The Greenville times. [volume] (Greenville, Miss.) 1868-1917, 1883-03-10


for circulation, s32l, 100000. De.
duct this from their unemployed
means and it is shown that they
have s2tO,70O,OOO of capital which
cannot be employed in loans. This
would leave of capital for loans
the sum of S249, ,404,213. Leaving
the surplus and undivided profits
as a reserve and the excess of the
deposits over their due share of
loans, as a reserve also, we will
have the excess of loans over de-
posits as Sl06,996, ,432. The banks
having only of capital that can be
loaned s24O, 100000, it follows that
all the leans, after allowing for the
reserve, were based on deposits.
The total loans being 1928, 1885,.
525, we have, by deducting the
capital that can be loaned, viz:
s24O,7OO,O00, 1897 ,5S6,525, the am
cunt of loans based ON deposits.
This sum, nearly a billion of dol
lars, is more than double the cap
ital of the banks. Lending more
than double their capital of other
peoples money, besides drawing
interest on about S395,G56,5)0 of
United States bonds, or four iifths
of their capital, aud then lending
of their own money S240,700,00O,
or about one more half of their
capital, they have a very profitable
business
"Can You state this last propo-
sition a little more tersely?n
II will put it thus: The actual
use of money by the national
banks is multiplied as compared
with their capital twice in loans on
deposits, eight tenth times in Uni.
ted States bonds and one-half
times in loans of their own money,
increasing their actual working
capital '30-l00 per cent, or three
fold and so per cent. over; and
this, too, independent of their re-
serves, surplus real estate, and
other property
"The lions share of. the profits
comes from deposits, does it not ~
Certainly it does. For six
months of last year the profits OF
the national banks from loans and
exchange were about S20,S16,7S7.
These loans were S2i0,70O,000 OF
thcir own funds and $007, ,5SG,52
of deposits. From this it viii be
seen that over three .fourths of the
profits come from loans Of depos.
its, or Of other peoples money!
"Is there any way OF reaching
the amount Of profits of banks
other than national banksgn
"No; but it is to be presumed
that their profits are about oqua'
to those of the national banks
"Do not the deposits of the na
tional banks very nearly equal The
entire currency of the country2p
"They do. The entire amount
of the currency of the country Is
81 ,4SS, ,S3S,554. The deposits of the
national banks amount to 81, 1874,
100000, lacking only S353,93S,354
of being equal to the whole amount
Of money of the country. The de
posts are about four-ffths of tho
amount.n
"Do you know what the amoun'
of the deposits in banks other than
national is ~
"Yes; s1,71S,700,0O0, and theiI
capital is s23i,9OO,OO0. The depos
its in all banks of all kinds are, il
amount, $3.50, 100000"
"The amount of the deposits
then, is greater than all the none,
in the country9"
"Yes; the amount of deposits Il
S1,361, 100000 greater than th'
amount of currency in the countr,
in other words, the deposits o
the banks of all kinds is very near
| IL double the amount of all tn
money in the country. The ma
tional banks accomplish the re
markable feat of loaning 81 70
about every one they possess
They do this while they have S2i0
O0O,OGO of capital that cannot b
loaned.n
With this favorable showinI
you do not think national bank
ought to be released from taxa
tion?n
II do not. l do not think tn
time has yet come for relieving th
banks of taxation. We have t
raise, for revenue purposes, abou
1890, ,O00,0 ,000-overa a million of do
lars for every working day-and
think the banks are well able t,
bear their portion of this barden
| know of no interest in this coun
try so prosperous. 1t is one 0
the plainest canons of taxation
that taxes should be imposed OIL
those interests best able to pa.