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

How does a bank get its notes you
ask 1t must first purchase u. 5. bonds
in the market and these must be sent to
the comptroller. A bank purchases and
sends-we will say-$l00, 900 in U. S.
bonds. For these the department will
send 100000 in new blls-lust 90 per
cent OF the face value OF the bonds.
These bills are now some smaller than
So and must be signed by the cashier
and president or vice president and can
then be put into circulation. But these
bills wear out and SO the law requires
each bank to put up 5 per cent OF the
amount Gifts circulation with the treas
urer OF the United States. This fund is
called Redemption Fund. In the case
Of 500 900 circulation the amount thus
put up is 81 500 and for this sum no in.
terest is paid.
The state bank circulation is taxed 10
per cent while the national bank CircuIa-
ton is taxed each year ! per cent. In
the suppose case the tax is $500 per
year.
The bank pays for its freights on its
bills to and from the treasury. 1t must
pay its agent at Washington who sees
that its old bills are properly destroyed
and the annual costs of redemption. AS
the bills OF a national bank become worn
or torn, they are sent to the treasury
and kept until there are several hundred
dollars in value. Then these bills are
counted, the series and numbers taken
and recorded and verified by a represent
tative OF the treasurer, the comptrol or
and the agent of the bank. Then they
are securely tied and scaled and in the
presence of those three representatives
taken to the basement of the treasury
building, put into a retort with only a
single opening and the retort fastened
with 81 three locks, each representative
having a key to one lock. These bills
are steamed till soft and then reduced to
paper. In this manner fraud cannot be
practiced and a national bank bill is
today the best paper money in crcula-
ton in this union. 1t is as good in Paris
or London as in New York Why is this
money so highly esteemed? Because it
is backed by government bonds and the
liability OF all the stockholders, for by
the law each stockholder is liable for 100
per cent of his stock to pay all liabilities
of the bank. This was proved in case Of
the two banks at St. Adams, our own
banks losing some $50, 900, because they
happened to be stockholders in one OF
those banks.
These banks have been and are now
| the objects of the greatest hatred in some
parts of the west and south. In these
states where the most progress is made
| in business and all that ennobles civil
lied lite they are most numerous. The
states of Texas and Massachusetts have
each more than 200 such banks. They
were common tor time in Nebraska and
Kansas etc, but many banks there have
tailed, and some have thrown up their
charters and have formed banks under
the state law.
The people Of the south and west will
soon learn that they have made serious
mistake. In banking the highest type
is the one to adopt. The statement Of
Mahomet is as true today as when he
spoke it: He who would shoot high
must aim at the SUM-"
Today in a certain way the WORLD
measures values by the English pount
rate, handy affair, but it is known
rywhere and taken readily at par
Even the Arabs at Burlington, VT, thu
present season, since the frenzy abou
silver begun, put their hard earning
into English guineas or notes and whel
| asked why they did so, shrugged thei
shoulders and made up horrid face, Blu
said nothing. But in worldly matter
they were wise. Such money was sale
and they, poor creatures, knew it.
But the English money, the note, /
issued by private corporation. Tn
basis of its business is the English consul
or bonds. 1t sends note out into tn
world only when it gets gold, soun'
, money in its place When that note re
turns the bank pays the bearer goo
sound money, and the world will neve
see the same note again.
The same may be said Of the grea
bank of France The government ha
two directors in the board. The nation
deposits, 4O,0OO,000 francs or so, ar
carried in this bank There is no doub
| of the ability of the banks of France o
England to pay all its notes in SCUM
money. All its paper is based on golo
GERMANY SldHuS SluS ny SIM WIN i''A
and England. The United States I
richer and greater than either. But sh
has tor 80 years had currency that ha
made her financially weak and prey t.
panics. Both great parties have toun
platforms to catch the votes OF certai
, sections, both have wed in passing cul
, rencv laws that the fnanciers kneN
/ would lead to financial distress ii nc
ruin. Our currency today is dlsgrae
to the nation. In this | do not includ
: the national bank notes. Men Ink
Judge Poland saw this and tried t
remedy it. But there has been no tim
when such matters were seriously col
sidered. Members were securing I'll
passage of some river and harbor bill c
e an increase in salaries, Now we al
:, brought face to face with the reallt.
We are feaping the whirlwind. III
. sound money men and women mu:
p. stand together and fight shoulder t
( shoulder till we win this great battle t6
a honest money.
i oxu Datec IN ROStOu