St. Johnsbury Caledonian. [volume] (St. Johnsbury, Vt.) 1867-1919, 1896-10-16
Total.

~ INlNN NAl llllGulNS VI =, 10
Total, sos
OF the currency notes of 1861 about
$4,000 have never been redeemed.
All these notes are redeemable on
demand. While the government can pay
it's bond obligations as rapidly as they
mature, covering as they do from the
present to 1925, it would be beyond the
power OF this government to pay all
these paper notes on demand with III
past or present resources. So many of
the best hnanciers-men who love the
country as well as does the senator from
| South Carolina, or the senators from
the silver states-assert that the present
money system is wrong in principles and
results in lowering the standard Of our
money below the standard OF our great
commercial rivals-Engand, France and
Germany. This fact is admitted by all
thinking men.
speak lIOW vi luN last hlbb VI ptlBSl
money which we see most frequently in
our deal with our fellows. Take out
your pocket book and you will find a
note called National Bank" note. You
can tell it because the promise to pay is
made by the bank itself. Look and you
will see on each bill, in large plain figures,
a number-the number of the bank that
makes the promise. Please follow me
while | explain what is meant by a
National Bank"
During the war it was seen that pur-
chasers and holders of our bonds were
needed at home. So our 1864 congress
devised scheme-ollowing very closely
in some respects the banking laws OF
New York-by which private banks could
be established, whose bills would be
good everywhere. The first thing re-
CURED was to get rid of the bills or notes
of state banks that will not circulate at
par only a short distance from the place
of issue. Accordingly tax of 10 per
cent was put upon what is called the
circulation, that is the bills. Thus a
bank having in circulation notes to
amount of 100000 will be obliged to
pay $4,000 per year for the privilege.
This absolutely destroyed all state bank
circulation. The state bank circulation
vas backed by mortgage notes, state,
city and town notes, etc.
BY the act of 1864 and amendments,
the government required banks to have
a capital of not less than $4,000 and
as high as it pleased the stockholders.
All circulation was to be based on the
bonds of the United States. The govern
ment became the trustee for the bank
and the holder of its bills. The bank
could obtain its bills only OF the govern
ment. These bills were issued by the
treasury department, by an officer
known as the comptroller of currency
At present that Office is held by James H
Eckels of Illinois, whose management o.
the office has won the praise of all the
solid business men. The stockholders O.
each bank elect the directors who man
age all the affairs of such bank.
These banks are under the control u
the comptroller's office and must make
reports to it whenever required, and are
liable to an examination at any moment
he may direct.
At present there are about $500 O
these banks in active operation. The
first bank was numbered one (1), and
:. each new bank has the next number ano
at this time the highest number reaches
some over 5000. That is the latest
bank organized When bank ceases tc
do business-for any cause.-the number
of it will never be used again. That
number disappears. To illustrate; There
!, used to be bank at Irasburgh, which
e was afterwards moved to Barton. Sub
d stantialy the same stockholders owneo
both banks. But the number OF TIT
o Older bank won't act and new number
: was given to the Barton Nationa
Rank" Should the Barton bank chang'
It's name now new number VIII p'
given it. The government prepares d.
= the plates for national bank bills, ~ KEEL 81
The The Same in its custody and prints all tn
bills. Every bill is numbered and one o. o.
n the same series and number will never D.
}. issued again. The greatest care Is Oh .
served es at Washington in the issuing o
ali paper money, and the oppqrsun'''e
for Cheating are almost impossible.