The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1896-09-11
MORE OF BRYAN's IGNORANCE.
In that portion of his letter of acceptance
which is devoted to an attack on the ma
tional banks Mr.. Bryan says:

IN LHdL portion OIL MS letter OIL acceptance
which is devoted to attack on the ma
tional banks Mr.. Bryan says:
The present attempt of the national banks
secure a basis for larger issue
ger which arises from permitting them
70 Issue their paper as circulating Iidn
banks to issue circulating notes is to grant
a valuable privilege to a favored class, sur
render. to private corporations the control
over the volume Of paper money, and
build up a class which will claim a vested
interest in the Nations financial policy
1t was hardly to be expected that a man
who has shown his dense ignorance on al
most every phase of the monetary ques
ton should know anything about national
bank circulation. The statement quoted
shows that Mr.. Bryan considers the privi
lege of issuing notes a very valuable one
to the banks. In fact he calls it "a valu-
able privilege to favored class (stiL harp
ing on classes). and says the banks are try
ing to force the retirement of greenbacks
''in order to secure a basis for larger is
sue of their own notes.
First, as to the profit on national bank
circulation. The last report Of the Con-
troller of the Currency, that for 1895, con-
tains table showing the profit on circula-
ton, based on deposit of 100000 of bonds,
during the years 1854 and 1855. Each bank
is entitled to circulation to the amount of
80 per cent. of bonds deposited to secure
it, The statement of the Controller shows
that during the year 1894 the net profit on
circulation for each $780, 900 worth of bonds
was on per cent bonds. 500 thousandths
of / per cent. on per cent. bonds, 719
thousandths of l. per cent; on per cent.
bonds $50 thousandths of l per cent, and
on 6 per cent. bonds. 977 thousandths of l
per cent In 1895 the profit circulation
issued on each 100000 OF bonds was. for
2 per cent bonds, 4S4 thousandths of 1 per
cent. for per cent bonds, 162 thou
sandths of per cent; on per cent. bonds,
one and 160 thousandths of l per cent; on
per cent. bonds. one and 973 thousandths.
That is sufficient answer to Mr.. Bryan's
talk about the valuable privilege of is
suing notes. AS matter of fact, this val
liable privilege is so little priced by the
banks that many of them have no circula-
ton at all, and large number have re-
duced their circulation greatly below the
amount to which they would be entitled.
In January, 1874 the total national bank
circulation was $3.50 S4s, 600; in December,
1891, it was only $172 993. 000 Since then
there has been some increase. and the to-
tai amount now outstanding is S215,0 00o
This is about one-third of the circulation
to which the banks would be entitled under
the law if they cared to take advantage
of the valuable privilege" Many national
banks sustain a loss on their circulation
every year. The government collects tax
of l per cent. a year on the circulating
notes of every bank, and matter how
poor business is this tax has to be paid
There are more national banks at present
than at any previous time and the amount
of their circulation is far less because
there is no money in it. Mr.. Bryans wild
talk about the valuable ''class" privilege
of issuing national bank notes is a new il
lustration of his ignorance.