New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1892-10-05

panies during that period who could compute the
losses TO depositors aud other creditors as well as 70
note holders! ,,
Again since the establishment OF the National
banking system not single note issued by Nalionai
hank has been at Il discount in any part OF The
Tinted states. A note issued by bank IN hfiho""
or New-MexIco is as good In Massachusetts, or new
yo, nc note issued by the strongest bank In either
ono NJ those States. What would such a note Do
worth IL the old system were In vogue? Under that
system the average discount on the ho'e' even Vi
solvent State banks alone, was about per cent
This was n fax on the nOteholders, to whch the
holders OF National bank notes have never oeeh SUI
iected and BY the larger proportion OF IL ieh up
the farmers and wage-earners Of the country IL
the old system had stood this tnx-assnmlng that 'he
total average amount OF notes an crcuhuoh "a
oro, IN the total average during the twenty eignt
years under the National system-it "ouu 'h'e
amounted to Ell $50, 744 year, at per cent anu
tho aggregate for the twentyeght years would nave
coached the handsome figure OF 1923 $50. Inc
Democratic party has declared in favor OF the
ton Of this tax.
no MORE HIGH EXCHANGE PREMIUMS
Another heavy tax imposed by the ola system ""'
in the form OF high premiums on exchanges Az
cordng to Secretary Foster who was merchant III
,hoso davs the rates on the very best Ohio oahH
notes was 2 per cent Chicago merchants were COM
nel,ed TO 1aS 8 TO 10 per cent premium IN Iooi'
when they bought New-York exchange With ILLINOIS
hank notes OF course their customers paio '"'S III
rho form OF higher prices for the goods tey Dous"'
They are compelled TO submit to no sneh eSac"oh'
under the present banking sys'rm'
Now, as TO counterfeit bank notes. In 1893 &C
,, ~ ono Of the best authorities OF that time, there
ro M loss than 1000 different varieties VI counter
,t and altered state bank notes In circulation ana mo
counterfeiter was In his glory. seldom was ne ue
tected and still more rarely was ne cohVc'eu al"
nunshed Under the vigorous ana enectlv' auhIhiH"a
tIon and enforcement OF the rigorous laws 81 the Chtd
States the occupation OF the couhtere'er mas oe'o"o
a most risky and hazardous OF all the differ
ont issuos Of notes by 484S National banks since 1863
probably nearly 90 900 in number-ony los have been
cnunterteited and so vigorous and stccesslui hh'c
heen the pursuit and prosecution OF the couitere''e
that most a the spurious plates have been capture"
and the criminals landed In the penitehuhry' Co'
nro,Iyolv few counterfeit National bank notes nave
found their way into circulation owing 10 tne visi
a, tho officers 81 the Government the ease with winch
most OF the counterfeit notes could be detected ana 'e
foct that all National bank note plates have Deeh eh
oyod and remained In the custody Of the Treasury
Donortmcnt Probably the total losses TO holders
NJ National bank notes during the Inst years
~, account Of counterfeit and altered notes nave ho.
eoracd the losses Of single year TO the hoiues vi
State bank notes under the Old system
The Democratic party now demands thot the S"'e
AGAINST
has thrown around the paper money OF the country
shall be removed, and the old system. which ohered
nremlum 10 the counterfeer and his pals shall De
restored Under that system with less than half as
MANY banks issuing circulation as ut present. he"
colInerfcits appeared at the rate N more IMAM TWO
day: under the National system less than one ne"
counterfeit has appeared in three months, ana 'he
counerteitIng industry, which throve under the ou
system has not only been paralyzed, but virtually
destroyed.
THE TAX on NATIONAL BANKS.
As has already been said the Democratic party docs
not propose 10 repeal the National bank crcua
ton It's whole soictude IS expended on the S'a'e
banks In this relation II Is therefore, pertinent 10
call attention the fact that from July l, 1874 10
Juy 81 1901 the National banks paid into the Treas
ury o, the United states account Of taxes on their
circulating note, the large sum Of al ,339l2o mat
was not ALL During the same period the Na'ohal
hanks u<d into the United states Treasury on account
OF tax on capital a. 55j,SS7, and on deposits s'o
oio.O67 The direct contribution OF the National
banks townrd the support OF the Government In the
form OF taxes In twenty eight years, therefore,
amounted H. the enormous sum Of S14ol3oo'O' or mt
the rate Of more than $1,000 900 year.
1t Is proper a. call attention 20 another matter ~
Is well known that good deal OF the paper money
ssucd whether by banks or by the Government Is lost
or destroyed and presented for redemption. III
conversation with Tribune correspondent to-day Sec
rotary Foster said Experience has shown that OF
500 900 In circulation notes issued TO National bank
nj It's organization, under charter running twenty
years only $4,000 will be presented for redemption
Under the National banking system the Government
receives the benefit o, the difference because the banks
are required % deposit lawful money 10 redeem the
whole OF their circulation, irrespective N losses by
wear and toar IRE. winter and ether casunlties'
Under the old system the banks. OF course, re-
ceived and enjoyed the benefit derived from the o's
and destruction Of their notcs. and It source Of
considerable profit. In advocating return to the old
system the Democratic party declares that this CASUAL
accidental and yet constant profit on circulating notes
shall he enjoyed by few hundred bankers and bank
shareholders rather than by all the people Of the
United states.