Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1879-09-26

operations of the bank Itself, has been a
period OF extraordinary proit 10 il ana
It's stockholders.
Our national banks, with capital of
S49l0lu,00o divided Si7,000,o00 IN 1876,
and $4,000 900 in 1877, the two most lis
astroGS wears 10 the business of their
customers since 1858. The statistics
Of ll9 national banks in Boston, New
York, Philadelphia and Baltimore, show
an SEXUAL fall in the prices Of bank stock
between 1874 ana 1873 OF about 5iS per
cent. hui, meantime, everything which
money buys fell over 30 per cent :, which
shows that the wealth VI the shatehold.
ers OF national banks has increased in re.
lalion 10 other property about IS per cent,
in the -Four years OF disastrous prepara'
ton for resumption
Mr., Sherman praises the national
banks for their loans 10 the people OF
$3.50 o0O09o, Where did they get the
moneys Their whole capital is only
$i1o,0o0,0o0, and that is invested almost
entirely in United States bonds, on which
they draw from to per cent, interest.
How did they get $3.50 900 eco Of paper
TO loan. They get $3sS, 100000 by having
the United States print their promiSory
notes. Who else have the Ugh privilege
of having their debts made legal tender
t1r public dues aud OF drawing interest
ON the loan OF them, You, my friend
mako your note for 500 and give il 70
your neighbor for debt, but you pay
from q to 10 per cent, interest on il. The
national bank makes its promisSory noe
which is equally IA evidence of debt,
and gets interest on it, That accounts
for $32S 100000 Of the $3.50, 900 600
which these benehcient institutions fur.
nish 10 the people at from s Ia ~ per
cent. per annum, discounted quarterly.
The balance OF the $3.50 600 900 is made
up of other people money deposited for
safe keeping and loaned ~ an equally
eXorbitant rate OF interest Is il any
wonder that the national banks can pay
10 per cent. dividends and lay up 4 or 5
per cent. surplus each year, even when
all industrial enterprises are pcrishing
and their capital being consumed But
do not see in this y reason, as Mr.,
Sherman does, why the $l0,o0o,oo0 sub.
sidy paid each year by The people 10 the
national banks should bc stopped
Take slate and pencil and figure on
this problem A national bank with
100000 in greenbacks invested in per
cent. bonds in 1866 received $4,000 Of
circulation. lfy0u assume that the cir.
culation and interest on the bonds be
loaned at 8 per cent. discounted quarterly,
the bank could now Gloss up lis bond
and circulation account and pay off its
circulation and return its capital TO It's
shareholders, and in addition divide
among them $32S,000. assume that in.
terests on deposits will cover expenses,
taxes and other shortages. This S32S,0U0
is worth Us much now as double the
amount was worth in 1866 When we
reflect than about $3.50 100000 were set To
sccumulating under this national bank
system thirteen years ago, We can account
in part for the impoverShment of the
people AID the enormous aggregation Of
wealth in the hands Of the few which
have been going on since the war.
Banks graciously loan vast sums TO tho
people, says Mr. Sherman. Just So.
Banks support the state, said a French
satirist, Just AS \ rope supports a mSn
who is hanging"