The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-09-11
SILVER SPRISG. Nd, Aug. IA, 1869.
JOHN Mcguire, EsQ:

JOHN Mcguire, Esq:
MY DsAB SR !: have received you letter
OF The 9th lost, in which, as q member OF
the Executive Committee Of the National
Labor Organization, you ask me to attend
the convention about to assemble at Phils-
delphia, or to express nv views, in writing.
touching the objects Of the organization
Your organization is right in addressing il.
self at once 70 to the financial Question. and
you say with Truth that " the congress Of
the United StsAs, by transferring power to
corporations, which control the money Of
the country, have created thereby a worse
monopoly than the old United States bank -"
aud you justly compare the fatal policy i'd
opted oy the usureIs 10 subject our govern
ment, after the wal OF 1912, to their sway,
TO thst adopted during the late war
honcyed men must always have . simple
process necessitOus states or individuals to
get possession Of all their resources. 1t il
bond and morIgae when the estate Of an
ind viduaI Is 10 be transferred to an individ-
al creditor. When q great body If credit
Ors combine and grasp tho credit and re-
sources OF . nation, in addition to the obi
CATION Of bond and mortgage OF all the as.
sets OF the rational treasury, banking DOW
ers are incCl POrated, giving them sway over
the whole financial system and credit Of the
government
By this process they get not only interest
on the whole amount of bonds, tar greater
in amount thAa they loaned the govern
ment, but they get the power TO tax the
people by neindefinite amount Of loans and
paper issues, and 30 increase the usurv I'D
LbitHM. The late Senator Guthrie, OF Ken
lucky, distinguished as the ablest secretary
OF the treasury Of our Ii,nes, assured me
That the national banks, receiving their reg
ular dividends IN specie on the governments
bonds, then lending tie 90 per cent 10
notes returned to them By the treasury wher
they ile their bonds, with loans on the gov
ern~eut aod individual deposits, and profits
on bills OF exchange, compouhding the in
teTest through sixty days discounts, paid
IN advance, cleared at least forty per cent.
on tie amount Of tteir capital And
know Instances IN which the cspItsl was
doubled the first year. This - the crush
ing taxation that il running the country.
This modern systrm Of national banking
on tie bonds Of the treasury, paying inte.
rest, aud then convert into cacital, and
next almost duplicated by nine.tcnths of
the government in baak notes, turned over
to them Tor bank circulation, with The whole
credit Of the nation and all its deposits to
back then, you may well say il is more
absolute, aud therefore worse monopoly Of
It's whole monetary concerns, thsn was ever
conceded to the bank Of the United States.
The older national banks had 10 hold a
competition with state Institutions, AMI a
contest With the state government ia its at
ttmpts ~ subordinate them TO it's purposes.
Now, IN effect, the rational banks have at
sorbed ali the state establishments
II was the sttempt of tie Bauk II the
United States 10 sutjrct the state banks and
the states to Its power that began the war
against the mammoth institution which
grew out Of the war debt Of 1912
The first efforts to restrain it's power were
made by the states OF Kentucky and Ohio
The United States Bank under ITS president,
Mr.. Cheves, lad Quilted tie state insiiIutiens
and it may be SAID The states themselves,
and rid them OF all their coin AID trans.
ierTed It 10 wagons over the AIleghanles to
the parent bank in Philadelphia. Toe states,
TO resist this high-hAnded measure. imposed
tax On the branch banks Wit il their
limits.
Inc federal courts took tue part o( the
great corporation, and under the lufl uencs
Of its commanding attorney, Mr.. CLAY, the
state Laws were aanulled, aud the state trea
sury, that OF Ohio, entered, and the tax im-
posed, amounting 70 800 600, taken from
IL This decided the tate Of the tax law in
Kentucky. The state courts aud tie state
banking institutions became subj sct to tbs
national institution, and TO subject th. D .Ople,
il brought immune. able suits against Is ctr
zens, debtors 10 the branch banks eslab-
lished within the STATE.
The people and their representatives re-
solved on resistance, aud to supply circu.
lating medium for the business Of the coun-
try, cvin and the national bank circulation
being alike Withdrawn by the policy Of Mr..
Chevesl, Bank Of the Common wealth OF
Kentucky was incorporated BY the legsla-
ture, aud replevin laws inteTPose TO pre-
vent immediate sales under executions,
The latter were ssSalled ia the state
courts but before fnsl decisions could be
had the bank OF he commonwsa was OTga-
nIssd and the people bad breathing spell
apd were spabled 70 raise crops lrOW their