The midland journal. (Rising Sun, Md.) 1885-1947, 1891-05-08

order 10 Qec.de what we should do, to
know what We are doing. The act Of
Congress Incorporating the national
banking system became law March
25, 1868. By referring to Flaws re-
lating to loans and currency" we find
all acts governing national banks be-
tween pages 1853 and 2l8. l will give
afew extracts as | 90 along. Page PIP.
Sec 3; That section 5l27 Of the Revised
Statutes, limiting the aggregate amount
Of circulating notes os national banking
associations be, and is hereby repealed,
and each existing banking association
may increase its circulating notes in
accordance with existing law without
respect to such aggregate limit. APP
proved Jan. Il, 1875. Section $3.50:
Every association : before it
shall be authorized to commence bank
ing n 4 shall deliver to the
Treasurer Of the United States any
United States registered bonds, bearing
interest to an amount not less than
$50, 900 and not less than one.third the
capital stock paid in. Section s.:
< X The Comptroller Of the
Currency shall give to any such asso-
citation powers of attorney to receive
and appropriate to its own use the
interest on the bonds which it has so
transferred ty tho treasury. Section
5l7l: Upon deposit Of bond, 3 Z
the association making the same shall
be entitled to receive from the Comp
troller Of tho Currency circulating notes
= < equal in amount to 80 per
cent Of the amount Of bonds, etc.
That the Secretary Of tie Treasury
be authorized to anticipate the payment
of interest on the public.debt bonds, by
a period not exceeding one year, etc.
Section 2. All stocks, bonds and
other securities OF the United States
y = shall be exempt from
taxation.
Now, let US slit the above laws.
Under section 8 we find they are given
power to expand or contract the amount
Of money in circulation at their pleas
ure. A privilege that places.the pro-
duce and property Of the whole people
at their mercy.
Under section $3.50 VIC learn that
government bonds are the only security
required or accepted. Again they re-
ceive interest of the bonds, which
interest may be paid twelve months
before it is due. We had striking
illustration Of this game Of robbery last
August. They are by section Sill
giving 90 per cent of the value of the
bonds in circulating notes. which
they loan to the people at from 6 to 25
per cent (section 2
Five men agree to start national
bank They buy $50 900 worth Of
United States bonds and deposit them
With the Treasurer of the United States.
The Comptroller Of the Currency issues
to them SIS 900 in bank noles. And
they open shop. They receive on their
$50, 900 worth of bonds per cent
interest, which may be paid them a
year in advance, and they loan the
$4,000 to the people at from to %
per cent and have no taxes to pay, ION
the bonds.) Worse still; by concert Of
action with the other national banks,
they can contract the currency and
reduce the price of everything, buy up
what they want at the low price. then
expand the currency, raise thereby the
prices and sell at high price.
Do they do such things, and make
such heavy profits? Let us see. Wm
II. English, late Democratic nominee
for Vice. President Con the Hancock
and English ticker as president of a
national bank in Indianapolis, made
the following report TO the stockholders
81 congratulate the stockholders OF
our enterprise. The bank has been in
operation fourteen years, under my
control, with capital stock of $500,
900. In the meantime It has volun
tarily returned $4,000 of capital stock
back to the stockholders, besides paying
them in dividend 81 ,496 1873, part OF
which was gold. and | now turn it over
to you with capital unimpaired and
1927 900 of the undivided earnings on
hand. To this might be added the
premium of United States bonds. at
present prices amounting to $4,000.
besides quite large amount for lost or
destroyed bills.''
These fellows put 100000 into the
enterprise. and in fourteen years drew
out S2.359,250, 1.-TWO million three