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

i
advantage of the transaction.
Very truly
(Signed) HARVEY Fisk & Sons.
To demonstrate the protitableness
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:
If, in making the change of the old
bonds for the new, the new bonds
would cost 106, the profits would be as
| follows:
800, 900 Is would cost at 1O6.. .SlO6,OO0
Less circulation issue against
ulle same. ............. a.. 100000
Actual cash Investment. 5000
| On which income would be received
aS'follows:
Interest on 100000 Is per
| annum. ................. S2,UOO
Less tax per cent on cir
culation. ......... :. $500
| Less sinking fund toretire
| premium 1.-THE $4,000, to
| be imposed at per cent. l01
Less expenses, cost of print
| ing, etc. .... ..,...,.... lOO
$707 707
Net income. ......... $l,293
Equivalent to 21! per cent. on invest
ment of $4,000.
1t will be noted that the only Diff
ference between the figures of the
PLAIN DEALBR-as 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 2 per cent. 30
year bonds at par, while Fisk s. 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 Ia, 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 $5l, 99T, $50 in bank notes have
been issued, and like issues of notes
are called for upon all but $7O,664, $50,
which belong to individuals who 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 $780, 100000 in premiums and
1924, 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.
It will not be overlooked that this
1888 is the annual interest this much
Wanted act of March Ia gives for the
Investment of $4,000. The interest OF
every four years amounts to SIP,
and in thirty years to s3S,79O. This
is whot the financial legislation of a
republican congress in part has done
fer the bankes. In part, we say, be-
cause in addition to the $4,000 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 notsurprising, but
that the Times, or that any other re.
publican paper, protesting deSotior
to the public welfare, should defend
such an iniquitous measure is matter
of wonder and surprise. These words
of Abraham Lincoln are more than
ever true and aptly applies:
"As a result of war corporations
have been enthroned and an era of
corruption in high places will follow,
and the money power of the country
will endeavor to prolong its reign by
working upon the prejudices of the
people until all wealth is aggregated
in few hands and the republic is de-
lStrOyed -