The midland journal. (Rising Sun, Md.) 1885-1947, 1889-01-25
The National Banks.


hibited in the report of the Comptroller
Of the treasury.
In that report the comptroller gives
the number Of national banks reporting
in October to be 3,l40, of which the
capital stock exceeded $685., 900, 900;
the surplus fund s5,OOO,OOO; undi-
vided profits s7O,0OO,OOO; circulation
against bonds si5l,7O2,OOO. The in
dividual deposits amounted to 1885,
900, 900; government deposits $56,OOO-
600. BY comparison Of the above
figures it will be found that the whole
amount of deposits exceeds the sum Of
capital stock. surplus fund, profits, and
outstanding circulation by s407,29S,-
600. When we consider that they pay
little or no interest on their deposits,
but are allowed to loan all but five per
cent of them, we naturally conclude
that they have pretty fat thing of it,
living upon the interest of the peoples
money. Perhaps it would be well for
us to consider for moment how much
the national banks are receiving for the
use of the peoples money, for which
they pay nothing, and give no security
for redemption. Since few Of the
banks in the largest cities are obliged
to retain twelve and one-half per cent
of their deposits for redemption, while
all outside of those cities only five per
cent, we will call the average ten per
cent, which will be more than the
actual reserve. Deductipg ten per
cent of the whole deposits we have
Sl,2l5,0 ,000,O 900 of the peoples money
loaned to the people at, say six per
cent per annum, which amounts to
$72, 100000 annually. Add to this
the interest that they receive upon their
bonds deposited to secure their circula-
tion-the face value of which, accord
ing to the amount reported in circula-
ton, would be $l6s,557,777-at four
per cent, it would be $6,742,311. Then
add the interest upon their circulation
in bank bills-which are nothing more
than promises to pay, and by right
should belong to the people-at, say,
six per cent; but from this must be de-
Quoted one per cent which the govern
ment charges for issuing, which leaves
FIVE per cent on the amount reported,
and equals 81, $3.50 This makes a
total annual income of $87 ,227 All, and
the whole amount of actual capital in
vested is the face of the bonds deposit
ed, or s1es, ,557,777, which shows the
annual profits upon actual investment
to be ffty.two per cent.
Talk about watered stock in railway
companies! 1t is about time we opened
our eyes to the fact that there are other
organizations in this country which are
sapping the life blood from this nation,
and which have the iron heel OF des-
potism more firmly fixed upon the neck
of every wealth producer in this land
than railway companies have. One
would naturally think that ffty'two per
cent profit every year would be sufic-
lent to satisfy the most greedy. But
nothing seems to satisfy the greed Of
this giant monopoly, and just so long
as the people submit they will contin-
ue to increase their profits. for their
avariciousness knows no limits. Let us
look further at the report and we will
learn what their next move will be.
"The recommendation of the comp
troller as to new legislation are, first,
the funding eff outstanding greenbacks
in bonds bearing not over two and one
half per annum interest, available only
as basis for national bank circulation,
and payable only upon failure OF the
bank or upon its dissolution otherwise,
the banks to receive par Of the bondsi in
circulating notes" That means per-
petuity of the national debt, and per-
petuity Of the national banking system.
None but Shylock could conceive oi
legislation SO dsmnable! They seem
not to be satisfied with their pound Of
flesh, but want whole side and the
blood also.
The same report in another place
saws the net decrease in circulation has
been nearly 100000. Fellow citi-
zens, do you know what that meansf 1t