Iron County register., 1898-02-24

ernment 100000, plus the premium,
receive 800, 900 in 1-2 per ct. bonds,
return these bonds to the custody of
the United States, and, while continu-
ing to draw his 81 500 per year on his
bonds, get 800, 700 in bank notes from
the government to do business upon,
and suggested that this was like eating
ones cake and having it at the same
time. We intimated that perhaps Mr..
Gage contemplated giving the banks
the benefit of the destroyed notes.
3. The Headlights reply was crush
ing. 1t stated that the national bank
did not get the benefit of the destroyed
notes; ergo. we were ignorant of the
whole question of finance. were wrong
in our premises and conclusions.
+. For the sake of argument, we ad-
mitted that Mr.. Gage did not contem-
plate the giving the banker the benefit
of the destroyed notes. but, aside from
that point, we asked the Headlight if it
was in favor of a scheme of banking
that would give the banker a business
capital of $3.50, 900 on an actual invest
ment of 100000.
5. The HIS reply was clear, lucid
and conclusive. 1t points out that
money to the amount of five per cent.
of the banks circulation must be left
with the Z. S. Treasurer for redemp-
tiOn purposes; that the national banks
have kept on hand about 20 per cent.
of their deposits to meet drafts; that,
as the sum retained for daily use in
business transactions is often larger
than the banks whole circulation,
therefore the double interest they get
on their capital through bonds and the
notes furnished to them by the govern
ment is all right. We admit that this
knocks us out, but in order to show the
was landed, we will put case: A goes
into the banking business, puts up
800, 600 in bonds not taxed, drawing
1-2 per cent, and gets $780, 900 in
notes, has deposits to the extent of
$600,000 keeps $200,00 of his depos-
itors' money by him, out of which he
let's the government have 4,500 for
redemption purposes, and loans and
invests the other $4O0, 900 and also the
100000 he started with The national
banker in this way draws the interest
on his bonds; he draws interest on his
depOsitOrs' money; he draws interest
on his circulation; and, according to
the Headlight, he does all this solely |
for the good of his country or for the
good of his health, and there is hardly |
a nickel for him in the business. Be- |
sides, as our contemporary well says. |
the legal rate of interest is and per |
cent. No banker was ever known to |
get one per cent. month for short
loans, and such a thing as discount is
Populistic lie. We wonder that the |
Headlight did not further crush US by |
calling attention to the fact that bank |
ers pay interest on deposits for stated |
length of time, and are compelled to
use postage stamps, pay office rent and
clerk hire.
The figures of little Mr.. Eckles were
turned over to US, we suppose, because |
the Headlight Office had figures to burn, |
for they had no more to do with the |
matter under discussion tnan the COW
with the crumpled horn has to do with |
the hole in the sky. The Headlight |
fails to state whether it is in favor of |
giving the banker the interest on his |
bonds while he draws interest on his |
circulation which the bonds secure. 1t |
lodges this matter, as all other rural |
Republican papers do. If it is proper |
to give back to the national banker 80 |
per cent. of the money he invests in |
government bonds, why is it not just to
give the farmer, the merchant, or the |
manufacturer, the same advantageP
Let every man stand upon an equal
footing. and let every man who has
bonds get the use of 81 80 for each
dollar of his capital, or let no man
have this advantage. 1t possibly may
dawn upon the readers of the Head
light that all banks, whether national
or private, are compelled to keep re-
serve fund to meet demands of deposit
ors and other emergencies, and that,
according to our contemporaries own
showing. the national banker gets
$165, 900 from an investment of $780,
900, plus the premium; and, not being
fools, they will perceive that the ma
tional banker draws a double interest
We cheerfully admit that there are
rascals among national bankers, some
of whom the Treasury Department has
endorsed as honest and upright for two
years after it discovered their rascality.