they really have it for their use.
» The interest on $50.09’0,000 for a year
ic $2,000,(XX) ami on the $46,000,000, say
E ditor T ai ent N ews :
at 7 percent is $3 220,090, which would
We often sec the u-st rt’lon bv
* thedc- equal B) per cent on their $5*>,oi0,(*00.
fender.’ of the nation *1 banks that there
'l he bonds are not taxable which makes
is no profit to them in their ci rculating
note?, because of the premium of from 15 2 per cent more in the hankers pockets.
l he tax of one per cent banks pay the
to 2 » per cent which they have to pay for
the Ihinds as a basis of circulation, end government is more than made up by the
which premium the bankers have to lose interest on Imnds anJ notes being paid
when the bonds arc paid off by the gov­ in advance. They lend the notes at much
ernment. This is true, but most people more than 7 per cent and really get an
infer from it that the banks are running average of 15 per cent on the amount of
the business for their health. They •> can their bonds ami notes. They invested
well afford to make* small profits off their $6o,<M)0,i>09 and draw interest on $9’9.000,
circulating notes, when their per cent of ! 009 and have the use of $5,000,090 as re-
..........................................................
fat thing in these hard
profits on all their loans amount to from serve. Pretty
10 to 100 per cent. The banks, national times.
But take the case of the national banks
and private, lend from three to four bil­
lions of deposits of the people which c< st that started along in 1864 5. A banking
them nothing, at from 7 to 25 ¡»er cent corporation would buy $100,000 in green­
interest, giving them a profit of from backs with $ 1!>,0< <) in gold, and buy $100,-
three to four hundred millions annually <XM) in bonds, and deposit them in the
on the people’s capital. Thus they live treasury and draw out 90 per cent, or
off the interest of what they owe! Now $90,000 in notes, and then draw 7 per
suppose the government should do its own cent interest for six months in advance
banking and pay the people 2 per cent on their bonds $3,509 -and buy $8,750
for time deposits, ami re-loan them for 4 more bonds with this interest, then draw
per cent, the government which is the 90 per cent of this in notes $7,975
people would save two thirds of this a- which would give them a total circulation
inount (for but a small part of thedepos- of $ >7,975 bank notes, on which they
its in the banks are time deposits} and would draw quarterly in advance 8 per
use it to pay
expenses of the g< vern- cent interest allowing for the 1 per cent
nay the e:
inent am I take the taxes off the people on tax, or $9,797. They would then have '
for their investment of $40,000 of gold:
what they * eat and wear. I But the * gov-
’
U. 8. bonds
$108,750
eminent has abdicated its supreme power
Bank
notes
.
97,975
and function given it by the people to
coin money and regulate its value and
Total........................... $206,725
handed it over to banking corporations,
This would be an increase on their in­
which expand or contract thecurrency of
Now
the country at will,.and thus control the vestment of over 5<K) per cent
property, the industries and wages of counting the interest on their investment
lalK>r. In consequence industries are we have:
$108,759 bonds at 7 per cent $7,641
paralyzed, and wages and land and the
97,975 notes at 8 per cent
7,838
products of lalwir are at 59 per cent dis
count ami bank stock at 50 per cent pre­
Total interest.................. $15,479
mium.
This would !>e nearly 40 per cent in­
But here is a little illustration which
shows that the national banks get a fleece terest yearly on the $ 10,009 actually in­
vested. The bonds were non-taxablv
even in these latter <lavs
• which • yields a which would add 2 per cent more. The
I retty good profit on their bank circula­
tion. By the recent bond sale the gov­ interest on the bonds ami notes was tun­
ernment sold the bankers of the East $50,- able in advance which would equal the
000.9.M) in 4 per cent bonds for $59,000. tax of one per cent on the circulation.
No wonder that the stocks of the na­
000 in gold, w hicli they could not lend un­
til John Sherman, Groxer Cleveland, tional ¡tanks have risen to such em rmous
Carlisle A’ Co. paid them -I per cent in­ per cents while property med for produc­
ter*-t nix months in advance $1 JMiO.OOO. tion has fallen 59 per cent. No wonder
By depositing the $50,000,000 bonds in that John Sherman’s bank stock in which
the treasury, they get returned to them Cleveland deposit*d $17,( OO,(.( 0 of gov­
K) bank not< , which add*d to ernment money and charged no interest
the $ 1 JXadv ance interest Amounts itt quoted at $2HM) a share which cost
to $1<>J
’ 0, which they lend to th< only $190 a share, and that the stock of
«1« ii | v p’c at fr* m 7 to 25 per cent, be the Chemical national bank of Philadt 1
sid* - the < ther $5,000,009 of the $50,000 phlA is quoted nt $ 17*MI a share win .-<■
* » .• counted with their reserves and par value was only $100 a share. ¥<t
T11K BANKS MOI GO.