The representative. [volume] (St. Paul, Minn.) 1893-1901, 1900-02-15


761,00O,0OO Of the 1854, 900, 900 Of their
! depOsitors, not dollar Of which money
Is the property Of the bank, and for
every dollar Of which the depositor has
the banks certificate OF deposit, and
this interest amounts annually to
| $345, 100000.
| But there is still another large item
Of profit which belongs to the franchise,
or right to issue bank notes to circulate
as currency. Bank notes are payable
| on demand, without interest, and, often
when the bank using the note is con-
sidered sound, circulate for years with
out redemption; or, il redeemed, are re-
issued. Not a vessel is lost by fire or
! sh1pwreck, not a conflagration in city
or hamlet, not a fit Of insanity nor hard
ly drunken carousal, but that more or
less of bank bills in possession of the
| people concerned is lost or destroyed;
! and every dollar lost, no matter how, is
so much clear gain to the banker who
issued it for value received. How much
profit bankers receive from this source
can only be conjectured and depends
| largely upon the time the bank has been
in operation.
THE UNJUST PROFITS OF BANKING
There are three sources OF unjust
profits appurtenant to the franchise OF
| issuing bank bills as currency, and tc
| the business of banking as now con-
ducted:
First-Interest or discount on the
present. value Of the national bank bill
from the date of issue till redeemed.
Say, annually, $20,O0O,0 900.
Second-Interest on $5,751, 467, $40,
the money of depositors loaned by the
banks at per cent interest $345, 900 900
Third-Annual profit on lost and de-
stroyed bills, say 81 ,OOO, 900.
Total annual profits in United States
1896, OOO,0
This is annually the unjust profits of
the banking money powers Of the
United States, and independent entirely
of the capital actually invested by the
thereon. 1t is so much in addition to
what the common business man receives
! for his diligent attention to business
conducted upon the principle of equal
rights for all and special privileges for
none"
These profits are inherent to the pa
per money system. When the general
government issues it's treasury notes
scribed.
First-Difference between the present
and face value of the currency issued
for all the time it is in circulation.
Second-Interest on loans of all
money of depositors.
Third-Profit on lost and DESTROYED
bills.
But there is this one great difference:
bankers put all these profits into their
own pockets. They constitute their
private, personal perQuisites. In the
case of the general government bank,
revenue, and like other government
revenues, will go into the United States
treasury and increase the fund upon
which the secretary Of the treasury
draws to pay national expenses. A
governmental system of finance, if
adopted would save to the people $780,
100000 now annually collected from
them by the bankers and for their ex-
into source of revenue for the United
States treasury, and thereby for the
people. And 1t is only by government
banking that the unjust profits of the
bankers, inherent in the paper money
system, can ever be applied to the bene-
fit of the people.
INTEREST ON MONEY LOANED.
No question is of more vital import
ance to the nation than the rate of in
terest on money loaned. This rate has
been left to the usurers to fix and they
are now charging in all the civilized
world such extortionate rates as absorb
all the earnings of labor and, in most
cases, have reduced the prices of pro-
ducts below the cost of production. So
terrible have been the effects of usury
that many impracticable refOrmers
say: Abolish all interest upon money
destroy all legal tender and let every
man issue his own money. Such
schemes are impossible Capital in
money loaned is entitled to fair COM
pensation for it's use-but the rate Of
interest should always be at point
below the actual rate of the annual in
crease in the value of property, accord
ing to the United States census, which
would fix the rate of interest at between
two and three per cent per annum. Let
the United States government loan it's
treasury notes on good security,
enough below the rate of the annual in
crease in the value of real and personal
property to leave something to the bor-
rover for his labor and skill, and from
that moment the blighting influence of
usury would diminish and finally cease
RAILWAY FRANCHISES.
/ Years ago it was claimed by the rail-
way corporations that they owned
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