Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1897-04-07
PAY YOUR DOLLAR, MR.. cREssEr.


if we will say that we have read the
laws relating to national banks. We
want to make the assertion right here
that we have read those laws repeatedly
and we believe we are just as able to
analyZe them as is the ''Associan" edi-
tor of the Cresset. Pay your coin. then
read the laws relating to national
banks" once more. If you read Alright
you will make the following discoveries:
That associations. for the purpose of carry
ing on the business IF banking, may be formed
of not less than FIVE persons In cities of more
than $4,000 people, the capital of a national
bank shall be not less than 100000. That in
cities of less than $1,000, and over 5000, the
capital may be 100000. and cities of less
than 5000, the capital may be $4,000
That such associations may have existence
for 20 years and the capital shall be divided
into shares of 500 each, the stockholders to
be ratably and equally liable to the extent of
their stock FOR the debts and contracts of the
bank.
That before the commencement of banking
the bank must deliver TO the treasurer of the
United States, government bonds, to the
amount of not less than $4,000 and not less
| than one third of the capital stock paid in.
| That should such national bank desire to
| circulate notes 1t will be entitled to receive
| from the United States comptroller, 90 per
| cent of the par value Of the bonds so deposit
| ed.
That such national banks notes shall be re-
| ceived at par, in all parts of the United States
| in payment for taxes, excuses, public lands,
! and all dues to the United States, except for
| duties on imports, interest on the public debt,
and in redemption of the national currency.
| The rate of interest charged shall be that
| which is allowed by the state where the bank
| is located
| No bank may have circulation of over
| 100000. That every banking association shall
! pay to the treasurer of the United States. in
the months of January and July, one half per
cent, each half year, on the average amount
| of its notes in circulation.
We stated that the government &C
tually loans money to the national
banker at per cent. per annum and
the last paragraph of the above citation
| clearly proves our position to be correct
and our statement incontrOvertible.
| The Cresset says our statement IS alb
soutely false, and adds, land we can
prove it," If you have any proof trot
it out, but bald assertions are not
proof and judicial" opinions from
Judge" Axline don't go in Barber
county, and no place else, except, per-
haps, in gold standard Egypt.
The Cresset has a very awkward
method of trying to vindicate itself. 1t
says: Don't you know that if the gov
eminent loans money to national banks
at one per cent, that we would have a
national bank at every cross rGads?"
No, emphatically, NO! Such a condi-
ton could not be within the range of
possibilities even if the government
| loaned the money without interest,
| provided that the remaining clauses of
the national banking law remained as
they now are. Don't YOU know that
not less than five persons can engage in
the national banking business? Don't
| YOU know that said persons must first
invest not less than $50, 600 III L. S.
bonds before they can begin business?
Don't YOU know that $50, 600 isn't to be
found lat every cross roads?" We new
er intimated, nor do we ever intend to
say that other banks are not making
good money, but that is no reason why
the government should encourage an or
ganization of five or more persons in
plunderlng the people.
But after all of It's wishy- washy
mOuthlngs, the Cresset admits that the
national banks pay into the govern
ment treasury one per cent per annum
upon the average amount of notes in
circulation. That ought to settle this
controversy with any person Of ordinary
intelligence, whether it be called lin
terest, tax, money for the use of
money" or anything else. We call it
interest, so did Senator Plumb, John J
ingalls,, and last but not least, Thomas
E. Hill, the standard authority on ma
tional banking. The Cresset calls it a
tax and then swells up and says 1.-The
government does not loan money to
anybody at any rate per cent" Any
banker might enter the same plea; he
might say he does not loan money to
anybody at any rate per cent. but simp-
ly "taxes'the fellow who uses the mon
ey stated per cent. It's too thin; it
won't pass muster.
| Now let us be candid, let us look at
this national banking business as it is
conducted not like some republican pol.
iticiSns would like to make it appear tC
be. The association, which cannot be
composed of less than five persons, in
vests in U. S. bonds. These bonds
draw interest regularly and are exempt
ed from taxation; the bank is allowed
to issue 80 per cent of its bonds in bank
notes which it loans to the people al
any rate 1t may prescribe. Each state
of course, has established maximum
rates, but banks pay little attention tc
them. 1t is therefore plain to be seer
that the national bank collects Interest
twice on the same money-ouce from
the bonds deposited in the o. S. treas
ury, and again as he issues bank notes
and loans them to the people-while he
is exempt from taxation and pays l pei
cent per annum for the privilege. The
only part of the banks money which
does not draw double interest is the
ten per cent which he is not allowed tC