, the National banks o.
Minnesota can get Just what is needed Just a
the time It is needed. II congress only couli
issue money this could not be done. Congress
might not be in session just when Minnesot,
needed moro currency, and if congress was il
session you couldn't get Z bill passed for tn
y purpose in six months. And how would Con
J gress know how much currency was needed an
! Just whore it was needed? Who, for instance
G would be willing to- leave it to the Judgment o
Col. Bouck to say just how much Gu, renoy ther
should be In this Congressional district? Doe
he know any better than the BANKERS who al,
fin the business and are Watching the condition
Of business to know the demands and keep th