The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1890-12-09
NATIONAL BANKS.

100000 ~ @%$~ S@~ &o4&~O AN WIZ
into it voluntarily. And yet our patriot,
the said Mr.. Griffith, filings his arms in
mid-air AID pufs like . pair Ct SEQ Oh
bag pipes and prays that his popularO
system may OF be abo ished, and "that
it woulh be a public calamit to destroy
or impair the system" If the people OF
Kansas fail to recognize in Mr.. Griffith a
patriot, they must be blind indeed. He
may be, and I am willing to concede that
he is a 10 per cent patriot.
He then asks the question, "Why do
you organize a National bank instead of a
State corporation If the law imposes bur
lens that are unprof4ab p Hear the
answer of the great patriot, G. w. E G.:
1t IS on account of the popularity of the
National banks" The people patronize
them better-"in preference, and a banker
must be governed by the demands Ct The
people IT he meets with success. They
must have the full confidence of the peo-
pie. National banks have this confidence
to a remarkable degree" Whew! The
truth is, people that are compelled to use
the kline Offices of the banks have little
or no choice in the natter. There are
many that have had confidence in a re
M 4rkable degree in National banks that
have lost it-e. g., the wrecked banks of
New York City. There is no protection
afforded depositors 10 National banks be-
cause bonds are deposited.
SEC. 5167. The bonds deposited by any as ocia-
ton for the sedurity Of its circulating notes shall
be held erduSiOeLyt0r that purpose.
The first is a general denial Of the allie
cation that banks under the National
bank act are favored. Is his statement
true, or is it false2 There is an old maxim
that teaches, false in one, false in all
Sc, 3412-3413. Every NationaI banking associa-
ton shall pay a tax CT ten per centUn9 on the
amount of notec of any person or Of any State bank
and paid out By them. Every National banking
association, Safe bank or banker or association.
shall pay a tx O. ten p centunD on the amount of
notes of IN! town, city Or municipal corporation
paid out by them.
SEC. 3417 The provi, ions of this CHI uter relating
to the tao on Sanks, circulation, etc, as related to
the tax Of 10 per centuB on certain n ties, shall not
GDp'y to associations which are taxed under and by
virtue OF title, NATIONAL BANKS.
Mr.. Griffith, shall / take your W I'd, or
shall | take the law? The law says if
your association is no. under The National
Bank Act you must pay 10 ger cent. on
your circulation. You say you only paid
l per cent That is, you paid 1925 tax
for your privilege, but had you issued
your W currency you would have had
to pay $225O. Now are you favored, or
are you not? The truth is, the great
patriot Griffith to the contrary, that the
system favors those that come under its
provisions and discriminates at the rae Of
8 per e against those that do not come
under the system.
Y u say that n 1873 the actual ~circula-
ton OF the National banks was $342, 800
900, and that in December, 1889, the cir
c~ulation was only $126, O4O 900 showing
a decrease Of $2l6,31O 900 in the ~circulat-
ing medium. TINS fact, which you admit,
is of the greatest curses that our peo-
pie nave to endure. Just in proportion
as you contract the curren y Of a country.
yust in that proportion do you make the
people suffer. To illustrate: Suppose
there was to be sold this day in your
beautiful city of Lawrence, 1000 houses
and lots, and they were to be sold for cash
and there was only 81, 900 in cash in Law
renee, or could be gotten there, the houses
could only sell for 81 apiece on the aver
age, and they might sell for less. If the
supply of cash in your town was abund-
ant, they would sell for their real value.
This illustration will serve TO show the
people of Karsas why their products fall
in price just in proportion as your beauti-
full system lessons the amount of currency.
Mr.. Griffii h says a bank may issue
500, 900 if it has a capital of 800 600, but
it may issue only $22, 500. The act of
July 18th, 1882. Sec. s, says: "Banks
now organized, or hereafter organized,
having a capital of $3.50, 900 or Il IS, shall
not be required to keep on deposit, etc
bonds in excess of One,foWrh Of their cop-
ital stock as security for their circulating
n )tes, etc." Now when the much named
Griffith gets down to the seat of his
troubles he says: "Let US see what the
burdens are that make it Improbable a.;
every bank is required to purchase and de-
post with the Comptroller of Ccurrency
800 in United States bonds as security
for every $50 in currency. Now if Mr..
Griffith does not like j., or if the banking
fraternity does not like it, the farmers
will step in and deposit 81 90 worth of
corn and take 80 tents in currency. AID
will be very glad to do so. We do not
ses anything wrong in this.
But his crowning argument is the figures
he presents. He clai MS to give a fair
statement of his bank. / cha ge, and
shall prove that when he made that state
ment he did it knowing it was false, or
if he did not know it was false he has not
brains sufficient to be president of a bank.
His statement is as folio VS.:
$4,000 U. S. bonds cost. ........... -. S31, $4,000
PEI cent. interest amounts to. .......... 81, 10000
Examinations -. so 90
Publishing reports. $500
Taxes on $22,5 500 CurreLC y. 1880
Redeeming and destroying currency. $500
bonds 80. 10000
EC,11O.UO
q make it So, 125 O0)
RECEIVED AS FOLLOWS
On currency issued, S2l 1875, at per cent. 81, 1000
Interest on $25 600 4 per cent. bonds 80. 100000
Total; :n;;...... :.:.::.-...... $2,nOO %
Thus 1t will be seen that this shows an actual
loss of $500 a year to the bank, which ia a fair and
CORE ct statement
Thus endeth his chapter. Now I say
that it does not show S4OO loss. That