The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1891-10-05
NATIONAL BANKS.
Hedged About with Laws That Make Them
Safe Depo.itories for the People.

Hedged About with Laws That Make Them
Safe Depo.itories for the People.
Special To the Indianapolis Journal
WASHINGTON. Oct. 4.-"You may safely
anticipate that the severest assaults OF tho
Democratic party upon our national bank
ing system viii have no effect. SO far as
abolishing the system is concerned, al
though they will for the time being cripple
il and prevent an enlargement of the
system.n This was what ex-Congressman
Henry Clay Evans, of Chattanooga, said
to your correspondent the other day. Mr..
Evans Is a very successful business man,
and has mado banking q study for many
years.
"One of the most effective arguments
made against the national banking sys-
tem," continued Mr.. Evans. was that IL
gave the bankers an undue advantage over
the people: that il gave them q profit on
their circulating notes. and also made Ii sn
advantage because they could sue in the
United states courts and take their debtors
to the place of holding federal courts every
time note was sued upon. This Is only
partially true now. The circulation OF
national banks is now a source of no profit,
and since the United States courts are SO far
behind in their business it rs u adIsadvantage
TO have 10 bring suit before them. Do you
know why national banks are organized
and maintained instead OF private banksf
Ii is simply because they are considered the
safest. The people regard deposits IN q ma
tiOnal bank safer than in private bank.
on account of the rigid examinations of the
federal governments agents. It 10 not be-
cause there is more money in q national
bank, for the contrary is true. Private
banks are the moro profitable. The laws
regulating discounts and fixing the loans
make the most money. On the contrary.
they make the leaet money. They way ma
tlonal banks must be run now. and in con-
sideration of the premium on bonds " hich
must be deposited 10 secure circulation.
there is but one real advantage in making
bank national Instead OF private. and
that is the security guaranteed depositors.
And what makes that securityf The very
laws which form the system.
The national baDkin sy stem 10 n source
of great profit 10 the government. and thus
the people. for the government - owned
and controlled by the people. i have re-
Gently had some statistics formulated IN
the office of the Controller of the Currency.
j lind that the government has received
from national banks about sa0,Ooo.O00 in
the form of taxes. etc., while it has paid
ont only S4.OOO.OOO m expenses. making q
clean profit of over s26.00.0UO from she sys-
TEN. The Democratic croakers have been
trying by misrepresentation TO make igno-
rant persons believe that the national
banking system was maintained at n heavy
loss To the people for the benefit of the
bankers. IL Is false. Yon know the banks
themselves pay for the examinations made
by the governments examiners. and
pay. also. for the plates upon
which their notes are printed. The
one-baif OF ! per cent tax they pay
makes good reserve and profit for the
government. Then the banks must carry
so mnch TO the reserve every year and do
lots Of things which reduces their profits.