Omaha daily bee., 1892-08-07
SOUTH AMERICAS PATRONAGE
United States Merchants Losing Business
in That Direction.
TESTIMONY Of A NEBRASKA CITIZEN
Consul Love Gives HIS Experience in San
Salvador - why the Natives Prefer
Goods Manufactured IN This Coun-
try-washington News Notes,
WASHINGTON BUREAU OF THE Bee,
5l3 FOURTEENTH STREET,

j. w. Love, consul at San Salvador, is
| here on furlough and will go to his home
In Fremont, Neb., in a few days. Mr.. Love
| says: THE American merchants are losing
a magnificent trade in the South American
countries solely because they do not seek to
keepit. We rank third among the people
where l am located when we ought to stand
first. The people of South America know
| what the goods of the United States are and
want them and would buy them II per-
mitted to. Means OF transportation to the
inland cities is primitive and goods are car
ried on mules or In two wheeled cart SO
that 1t is impossible for them to handle
| freight that weighs over 150 pounds. The
| English, Germans and French recognize this
and pack their freight accordingly. They
| also protect it from the weather and do q
| dozen little things that please the natives,
| while the American ships his goods just as
| he would from one store to another.
| Counterfeit American Goods.
1--WE ought to sell all the military supplies,
all the cutlery and hardware and ali the
| fabrics that go to these countries, and would
| IL agents were sent there. The foreigners
| have solicitc rs for trade among them all the
| time. Knowing the favor in which American
| goods are held the foreigners have taken ad-
| vantage of 1t. 1 have seen revolvers with
| with the name of Smith g. Wesson, but made
| in England, sold in San Salvador. and of the
common fabrics made in New England, the
Indian head brand Is counterfeited in Eng
| land and sent there. Enormous quantities of
| this are SOLD, for it is a hot climate and cot
ton makes up the entire apparel. The natives
| prefer even American beer, ana even
| this is initiated l have seen beer made
abroad with the name of Anheuser
| turned in the cork and sold for
| the genuine st. Louis article. Enormous
| profits could be made by our merchants if
| they would grasp the opportunity. These
l nf M Hnl
| that offers better advantages. The trade
belongs to us by right ana we should have
| it."
Grant County Resurveys.
Senator Paddock said tonight: "There
seems to be misapprehension about these
Is not absolutely blameless in the
matter but has used every effort to
secure the resurvers asked. l brought the
subject before Judge Grcff nearly two years
ago and he tried his best, under the law, to
have the resurveys made. This was not
done aud could not be done because the writ
ten consent of all the parties iu interest was
not obtained. The law requires that all par
ties whose land might be affected by the
changes of boundary must sign consent in
writing to the changes which may be
made This petition acts as waiver of
damages against the government. No resur-
vey can be had without 1t. Judge Croft
used every effort to get the matter in such
shape that the government could act, but
failed through no fault of his own or the
government / had considerable cores
pondence myself on the su bject with friends
in Grant CO -nty who understand the matter
thoroughly. | know of no reason now why.
IL the necessary consents are secured, the
resurveys cannot be made. Congress every
year approp-iates money in bulk for resur-
veys which are apportioned Dy the commits
sioner of the general land office according to
demands. The talk OF any money specif-
caily appropriated for Nebraska having been
diverted to Idaho or elsewhere is nonsense"
National Banks Heavily Taxed.
The profit on national bank issues. owing
to the misrepres entatlons of the democrats
and members of the third party, is supposed
to be- or to have been enormous; but this Is
an erroneous belief, q mere assumption. For
instance, in 1879 there was on deposit with
the treasury as security for national bank
worth in currency much more because Of the
premium. say 1926. 500, 900. On this, the
banks, however, could only have, say $685.
$780, 900 of circulation, because from the sec
ond item, or value in currency, we subtract
premium on bonds, s6i, 900, also 10 per
cent margin on which no circulation issued,
s36, 10000; total, Sl00, 900; leaving the
1875, 10000. Currency value of interest on
bonds was S22, l64, 900. Deduct | per cent
tax on circulation, 1928, ,OO0 balance inter-
est Sl9,0ll 900. Deduct from circulation 5
per cent (act June, 1870, required to
be deposited for redemption purposes,
sa pa "a 200 90 SoIHIe aysitSbe for eaVng only hy
the banks. THIS, loaned at per cent,
would give as interest S24. 1869. Add to
this interest received on bonds, Sl9, 9,0ll 900,
and We nave a total profit of S43, 734, $50. The
interest at per cent on the $425, 500, 900 re-
qnlred TO purchase the bonds would be S34.-
O64, coo, a difference in favor of the national
bank system Of only about S9,67O,560, or say
215 per cent, over the amount that would
be received by an individual on ordinary
loan.
No account has been taken of loss on ac-
count of premium paid on bonds, nor of loss
occasioned by refunding our bonds at lower
rate of interest, nor of the severe taxation
that has been imposed on national banks.
The truthfuiness Of these general statements
made from the records Of the Treasury de-
partment is borne out fully by practice, as
the reports OF the coinptroll ,r OF the currency
for the last two or three years will show.
Nearly all Of the national banks have for
some years taken out the minimum of crcu-
lation required by law, and hundreds and
hundreds OF them have reduced them to the
lowest ebb, as they found the high and fuc-
tuating markets have made their losses upon
bonds exceed the profits by way of interest
coupons. The ''proit aud loss" ledgers of
all national banks show frequent losses on
account OF reductions In premiums upon
bonds, they having gone down something
like 10 per cent within the last year or two
More Money IN State Banks.
Dividends have not been as large with
national banks as they were with state
banks. The average in the whole country
has been per cent by national banks on cap
ital from 1869 to 1875, and only per cent on
capital and surplus.
The national bauks have been subject to C
heavy tax. The states have insisted upon
taxing the shares as personal property,
while the government has imposed n tax of
one-half OF ! per cent semi-annually upon
circulation, one-half of per cent ON de-
posits. and one-nalf OF / per cent on capital
not invested in United States bonds. 1t
would apnear that our national banks from
1864 to 1886 paid IN taxes TO the government
$3.50, ,000, 900. the total tax paid by national
banks to states und the government during
tnat time having been probably
double that amount, or S26Q000, 900.
And they have paid to the government in
taxes down to the present time over Sl40.-
100000. the tax on deposits ana tho taxes
imposed on capital not invested In United
States bonds were repealed in 1888, for II
such had not been the case the profits entire
would have been wiped out The comp
troller Of the currency In his report of 1891,
shows that the national banks paid the gov
ernment IN taxes In 1891 over 81, ,2l6, ,0J0, and
q total for taxes, cost OF redemption of notes.
bank examiners fees. cost OF plates, etc,
over 81, 10000. With United States bonds,
419s and As, at from par TO sll7, the investor
or banks only realized from 7-l0 to per
cent profit.