Grant County herald. [volume] (Lancaster, Wis.) 1850-1968, 1880-12-23
The Perlls Of the National Banker.

Mr.. EDITOR 81 perceive from
your late issues that you are disposed
to create boom in favor of national
banks in our enterprising city. We
have got a railroad, wooden factory,
BARRIERS shop, bakers shop, a de-
pot, elevators, round. house, almost
everything that can adorn or set out
young city, palpitating and almost
ready to "bust'' with energy and en-
terprise 50 see you are proposing
some national banks here by showing
US we can realize some Is or more
per cent. for our money. Now here
is a chance. Our merchants say
they do not realize Is per cent. on
their capital, and / cannot see exact
ly why the stupid dolts don't bring
on supply of national banks instead
of blue jeans and calico. 1t is easier
and more genteel to handle bank
bills than cotton and worsted fab
RIGS. 1t only requires $50, 900 to start
Some of our money jobbers and lend.
ers have that sum and are glad to
get per cent. for it. Some of our
farmers are rich enough to run as
many national banks as a Mormon
ought to have wives; that they have
not plunged into this mine of wealth,
Mr.. HERALD, is because you have
hitherto refrained from showing them
exactly where to find Doug. divers
goose, ooslings and ALL
thought our senator, who is
banker, ought to know as much about
the profits Of banking as the HERALD
| wanted to know why he did not
clutch at the golden apple that CLOVIS
on the national bank tree. He puz-
zled me with great many questions
could not answer, but / know the
HERALD can. AS / understand, Con-
gress has limited the amount of ma
tional bank paper to some figures be-
tween three and four hundred mil
lions of dollars; nevertheless the
holders of bonds have seldom seen
fit TO invest as much in that way as
the law allows Comparatively a
very small amount OF the national
bonds are invested in banking. The
amount can be found near enough by
adding 10 per cent. to $50 millions
Either bondholders are not enlight,
ened on the subject of banking as the
HERALD man is, or perhaps banking
like other business ia not so profita.
BILE in reality as it is on paper. Most
establishments prefer private bank
ing, and are very shy of the national
bank trap unless in places where the
daily deposits will be adequate to
protect the banker against all runs
and trials of his credit. So if he
does loan out the bills he gets from
the government, he must lose the
interest on nearly as large an
amount, which he must keep on
hand for the purpose of redemption.
The national banks are institu.
tons which cut up the national
bonds into such shape and such
amounts, that they answer the pur-
poses of money, and that too with
out increasing the debs Of the Uni.
ted States. The United States will
redeem the outstanding bank bills
by selling the deposited bonds. IF
The whole of them should fall with q
crash it would not affect the United
States nor the bill holders to the
amount of copper.
But the idea of issuing some hun.
dred millions more of greenbacks
adds that much more to the debt of
the United States, and to keep them
equal to gold and silver, if above
our national reserve, would impose
on the government the burden of
keeping gold and silver enough on
hand to answer at any moment all
calls for redemption.
STATE BANKER.