The Leon reporter. (Leon, Iowa) 1887-1930, 1900-07-26
National banks.

II q y
l What constitutes national bank
How do they get into existence2
First it takes five or more persons to
organize and start national bank un.
der the present banking law of not less
than $4,000 and up to 100000. The
first thing to do is to buy 1926, 600 of gov.
eminent bonds and deposit them with
the comptroller of the currency al
Washington City and receive $25, 900 in
national bank currency and get char.
ter from the comptroller authorizing
them to commence business in Leon OF
any other place in the United Stat es.
Then you have bank ready to com.
mence business with 5000 in bonds
and $4,000 in national bank notes
making a capital of $4,000 to do bust.
ness on which has cost them only $685..
600.
Now will some intelligent farmer, me.
chanic, merchant or any other business
man please tell the "dear people" why
these bankers should have $25, 900 given
to them for twenty years to loan to the
people at 10 per cent. or whatever the
bankers can get out of the business men
of the country for the use of their ma
tional bank currency?
Now let us see what it will cost to put
$lO0, 900 of national bank notes into
circulation:
Interest on 500, 200 bonds at
per oent .... $4,UUO
Exemption of tax on bonds, 49,. :. 5000
Interest paid to banker for use of
bank notes 10000
lotal $l7 600
Now the total cost of 100000 for
year is $l7 900 and bank running 20
years the total cost is $4,000.
Are the business men of this country
willing to pay that amount of interest
for the use of bank note circulation?
Now let us see what it will cost to put
500. 900 of full legal tender government
money in circulation. 100000 paid to
the soldier which goes right into cir.
culatlon every three months would cost
only the printing which is the same
am cunt, of per cent. $500, the same
that it cost to print the national bank
notes. The amount paid to the soldier
every year for 20 years would represent
a saving of the cost of interest on the
$lOO, 900 paid to the banker for 20 years
$34O, 600.
Now deduct the cost of printing $780,
600 every year for 20 years which
amounts to $4,000 and deduct that
amount from $34O, 900 and you haye a
net saving to the people of $3.50, 600 or
in other words the people could pay the
soldier 100000 legal tender money
and haye $4,000 in their pockets in.
stead of paying it to the rich bankers
for the use of national bank notes which
is not money, only substitute for the
use OF the bankers.
Bimetallism is simply the use of gold
and silver as full legal tender govern
ment money to do the business of the
people with the addition of enough Of
full legal tender paper money to supply
the deficiency in gold and silver as it is
an undisputed fact that there never has
been enough gold and silver to do the
business of this country and there is no
class of business men that know this
fact better than the bankers and they
are increasing the bank circulation to
fill up that deficiency and are boarding
the gold and paper money SO they can
compel the people to use national bank
currency at y high rate of interest with
which to do the business of this coun.
try.
Twill repeat the question, are the PEG.
pie willing to vote to continue the
present national banking system for the
benefit of the bankers after knowing the
enormous cost that system piles on the
backs of the great producing classes of
this country? w. +. CANNON.