THE FARMER AND THE RANKER. 141 



ment, upon which it dmws interest, and $15,000 retained in its 

 vaults for redemption. Its profit is tlie interest upon $75,000 to 

 $85,000, provided it can keep that amount constantly loaned. 

 It pays to the government an annual tax of one per cent on 

 its currency in actual circulation. The national banks are 

 assured of a monopoly of the privilege of issuing bank-notes 

 b}'- means of a tax of ten per cent per annum ui)on all issues of 

 state banks. This tax renders the business of issuing notes 

 unprofitable, and as soon as the tax was levied, all state bank- 

 notes were called in. In case of failure of a national bank its 

 outstanding notes are redeemed by the government from the 

 proceeds of the bonds deposited as security, thus making them 

 absolutely safe. Under the state bank system nearly every 

 note issued was successfully counterfeited, and the loss to the 

 public from this cause was very great. The notes on an Ohio 

 bank might be counterfeited in New York, and put in circula- 

 tion in Iowa. If the counterfeiter was not detected at the place 

 of issue, he would probably never be caught, and if arrested, 

 the " plant " for counterfeiting could seldom be located. The 

 work of detecting and punishing these criminals was wholly in 

 the hands of the state authorities, who found it very difficult to 

 pursue criminals beyond their own boundaries. Enterprising 

 persons published " counterfeit detectors," which were issued 

 weekly or oftener, and were at the elbow of every one who 

 handled money in any great cjuantity. No one would receive 

 a bank bill from a stranger without consulting the last num- 

 ber of his '' detector " to ascertain whether that bill had been 

 counterfeited, and, if so, as was usually the case, to obtain a 

 description of the counterfeit. Every bank had its " rating," 

 that is, the rate at which, if at all, its bills would be received 

 for deposit by New York banks. None outside that city were 

 taken at par, a sufficient discount being always taken to pay 

 for cost of collection; all country notes reaching New York 

 being promptly returned to the bank of issue for redem})tion. 

 The strongest banks maintained redemption agencies in the 

 principal cities, thus maintaining the credit of their notes. 

 The notes of the weaker country banks were at various rates of 

 di.scount in the large cities, and brokers did a thriving busi- 



