The citizen. (Frederick City, Md.) 1895-1923, 1913-01-17
THE NATIONAL BANK LAW

The National Bank Law is under in
vestigaion by Congress. and is being
publicly discussed among the people and
in the public pres.
Suffice it is to say that the law and
its operation has been the subject of
discussion for more than thirty years,
but never until this time has the defects
of this banking system and the obiec-
tons 10 it become so acute as lust
now. Some of the papers are now crit
icising the statements and the objections
OF Mr.. Wilson, the President-elect, made
in his address last Saturday night Jam
uary nth. in Chicago, Illinois, in refer
euce to the National Bank Law.
From the time Of the passage of the
National Bank Act until the present
time, this law has been condemned by
the people, because of the great privi-
ileges contained in the law in favor of
the banks
Il prohibited the establishment of
State banks ali over the country. and
gave entirely too many advantages to
the National Banks. 1t enabled the
banks to make too much money and
also the privilege of buying United
States bonds to hold as a reserve, in
stead OF gold. and at the same time 10
draw the interests on the bonds, which
was in reality more profitable than if they
had been compelled to hold gold
reserve.
1t was, in fact, giving double interest
on the reserve and the result has been
in all the world banking system by
which vast fortunes have been made
by the banks. 1t is also literally startling
TO read of the millions and billions of
dollars that the National Banks have
f. accumulated in the last forty years
Some of the banks have more than
doubled their capital stock a hundred
, times. twas testified by the president
Of one bank in New York last week, that
bank had doubled its capital stock,
which was FIVE hundred thousand dol
lars, eighiy-nine times in dividends-in
other words it had made and paid in div
idends eighty-nine millions OF dollars
which doubled It's stock more than one
t.hundred and seventy-eight times in
,thirtyeight years.
j, According to the ordinary rule of SIX
iper cent. interest for money. this five
HUNDRED thousand dollars would have
igielded in interest in that time. even by
compound interest, only about three
million Of dollars.
But allowing them to make something
lore than that to pay exp -nses. add a
slillion more, and we still have seventy
3 r seventy-ive millions of usurlous
& toit TO the bank over 8 per cent.
hich was made by one New York bank
Gone.
Ii In view Of these facts, what must be
ssh vast sum Of millions made by all of
SSsu National Banks of the United States?
2 is sum thatno people can stand, and
~ ist inevitably in a few years bankrupt
n erybody but the banks
mot only that, but the banks have
ated system by which they control
Mt only all ofthe money, but also all of
lhcredt of the country. and no man or
AN number Of men, can get the money
es he credit to start any enterprise that
he, hires large sums of money or credit I
], VI SIS he gets the money or the credit /
coas those in control of the National .
ow Ks, and in control OF the credit OF the +
len e)n. It has been testified to before a
e"i mittee of congressman, that some
10 I wanted to establish steam ship
which would have been Of great
~ At to the people but the banks re-
spisc to allow il to be established. be- .
ev. j. it would compete with the other
remi oortation lines, in which the banks .
llns Ne bank officers were interested
- tfher words, the banks have estab- +
a money trust, and only those who .
ID 4 pull with the large banks Of New
IN ~ can get any help. This is mon
rmats condition Of finance, and it is full
es. - greatest possible danger to the
e hi.
|ng fl National Banks have been ex.
was 81