NATIONAL BANKS. 471 



the coupons, as to him may seem expedient Approved, 

 March //, 1874. 



SECTION 2. * * * And all stocks, bonds, and 

 other securities of the United States held by individuals, 

 corporations, or associations, within the United States, 

 shall be exempt from taxation by or under State authority. 



It will be seen, by the above acts of Congress, that 

 the prominent features of the banking system are: 



i st. They are privileged to either extend or contract 

 their circulation. 



2nd. Government bonds are made the only security 

 in the establishment of a national bank. 



3rd. They draw interest on the bonds thus deposited, 

 and this interest may be paid one year before it is due. 



4th. They receive ninety per cent, of the amount of 

 bonds deposited in currency, which they are enabled to 

 loan to the people. 



In addition to the above, they pay no taxes on their 

 bonds, none on their capital or deposits, and only one per 

 cent, on their circulation. Some of these banks are also 

 designated as government depositories, and receive the 

 benefit of the use of millions of dollars free of charge. 



Notwithstanding all this legislation in the interest of 

 the banks, it is claimed that they pay but small dividends 

 on their capital. The report of the Comptroller of the 

 Currency for the year 1887, places the dividends on the 

 capital invested at less than eight per cent These 

 tables are made use of by the politicians to deceive the 

 people with regard to the enormous profits of the sys- 

 tem. We will now proceed to examine into the workings 

 of the system and learn, if we can, where the profits go. 



We quote the following from the Chicago Tribune of 

 July 13, 1888: 



1 ' The National banks of Chicago are averaging not 



