The Camden chronicle. (Camden, Tenn.) 1890-current, 1892-05-06
THE NATIONAL BANK SYSTEM.
HOW 1T HAS BEEN misunderstood.
An Extract From a Speech by Hon. j. A,
Cunningham at Bon Aqua Springs.

fully misunderstood, indeed it will
never be understoodby our Alliance
friends if they continue to trust to
the public speakers and such papers
as the National Economist and the
Toiler for the facts, because if their
speakers and these papers know the
facts they fail and refuse to give
them to the public. One of the
best ways l know to present this
question SO as to simplify it and
make it so plain that a school boy
can understand it, is to give the
history of the organization of a ma
tional bank, and when we get the
history Of the organization of-one,
you have the history Of all, differ
ing only as to amount Of capital,
stockholders and location.
John T. Walker, of Centerville,
some six or eight years ago organ
lied national bank with a CAPT
tai stock of $4,000, the history of
which is as follows: Mr.. Walker
first made up the stock for the bank
by procuring subscription to the
capital stock. Hethen went to New
York and bought from a New York
bondholder United States bonds
amounting to $4,000 one-fourth
of the amount Of capital These
bonds were deposited with the Sec
rotary of the Treasury, and char
ter for the First National Bank of
fCenterville granted. Mr.. Walker
was then furnished paper printed
by the Government at the banks
expense, which he as cashier and
H. Clagett, as president, signed,
amounting to $11,250. This paper
whenproperly signed by these bank
officers, became money, and was u.s.
ed as such, just like the gold, silver
and greenback owned by the bank
This completes its organization
Now, how 7e the people and the
Governmel. affected by the organ.
ization of this national bank; and
what is the difference before and
after it's organization? Has it cost
the government? Not one cent
Every dollar of the expenses is pait
by the bank. Has it increased the
, interest on the bonds of the Gov
eminent? Not one cent. On the
: contrary it has the effect of reduc
t ing the interest on the bonds to thu
, amount Of the banks issue, S11,
: $50, at the rate Of ] per cent, pc
t annum, because the bank pays thi
| amount for the privilege Of bank
1 ing. Is the money thus issued b,
: the bank good? Perfectly. TIL
} bank, in the first place is bounc
1 for It's redemption, and in case
Y breaks, the Government redeems il
: The Government can lose nothinj
] even if it has TO redeem this money
2 because it has it's own bonds as Sc
S curity to indemnify it against los;
and in case it has to redeem thi
i National banks money, it works a
a payment of the bonds Of the Gov
f eminent, thereby liquidating on
). of its own debts and stopping inter
y est on bond that was payable i
: gold and run until 1907. Nov
e while there is no difference in tn
n amount Of interest paid ON the So
d 900 bonds by the Government be
fore and after the organization c
: the bank there is difference as
X whom the interest is paid. Befor
/, its organization it went to Ne,
+ York bondholder, since its organ
IS zation it comes to the stakeholder
IS of the bank, twenty-six in humble
d thirteen of whom are Hickma
e County farmers. Task who object
d to this change? What else hs
n the organization of this bank done
e 1t has decreased the circulatio
d system the amount of money in eli