Oxford Democrat. [volume] (Paris, Me.) 1833-1933, 1882-06-06

the other hand, Tor the privilege OF re-
ceiving and loaning 666 millions Of de-
posits, the banks paid tax Of $780,
945, or only 7 Of per cent.
If, however, the tax on deposits should
be dropped from the calculation Of profit
and loss in the proposed substitution Of
Treasury notes for national bank mates,
there would still remain loss of sc, $685.
034 in taxes, against saving Of 81, 49,
900, leaving an apparent profit of only
about one million Of dollars for the labor,
expense, responsibility and risk involved
in issuing Sl34 millions of Government
notes. And with 8 per cent. bond the
profit would entirely disappear.
LOST AND DESTROYED NOTES.
UNIFORMED persons have occasionally
charged that banks obtain the benefit Of
their lost and destroyed notes. This is
not so. The Government receives this
benefit under the national banking sys.
tenn to the same extent that it would by
a Treasury note issue. No bank can
withdraw its bonds except on deposit
Of coin or legal-tenders faster than its
notes are returned to the Treasury and
Cancelled; and the bill before the House
provides that when the circulating notes
OF any bank are reduced to per cent.
then the bank shall pay to the Treasury
that amount Of coin or legal-tenders.
TREASURY NOTES EXEMPT FROM TAXA
There is another serious pecuniary dis
advantage arising from the proposed sub
stitution of Treasury notes or greenbacks
for national bank notes to which ! direct
attention. National bank notes in the
hands of citizens are taxable under State
authority to the same extent and in the
same manner as coin. But Treasury
notes or greenbacks, as we'll as all other
forms Of national Indebtedness, have been
held by the United States Supreme Cour.
to not be subject to such taxation. The
Government receives the benefit of the
exemption of national bonds from taxa
ton in obtaining loans at a lower rate Of
interest. But the Government receives
no such benefit from the exemption OF
greenbacks.
In view Of the fact that an increasing
number of taxpayers in all parts Of the
country convert their money into green
backs at the time of assessment to escape
taxation, the issue of $4,000, 900 more of
Treasury notes exempt from taxation, In
volving possible annual loss of e5,-
500, 900 of local taxes, would be great
injustice to farmers, merchants, manu-
facturers and others whose property is
open to the assessors, and would make
the loss by the substitution Of greenbacks
at least $4,000, 900 annually.
OTHER ALLEGED ADVANTAGES.
1t is alleged that the circulating me-
dunn belongs to the nation" and not to
banks. And so it does in the sense that it
should be coined or issued under the au-
thority, imprint and regulation of the
nation; but not in the sense that it
should be owned by the nation and doled
out as a majority Of Congress may offer.
The Government does not buy gold
bullion and fix the amount to be coined.
1t allows any holder of gold bullion to
bring it to the minis and have it coined.
1t is asked, "Would you have Con-
gress surrender to banks the power to
control the volume of money y Gov
eminent has no business to fix the vol
ume Of money, and never does do it un-
der a well.regulated currency. No gov
eminent ever attempted to control the
volume of money. The volume Of mon
ey is always left to be determined by de-
mand. The government does not determ-
inc TIE volume of gold coin. Holders of
gold bullion, influenced by demand, do this.
The same principle Of regulation Of vol
ume by demand ought to apply to credit
currency.
"Do you assume" asks the gentleman
from Missouri, Mr.. Bland, "that the
directors of national banks can determine
the volume of money needed better than
majority of Congress ," What 1 say
is simply this : that neither Congressman
nor directors of banks can sit down be-
forehand and determine by any calcula.
ton how much money will be wanted by
the people of this country year or even
six months hence. The volume of mon.
ey required at given time is determined
by the unwritten law of demand and no
man, no body of men, is wise enough to
determine what this will be until it be-
gins to disclose itself through the pulses
of business. The volume required va