The Breckenridge news. (Cloverport, Ky.) 1876-1955, 1895-04-10

what is the result2 II the capital you
speak Of were put" at 80 per cent pei
annum'aud compounded only every two
years, 1t seems to me you have made a
slight mistake in your figures. For, il
such sum were put" at 80 per cent
per annum, it would, compounded BIZ
ennially, double itself at the end OF the
second, fourth, sixth, eighth and tenth
years. This gives us 500, 900, OOOx2x2x2
x2x2=$22, 400, 900 900 instead of $4,000,
900, 900 as you gave it, You only missed
the truth S1S,2OO,O 100000, and that is
getting pretty close to it for an advocate
OF the national banking monopoly and
the gold basis swindle. Your last article
shows immense improvement over your
former one and l am glad to observe
this fact. 1t shows that you are an apt
scholar.
You represent me as saying, THAT a
company wishing to engage in national
banking will first purchase per cent
100000 bond paying for it $4,000, de-
posting it with the controller OF the
currency receiving in exchange 10000
in bank notes." l won't say this is lie,
because that would be supplementary.
II you will go back to my article you will
find what did say was this: "Those
foolish fellows pay $4,000 for 100000
worth of government per cent bonds,
interest payable quarterly. Those fool
ish fellows are all bankers. They deposit
their bonds with the Secretary OF the
Treasury and get from the Comptroller
of the currency $4,000 worth of national
bank currency to loan out at usury."
Anything said here about establishing a
national bank? This is very different
from what you represent me as saying.
1t is not necessary that "a company
should buy per cent bonds, as a basis
for circulation; any denomination OF
bonds will suffice.
You say "He knows that the govern
ment assesses and collects semi-annually
a duty OF .43 per cent on the circulation,
the deposits and capital, stock OF all
national banks" No, l don't know it;
neither do you. If you think you know
hat, just point out the United States
statute taxing the notes, deposits and
capital stock of national banks and will
give you years subscription to some
good Peoples party paper. We have
about 2500 papers preaching the gospel
of higher and better civilization, any
one Of which would give you much val
liable information on many Of the
economic problems of to-day.
You ask, "Does he not know that all
national banks have to deposit with the
Comptroller of the Currency sufficient
amount of lawful money for the retire
ment OF their circulating notes"
Yes, l know they must do this when
they want to retire their circulation.
But they can redeposit their bonds six
months later and take out new circua-
ting notes, il they so desire
Again you ask: "Does he not know
that the $4,000 capital stock upon which
the bank was organized is merely loan
for which the bank must give the best
security ?" Yes, know that the 800, 900
of bank notes furnished to the bank by
the government is loan; and, for this
loan, the bank pays only per cent per
annum, J per cent payable every six
months. Isn't this special privilege?
Why should the national banker receive
currency from the government at per
cent to do business with, when other
people cannot get it at all
But your question assumes that the
500, 900 loaned the bank by the govern
ment is the banks capital stock upon
which the bank is organized. This is
not the fact, and you ought TO know bet
ter than to say such things. Populists
may exaggerate sometimes, but none Of
them are 80 densely ignorant as to assert
that the governments loan to the bank
is the banks capital stock.
With the exceptions l have pointed
out your last article is an able one and
possesses much "intrinsic" merit Gov
eminent bonds, bank notes are not tax
able, and the national banks don't pay
taxes on their deposits.
Now, S. P j. il you want to defend
the national banks, the single gold stand
ard, and the money monopoly in gener-
al, Just come on.
You close with this beautiful perora-
ton, "Great Scott, man, do you take the
readers OF the News for a set of numb
skulls, incapable of making deduction
for themselves or knowing beans when
the bag is open2 You certainly do"
/ certainly don't. / don't even take
you for one. But like the gallant
Dan Quixote astride the patient Rosin-
ant, unasked, unsolicited, you rssh to
the defense of the readers OF the News,
whose intelligence you think has been
suspected. When the readers of the
News want you to vindicate their intel
ligence, they will call upon you.
Sincerely yours,
J.H.A.