The midland journal. (Rising Sun, Md.) 1885-1947, 1891-11-06
a Profitable Business.

amount to $437 100, NOT one-half the
amount Of the loans and discounts. Their
aggregate redemption fund with the U. 8.
Treasurer of per ceat of circulation foots
up $3.OS2.50, which shows their authorized
circulation 10 amount 10 $61 ,65O-that is,
they have ordered reduction 10 their cir
culation which will reduce ii to this amount.
as soon as ii can be picked up, as il passes
through the Treasurers hands, and de-
stroyed. The amount outstanding at the
date Of the above statement shows about
$50, 800 more, which is steadily going in
and being destroyed. Our four banks BEN
eft the business of the county for the special
privileges they enjoy by adding to the cir
culatiDg medium Of the country, $61 $50,
while they hold notes-interest drawing
obligations-amounting to $l,1S6,000 in
round numbers.
The amount Of the deposits placed in the
custody Of the banks by the citizens Of the
county foots up $l37 100, of which they are
allowed to loan out for their own benefit all
but Is per cent, and the law granting them
this privilege they certainly make use Of.
From the above figures we can pretty close
ly estimate the amount of money circulat-
ing in the county. The total amount it
would appear is $76 900. This amount does
not include the boarded money, that which
is in peoples pockets and not a part of the
circulation.
As cramped as business is for the want of
money in general circulation, we find by the
above loans and discounts that 81 1855 900
is absolutely necessary to get along with
the business of the county, and that is made
up, over the Sc, 1000, of phantom or credit
money, loaned by the banks. Of the above
amount of loans and discounts the banks
owned $94, 800 outstanding on the 25th Of
September, and they have given notice TO
the U. s. Treasurer Of their intention to
draw in $50, 800 of this amount, thus reduc-
ing the general circulation to that extent.
This reduction of circulation is going on
steadily among all the national banks Of
the country, which were established for the
purpose, it is alleged. to supply sufficient
circulating medium for the use Of the pso-
pie. In place of furnishing the much need
ed supply for the great privilege they enjoy,
they are depending on loaning the money
of their depositors, in preference TO paying
the Treasurer one per cent, for the use Of
bank notes the deficiency they are making
up of phantom or credit money, an invisible
kind ofmoney, every imaginary dollar Of
which draws from the products of industry
from six all the way up to fifty per cent,
interest. 1t is estimated that 95 per cent of
the money doing the business ofthis country
is composed of this phantom or credit
money, by which ingenious device the
national banks haye in the last 20 years
been enabled to copjure four thousand mil
lions out of the pockets of the wealth pro-
ducers Of The country into their own vaults.
But let Us see how much this subtle alchy-
my conjures out the pockets of Cecil
countians. The bank statements show the
total deposits to be $437 100. all of which
they may loan except Is per cent which
must be kept on hand to meet their custom
ers' checks. By this estimate we learn that
the amount of actual money doing business
in Cecil county il about SIC, 900. By a
skillful use of this small sum of money
added to the capital paid in, their undivided
profits and circulation, they draw an annual
interest authorised by law of ST. 900 which
may be safely raised to 100000 if the adj
vance go days interest, the perquisites on
renewals and the so cent charges on notes
less than $50 be taken into our estimate.
Let farmers compare these princely gains
with their humble pittance, and say if they
don't think it is time to make change.
But let us examine these statements fur
Their, which are made under oath for the
information of the public. We find an item
of $ Undivided Profits" in every bank state
ment. In our four county banks this UNI
divided profit aggregates $73,171,04. This
might be called q surplus profit and repre-
sents the earnings over the semi. annual
dividend declared TO stockholders. 1t is
nice business that can show snch hand
some surplus over their annual dividend,
never less than six per cent.
This much appears In the public state
meuts of this princely business, our modern
banking system of the United States, copied
from the English system, or Bank of Eng
land. and controlled by the gold ring ofthat
country.
The question arises, is this system of
banking worth to the people in transacting
their business its immense cost? Could not
all its benefits to business be secured at one
tenth the cost? In short would not real
money costing no interest be vastly more
profitable TO the people than this expensive
phantom bank money? 1t may seem para
doxical TO many of our readers that loans
amounting to 81, 1S6.465 could be- made
from volume of money accessible to the
banks to make loans from and keep those
loans outstanding of only 5000, for their
circulation furnished by the government,
capital stock paid in and not represented by
their q. =. Bonds, and the undivided profits,
do not constitute any part of the circulation
that is employed as business money in the
county and represented by individual de-
posits. Those sums represented in the gem