The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1881-03-23
THE NATIONAL BANK RAID ON
CONGRESS.

The defeat Of the refunding bill, passed
feated by the National Banks through the
agency of r. b. Hayes, the perjury-made
President, was in all of its parts one of the
most infamous outrages ever perpetrated in
this or any other country. The simple pur-
pose of the refunding bill was to reduce the
burdens Of taxation Sis, 100000 a year by
reducing the interest on the public debt
that amount. This proposition was fought
all the way through by Republicans; still
they could not succeed The bill passed,
but ii did not become law, and the tax
was not reduced. Congress was deaf to the
appeals of the banks. 1t maintained its in
dependence. 1t was proof against bank
bulldozing. Not so with Hayes, and now
the more the matter is examined the more
infamous does it appear. A correspondent
of the st. Louis Republican lets in a little
light upon the nefarious transaction, and il
is one that the people should thoroughly I'M
derstand. The man who gave direction and
force to the movement was II. C. Fahnestock,
Vice President of the First National Bank
of New York, and the man who has had
of the Treasury Department than any other
person in the country. The correspondent
of the Republican says:
In his bank Mr.. Moulton, Senator Sherman's
brother-in-law. is a large stakeholder. and the
bank and all its shareholders owe the fortunes
they have made through the bank to its connec-
ton with the Government Its peculiar relations
with the Government have often been comment
ed on in the newspapers, but the figures taken
from the reports of the Comptroller of the Cur
rency will give clear idea of how much profit
those relations have been, and how finely John
Sherman has stood by this petted corporation.
The First National was the leading bank of the
Syndicate which placed the per cent. loan. II
has capital of 5000 not being one of the
large stocked banks of New York City. It's COM
mission for he sale of the Is amounted TO about
500, 600. The statement in the Comptroller's re
port shows an entirely unique character of bust
ness, resting as il does on Government transac-
lions, Although its capital is only 500 900, its
resources last year were so, 1885, 99.SO. This
figure is four times as large as the bank in New
York with the same capital having the next
largest amount of resources, and five or six
times larger than some banks having equal cap
ital 1t is from one to twelve millions more than
the resources of any bank in the city having
twice the capital Only seven banks exceed 1t, as
follows:
Capital. Resources
National Park Bank. .... 81 OOO. 900 s24 $40, 55s
National Bank of Commerce. 100000 $751;, 100
Metropolitan National Bank. 100000 %, 95o, al
Importers and Traders Ma
tlOnal 1,JOO,OO0 81, Az 144
Bank of New IOrk.............. 0OO000 1854 76S
American Exchange National
Bank
Fourth National Bank. 200, 600 1871, 9l6
Only one other bank in the city. the National
Bank of Commerce, which has S, OOO, OOo has the
large surplus of $1,000, 900. This represents an
increase of the wealth of the owners of the First
NatiOna! Bank by 400 per cent, in addition to the
which have been declared. In one
year. from 1879 to 1885, this surplus just doubled
Banks with twice the capital are content to count
their stored up surplus by the hundred thousand.
Banks with four times the capital have a little
more than fifth of the surplus of the First
National
Here we have the same old story of Sher-
mans pet bank. 1t has grown fabulously
rich off of Government spoils, and was
finally able, by the profuse use its wealth,
to defeat the expressed will OF Congress in a
matter of vital importance to the people If
such transactions do not alarm the people,
and make them demand that the power of
vast corporations shall be ABRIDGED, then it
May be set down as fact that they will run
this Government.