The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1882-05-04
TO NATIONAL BANKS IN REFER
ENCE TO CIRCULATION.
once OF Fisk 4 Hatch, No. s Nassau
st. New YsEk; April IL, 1884,.
can We Afford 10 Take ont Circulation
With ssEonrsv 1t 12OS

We presume this question ii agttatlng the
Officers and Directors OF nearly every National
Bank In the country, as well those who have
Yours already deposited In the Banking Depart
ment at Washington Us those who have Con-
tinued Skies calle or 30 soon to be called. ana
also the holders OF the Continued Fives especi-
ally the high numbers, tn. secretary Of the
Treasury having announced the probability that
he will ,e&nmenc. calling the Continued Fives
In september, beginning with those last issued,
l. e., the highest numbers
In answer TO the query at the head OF this elf
cular, we would say that National Banks can
secure their circulating notes With Fours Up 70
100 and still md that 1t will pay.
rirst ve win Illustrate the position OF Bank
having ifs circulation based on Fours, and see II
II will pay to give II up.
4 bank with capital Of 8. oOo 900 having It's
fuIl amount or circulation out, secured by per
cent. Bonds. receives IN income as follows
,Oo0 u per cent, ssS. So
Gross Income !. 1890
Deduct per cent. tax on CircuationvS,O)
Expenses Of Printing Notes, Express -
Yearly , Sin FUND 30 wipe out
Premium IN 3 years, Say ....... .7,OOo.
1890
n Income with Circulation. sGo. 200
fthe Bank cells irs Bpnds and rctircs its Cir
culation, its income vii! he as follows:
Proceeds OF ss9o,OOO Tour-per-cent.
Out so of which HI the bank must deposit in
Washington TO retire It's notes. 6D,O0
Leaving money to invest. sos, 900
ssss.oCo invested at per cent ......... 1s,4oo
Deduct one-half OF one spar cent tax on
Capital not inycStetfn-l. " BOndS.... ,00O
es,4oo
TO which add Income on ss0o.Ooo represent
ed by the circulation outstanding, ut
pPr ccnt... ........................ sO,oVo
] income with EXPERIMENTATION. .......4 ~, go
With Fours At rs the pronc would BE-. ...s
y, m enc ro cnse nroydnc for sinking fund sum
5aiiicient to retire the premium In . years.
II these calculations are correct, Banks would
still make profit with Fours costing i3o We
expect 70 see them between 1875 and 49, before
the Con .lDurd Elves are all redeemed. 1t Il
getting difficult now to secure round lots, and It
will become more and mvrc so IS the reduction
in the volume Of the United states Bonds out
esanding goes on, and as the helders Of the Con-
unued Ftves and skies come crowding In for
them, to secure more lasting investment.
Lct US reverse the figures and suppose Bank
with 81 100 900 capital desires to II II win pay
better to loan Its capital direct OF through the
medium OF circulation with Fours at 100.
81 ,0OO0O Capital loaned at per cent $50, 0N
Less one-half OF one per cent. tax on
same, not being invested In Z. s. Bonds 6,0O
|. Income with out circulation. j. .eg,OO(
Int, on 1sao ,ooo.Pours coating o. .ooo S, oo
|" 100000 Circulation loaned At per
SIS, co.
Less deductions, as in previous table. Is, 10
Income with circulation. ........ so0, 20
Less per cent. on t6S, zoo, the amount in
vested In fonrs over the 81 QUO Capital 3,
Net income with circulation ........ SO, 90
With Fours at 49, the ret income would
with Fours IL 100 the net income would
De............ ......................... $500
Az we have often stated, the credit OF tn
United States has become second TO that OF n,
nation OF the world. We now believe II vii
soon advance to q basis OF ~ per cent. per an
mum on the investment; In other words that
i bond Of the United states, having 3 years Z
run, bearing * per cent. interest, would sell o
par. The equivalent would be:
l2..40 for the Fours.
1850 for the Four-and Halls:
We shall be prepared TO furnish any Govern
ment Bonds af.the market prices, and make x
changes 1t Washington without charge.