The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1880-02-06

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AnA W. As4wAtN ~ HAVE t~l ssehi i'm
The iars that Wv elvAs~stehted lmhlie
MUD argue thAt n. notwithstanding
slesn heavy lssss~s, National l,AMAins
lrrnght sncA magnificent svtmsns N II
pct cent Pvt Annnm m the tts~hhnld.
-. II ought IN ~ klAcr,I III lhe head VI
The mrsl reliable u rsuAtal,le rnrsaits.
Nor dc~A NJ. kmuh aid his cANs~ Nv
drawing particular attention u The fsr,
that, Ia consequence III theee losscs.
81, hOO,tADO III lAnh capital paid no div.
iacmsls. and that very many ri The
hanks which have declared dividends
have been compelled ~ reduce them 10
rates which cannot hc considered 4
fair compensation Tor the use III the
capital rmrloycdss Tor Tho only infer
ence which can he drawn from this Aassr.
ton n that tin majority " The hanks
must, In spite ot thc had times. have
besa making extraordinary profits II
the whole d thsn, including thr
lame dnckA,s could average nearly
II per cont. per annum Of mol profits
on their capital stock. NJ. Knox trics
hard 10 harrow the feelings ii our IN.
sympathetic public with rcoilAl III ths
miaiurtuncs which bcfcll In per ccntMn
d tho whole number III bAnks, Init hs
has nothing to say about Tho exception
d good fortune which attended Tho 70
naming III per ccntum. lilo will tel
you tale &C TO traac cat about The
lronblea III badly managed LAnka, hnl
hc carefully guards against letting tht
public suspect tho existence Of great
many more which. like tho First Ma.
tionsl bank ri llethlehcm, Pa.
earned annually, from 1909 h
1870, On average net profit Of
81 per ccntum on their capital stock !.
that In 10 nay. thcir net profits Ia aix'
tccn years, after dcducting al losses
expenses and taxsa. amounted 10 ncarl,
thrcc and halt times the sum Of their
entire capital stock.
Another ingenious device rcsortcd X
by Mr.. Knox VI Tho dictalion oil Hher
man, Hhylock n o.. 10 hoodwink Oh.
people ~ ~ the true value oi ths
nationAl.bank bonanza. In his scrMpu.
lous avoidance, whenever possible, ol
oil allnaion 10 the net profits III tn
hanks on their capital stock. Through
out his whole report no part RI ths
letter prcas makes the slightest refer
cncc thereto. He confines himsel
wholly Ia thr dividends declared by ths
BANKS. Now, every bAnk.stock holder
knows that tho dividends are no indice
whatever 10 tho net proflta; for except
ing tho periods embraced between
March, 1870, and September, 1879, Chi
net profits from 1909 sl0wnwards grcatly
exceeded thu dividends declared, iii,
difference declared being retained by
tho banks under tho nan OF surplus
An an illustration. tho total dividend
for tho year ending September, 1879
amounted to tlD,ryOO. OQO, lint tho ne
earnings were su5.OOO,O 600 Or $4,000,
OOO over the dividends, n surplus cnna
to nh additional dividend Of 81 pei
cont. on thu entire average capita
stock 81 the national banks. Never
tholcss. Mr.. Knox ignores the million,
of net profits and contcuts himself will
marking down In hia tables tho ratN re
cent. 81 dividends OH tho capital stock
and then proceeds 10 argue thcreirou
on the appropriateness Of nationa
bankinG.
BY adopting this course Mr.. Kuo,
quictly ignores tho existence ri 1 3D. 900,
600 Of net profits carried to "sarplui
fund" account. when cndeasorinG Il
make tho people believe TINT nati0na
banking Ii BY no neans The terrible In
cubuS on enterprise and industry assert
cd by tn opponents.
There must be something very rot
ton In thu state of Denmark" when amcl
dishonorAhle tricks must be re.ortc | 4
for Tho purpose Of npholding tho iailin,
fortunes OF 4 political party. Tho laxit,
Of political morality IN this countr.
condonea tho rascAlity al satnrntinl
| campaign documents and rqnibn will
dishonesty and falschood; but whei
important Government documents, Ia
tended not only for present iniorms
tion, hut ~ material for the iutur,
historian, ARC subjected To the sam,
criminel treatment. tho oiIsnso calls 10
something more than more censnte, ant
those guilty u II deserve something
moro than public obloquy and conicmlt
III the x.4'lO national hanks lsoo 70
port On tho finance, page lla) organize,
between Feb. %, 1863, aud November
lS7H, only sixty.ninc freport, page i6A)
mp 70 July, 1874, failed; that II 10 nay
less than > per cent, In fifteen and
half years, II tho whole number 81 M
tional banks established became hank
rupt. What other bnsiness presents ii
exhibit 70 favorable a. thar An a
hlbit MI tho moro startling when "
tear In mind that tho last hvo al Oh
fifteen aud ! halt year. covered perio
u unexamplod financial depression
during which thouaAnds Of failures too
place IL svery branch 81 business. rang
Ing from 20 10 70 per cent. ol the Who'll
number ii firms engaged therein
whereas tho nalional.bank failures 10
tho Same hve years did not reach 2 pe
cent. Of tho whole number In opcratio,