Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1881-01-18
Portland Advertiser.
THE NORTHERN NATIONAL BANK

Throughout every campaign since the Greer
back party came Into existence, we hear ne
publican orators yelling themselves h"af5 =.
OYER the burdens OF the national hanks "
one could believe these orators IL would appesr
a- n fact that the banks pay snch large taN
that little or nothing IL actually made IN the
l,auking business. The Oreenbnckcrs claim
that under the class legislation OF the Repub'
licAns there IL no kind 81 business more profit
able and with 80 few risks Our papers puo'
lish undisputablc evidence OF the facts they
assert hut the Republicans brush II all away
: a lie.
Now. we call attention 10 the publ shed fac,
that az n recent sal" Of = shares OF Northern
National Bank stock, OF HalloweI, IL was bid
OF nj 49,, sl5- and .l49 per share-par value
siOb. What makes this stock so much above
par and more valuable than other stock ES'
anime the laws enacted 10 protect the bankers
and YOU VIII ind an answer North star.
We are glad 20 see this evidence thst
the wholesome discussion OF questions OF
public policy i 10 be resumed in Maine.
Personal politics have too long excluded
every other consideration
The price OF the share OF Northern Ma
tional Bank stock j. 10 he explained. as
the North Star indicates. 10y the banking
law: but IL IS Il mistake 10 say that the
law was enacted 20 protect bankers. IL
was enactad 10 protect the public.
Everybody understands that the holders
OF national bills are protected by the law
which requires 4 special deposit OF United
States bonds In the treasury az Washing
ton, as security for the bills. IL Is not
so generally understood that the law re-
Quires surplus fund TO be maintained for
the protection OF depositors. Not only IL
the whole capital held for the payment OF
deposits, but the shareholders are individ-
ually liable for an amount In addition equal
10 the par value OF their shares; besides
they are required 10 set aside one tenth or
the net profits every halfyear until the sur
plus amounts 20 90 per cent OF the capital,
and no dividend can be declared until after
this deduction Is made.
A prudent bank would maintain a sur
plus fund OF its own accord; but the law
leaves nothing 10 the discretion OF the d.
rectors. The surplus cannot he divided
among the shareholders, on any pretext.
To provide for bad years, we'll managed
banks have reserved another fund, for the
benefit OF their shareholders, known rs un-
divided profits.
Now the capital belonging to each share
holder evidently consists OF three Items
the original capital, the surplus required
by law, and the undivided PROFITS volun-
tarily set apart for rainy day. And there
Is no privacy about any OF these matters
The exact condition OF every national
bank Is published five times year In the
home papers. and In more permanent form
in the annual report % the Comptroller OF
Currency This report for the Northern
National Bank, ut Hallowell. shows the
capital as follows;
Capital stock paid la. $l0o,0o
surplus fund, 9VO
Other undivided profits, A,ils
Totnl. slss,lls
When the shares OF this stock are sold
at 1877 TO lS9, therefore, they are sold at