Twice-a-week plain dealer. (Cresco, Howard County, Iowa) 1895-1913, 1900-07-27

en- opportunity to garner the fruit of
other mems labor.
This they did in circular intended
only for the banking fraternity, cal
! ling attention of the banks to the in
creased advantages given them by the
new gold standard currancy act, and
showing the large profits to accrue to
them by issuing currency upon the
new securities which the Secretary of
, the treasury is authorized to issue for
the especial benefit of the banks. Adj
verting to the advantages of the law
the circular says:
Among its other attractive features,
| the bill provides for the issue of new
per cent 3O-year gold bonds.
The reduction of one-half per cent.
per annum in tax on circulation where
secured by these bonds.
The right to increase circulation at
any time.
Many banks have increased their
holdings of the old issues already,
which are to be refunded into the new
per cents, and while there has been
a material advance in prices of all
government bonds during the last few
days. they are Still obtainable at pric-
es making the twos very attractive as
basis for circulation.
! At present present prices, every dol
lar invested in circulation will realize
over 20 per cent. per annum. In no
other way can such rates of interest,
absolutely free from risk, be secured:
and it behooyes the banks to act
promptly in order to secure the full
advantage of the transaction.
Very truly
To demonstrate the proitableness
of exchanging IS Is and 3s for the new
Is, and issuing notes upon them the
circular presents tables showing the
high rate of interest the banks will
receive on the money actually invest
ed. 1t says:
IT. in making the change of the old
bonds for the new, the new bonds
would cost LOG, the profits would be as
follows:
300, 600 Is would cost at 1o6.. .s1O6,o
Less circulation issue against
Gile Same. ............. -. lOO,OOO
Actual cash investment. IS G,O0O
On which income would be received
aS"follows,
Interest on 100000 IS per
annum. ................. $1,000
Less tax per cent on cir
culatlon. $500
Less sinking fund toretire
premium 1.-THE $4,000, to
be imposed at per cent. 107
Less expenses, cost of print
ing, elc... ,.,...,.... lOO
1907 7o7
Net income. ............. 1928
Equivalent to 214 per cent. on invest
ment of $4,000.
1t will be noted that the only Diff
ference between the figures of the
PLAIN .DEALEReas to rate of interest
and the amount on the investment
and the statement of Harvey Fisk &
Sons is that our article assumed that.
the government bonds could be ex-
changed for the new per cent. 30
year bonds at par, while Fisk & Sons
allow premium of per cent. on the
new bonds. 1t will be noted also that
by allowing this premium they make
the actual investment for 100000 in
notes as only $4,000, while, if the
bonds are exchanged at par, the in
yestment will be as we stated, and the
interest precisely as we stated.
From March Ii, when the refunding
operations began to, June Ia. the ex-
changes had been 1927, 124, $50, which
had been made at par. and upon these
bonds S5l ,997 $50 in bank notes have
been issued, and like issues Of notes
are called for upon all but $70664, $50,
which belong to individuals vino are
not bankers. Fisk & Sons did not eX-
agerate the advantages of the new
act to the banks. 1t reduces their
taxes as the bonds are exempt from
that burden, and it made clean gift
of nearly s90,000,000 in premiums and
s24, 100000 in note circulation and
makes Fisk & Sons bank trust with
power to contract or expand the circu-
lation supply at will, and as the inter
ests of the banking fraternity may
suggest, regardless of how it will at
feet the public welfare.
1t will not be overlooked that this
1898 is the annual interest this much
Wanted act of March IA gives for the
investment of $6,O00 The interest of
every four years amounts to $5,172,
and in thirty years to s3S, $780,, This
is whot the financial legislation of a
republican congress in part has done
for the bankes. In part, we say, be-
cause in addition to the Sc, 900 invested
the bank would have 100000 in notes
or currency to loan out to the people
at from to 10 per cent. per annum.
That the national banks should en-
dorse such an infamous scheme of rob
berry and plumber is not surprising, but
that the Times, or that any other re-
publican paper, protesting deSotion
to the public welfare, should defend
such an iniquitous measure is a matter
of wonder and surprise. These words
of Abraham Lincoln are more than
ever true and aptly applies:
"As a result of war corporations
| 1,ny lnn Il j e