Herald of the times. [volume] (Newport, R.I.) 1830-1846, 1840-03-12

other. There 10 no getting away from this,
deceive ourselves 40 we may--thls being a
tax which the products Of labor must pay for
the use Of cspitsi, labor alone being the
source Of all wealth, without which capital
itself becomes useless and produces nothing
We will now SEQ what proportion OF the pro-
ductive labor Of the country II will require
to pay this interest, to find which divide the
value Of the whole annual amount Of pro-
ductivs labor by the interest due the Banks.
Interest Annual amt. OF
due the products
Banks oflabor
$4,000, ,000) SOC, ,000, ,O00(4l and over.
Thus under the false system" Of banks
and "bank rags," one forty first part Of the
whole product Of the peoples labor is ex-
pended in paying the interest due the 'aris
tocrnite" stockholders Of the banks.
We will now compel these banks by the
operations Of q Sub Treasury, to keep their
"rag promises TO pay" at home-by paying
out in lieu Of them what specie they have in
their vaults and by receiving the balance in
payment of dues from their debtors. The
stockholders of these Banks will then have
loaned to the community their capital stoc k
only. amounting to O,000, 900 dollars. The
writer believes no one will contend that the
rate Of interest iciH be lesstned by this opera.
tion. We will therefore call the rate Of in
terest the same az before, & per cent, which
makes the sum to be annually paid the Banks
by the products Of labor, e30,O00,000.
The circulating medium of the whole coun.
try will now be lessened one half, conse,
qurntly the products Of labor will be diInin.
islsd one half in volue, AZ Dir. Buchanan
states.
We must then divide $3.50 000, 900 the sum
~ II
ally, by the thirty millions dollars for interest
due the Banks annually
Interest Annual amt Of
due the products
lsay) 00,O00)750 900 O0O(25
These "aristocratic" Bank stockholders, il
seems instead Of absorbing one forty second
pa.t Oft products of industry as efore,
now get one ttosnty fih part, and likewise
are saved the expense of RAGS, (which are
both scarce and dear in this country-but
very cheap and plenty in specie countries as
the writer can bear witness,) to manufacture
into bills, and also the expense of great
part of the officers they have hithcrto paid,-
~ these moned institutions will then be redu
eed simply TO banks OF discount and deposi,c
--the Beau Ideals Of Mr.. Benton and Mr..
vsn Buren,.
We will again suppose the specie circuIa-
ting medium to be lessened one half, which
would be probably nearer the amount that
would fall TO the share Of the United States
when the balances are properly adjusted with
other nations. This would again reduce the
vnlue of the products Of labor one half or to
325, ,000, 900 dollars, which sum divide by the
sum OF the interest annually due the stock
holders Of the banks MS before
Interest Annual amt Of
due the product
lssy) 30,OcO,OOOy325, 900, ,OOO(lO and over.
These stockholders, it now seems, receive
nearly one tenth Of the products of the peo
pies labor.
On the other hand we will now suppose
that instead OF the one hundred millions, the
banks should issue 300000,O00 dollars of
their "rag promises to pay "-(not that the
writer would approve of such a course in the
present state Of society as he considers a uc-
dun in all things best, this added to their
capital stock amounts to eC0,CC0,OC0 dol.
Iars, which at 6 per cent interest is 4S, 900 600
dollars, annually. The circulating medium
being now double what It was in the first cal
culn,on,--the products of labor nre Of course
doubled in valne by Mr.. Buchanan's own
showing, which is correct.
The produc, of labor now amounts to the
sum Of 5000. 1000. 900 dollars, which divide by
the interest 46,000,O00.
Interest Annual amt Of
due the products
(say) 4s,OOO, ,OO0)3OOO, ,OOO,oOO(62
These Bank monsters thus receive one sixty
second part or the products Of one days la
Dor Of the people in 62-whcrcas they before
received the products Of one days labor of
the people in forty -one, and where they
would receive in case they issued no "rng
money" at all, the product Of one days labor
in ten-as has been stated-thus showing
that so far from robbing the farmer and Ia. |
borer by issuing their own bills as q circula-
ting medium, the Banks in fact get but abou, l
one fourth 10 one sixth part Of the products
of labor they would receive were they to
issue no rag money whatever. Thus proving
that so far from these institutions being cal |
culated to concentrate the products Of labor
into the hands Of the FEW, their tendency
10 clearly to dffnsc it into the hands Of the
MANY, and to leave a greater share with
those who have produced it, to whom it right
ly belongs.
But these Banks do not probably hold one
half Of tho debts of the country that draw in
tsrest, there being immense amounts OF
mortgages and notes Of hand held by indi
viduals and Mr.. Van Buren, likewise says.
(and .Nr. Van Buren bring President can't
he that we owe to foreign nations alone
200 000, 900 Of dollars, but as the writer has
sought to keep within bounds in all his state
me nts,we will call this sum but one holf Of Mr..
Pnn 3uren's estimate, and the whole aggre.
gate amount Of the sum due from tho debtor
to the creditor part Of the community, will
not then probably amount to less than from
1000 million to 100000 Of dollnrs-thc 1
interest Of which amounting to 10000 900 4
dollars annually, at least, is to be paid by the
products Of labor in some shape or other.
Now by the snme rules being applied as
before, we shall find that this interest will /
absorb of the product Of industry when the
Banks issue SOC, coo 900 dolls. Of "rag bills"
the product Of one days work Of the people
in fifty.
When the Banks issue 100000 900 dolls.
in "bank rags" only, it will absorb the pro.
duct. Of one days work Of the people in hcen.
ty .6r,! Il
When the Banks issue no bills whatever.
and The specie circulation in the country
amounts to 100000, 100 dollars, it will absorb
the products of about one days work Of the
people in TwrLvx!! II
And when the specie circulation is reduced
IN fftv ulltnps NJ ,yil ahso,h ope "A, Ne ,y IL