The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1891-09-09
NATIONAL FINANCES.
scHEmING TRICKsTERs FOOL THE PEo-
PIE,
Some Of Their Fraud and Deception
is Uncovered and Laid Bare...Calm
and Dispassionate View Of the


is Uncovered and Laid Bare...Calm
and Dispassionate View of the
Situation.
In this day OF wonderful finances, strange
and absurd Ideas are presented, and urged oy
and self.confidence as ever AleXanderHamil-
ton did bis wonderful system OF finance upon
the first Congresses Of the United States.
the relation OF National banks to the govern.
ment, while others would willfully misrepre-
sent, and mislead their less informed, but
confiding brethren: II Is sad TO think snas tnds
OF men and will cause them TO advocate
measures which they In their hearts, do not
approve. and which they know are not for
The great head centers Of the Alliance.
shrewd, scheming. ambitious, selfish, got
together, and revived the scheme OF the
pie, on land, and farm products, at low rate
Of interest because they know 1t would be
popular with the great mass Of people who
are in debt. They also know, from history,
that substantially the same scheme had been
tried in France, and South America, and
had proved q disastrous failure. They at.
tempt to arouse prejudice by claiming that
the government lends money to the National
Banks, when they know or ought to know
that thaiis deception: I have heard cross
road financiers urge with as much earnest
ness as If they believe 1t, and I think some
lends money TO the National banks at one
per cent; This is misleading and as under
stand 1t Is absurd.
Let US see how National Bank is estab-
lished. Five men or more wishing to start a
bank with capital of 100000 must In the
first place have 800 ,0OO in cash with which TO
buy United States bonds as basis OF credit.
They are required to have that much IN
not buy them, for they are at premium OF
17L per cent. SO they must have In cash
Sl17,50O, to start bank with capital OF SlO0,.
600. Then they are allowed circulation ton o. o.
500, 900. That amount Of bills Is printed by
the government for, and In the name OF the
bank. Whose money is it? Certainly not
ayment Of the oills, II the bank should fail.
This II does without risk, for these bonds,
bought by the bank, are deposited IN the
Treasury United States as security for Its
endorsement, or guarantee Of the bills.
The truth is, the government does not lend
one cent to the banks for 1t has none to lend,
and fortunately IT has not yet gone into the
| brokerage business, as some modern states
bills for the banks, and to meet all expenses,
and for revenue 1t taxes the bank one per
cent. on Its circulation. This is the simple
tives and tramp lecturers persist in saying
that the government lends money to the
banks at one per cent, and ought therefore
to lend II TO farmers at two per cent. That II
quote the language Of the act creating Nat
ional banks as follows:
"The plates, and special dies to be pro.
cured by the comptroller OF the currency, for
the printing Of such circulating notes shall
remain under his control and direction, and
the expenses necessarily incurred In e4ecut.
| ing the laws respecting the procuring OF such
notes, and all other expenses OF the Bureau
Of currency shall be paid out Of the proceeds
| OF the taxes or duties assessed and collected
on the circulate OF National banking asso.
Citations under this title" Section 5173 OF
It was wise precaution on the part Of the
government to keep in its control the
plates and dies for II the banks printed their
own bills, they would likely issue more than
| Ia allowed in the Act.
UP to short time ago nearly all OF the
| National Banks were retiring their circula.
| tion TO such an extent that IL Is thought by
some leading bankers that fully one half hat
been retired.
The banks do not make so much upon tn is
circulation as is thought by people generally
| If that were their only source Of profit they
| would very readily change their investment
They make their money on deposits, ex'
change, discounts, collections &c.
Let us use some figures for our proof o.
this.
TO start bank with 100000 capital will re-
quire In actual cash Sill, 800 which at pei
cent. will Weld S9.4O0.0O.
Now look at the circulation
allOWeQ........... SJO UU
Less per cen nt..................... wv