The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-02-06

i
national bank, and received from him e27O.-
600 in currency. without interest, upon pledg-
ing these bonds Of tho United States they had
just bought with their $500, 900 Of the same
KIND OF money. Nov, let US balance the books,
anu how does themccoun' stands WHY, the
United States Government receives csc, 900 in
national bank bills more from the banks than
u gave them ir bills in other words Il Dor
rowed Of the bank $50 900 Ia currency. for
which, IN fact, il paid Z 1, 900 year in gold
interest, equal To $S6, 900 IL currency, for the
use OF this $4,000. Let me S~epeat. The DIFF
Terence brtWeen what the United States re-
ceIved and paid out was only $50, 900, and for
the use OF that the governms nt paw on the
bonds deposited by the company bought with
the same KIND OF money. sis 900 year interest
in gold, equal TO $50 900 ia cur ency.
But the thing ud not stop there The gen
tlcmen we're strewd hnancieTs: their bank was
good one; they went TO the Secretary If the
Treasury and said 4" Let our bank be made
public depository Very ~ell il vas good
bank the managers we're good men there was
no oblc elton TO the bank. 1t made public
depository, and thereupon the eommssaries the
quartermasiers, the medical director and pur-
vcyor, and the paymasters we're all directed TO
deposit their public funds in the bank Very
soon the bank found that they had line Of
.teady deposits belonging % the government of
about million dollars. and that the $40 900
they had received from the Comptroller Of the
Currency would substantially carry on their
daily business, and as the government gives
three days on all It's drafts it the bank was
pressed it was easy enough 20 20 on the street
If they had good security. They took the mil
hon Of government money SO deposited with
them and loaned il 20 government for the
- a. 4
500 900 more interest in gold tor the loan TO
the government Of it, owR money, which in
currency was equal to $4,000 So that hen
we come haaily 20 balance the books, the gov
eminent Is paving Sts6 ,u0O a yenr for the loan
Of $4,000 And t1is j. the system which is
70 be faateued forever OIL the country as a
means OF furnishing Circulating medium
This, only using round numbers tor the pur.
pose Of illustration. Y an tctzAl aud not = feign
cd occurrence. You vii see il vas a perfectly
safe operation for the banks though not 4 very
profitable one Tor The Gov, rnment. because
they held ample security for the Governmert
deposits in it, own bonds. But the Difficulty
l., the Govcrument Vas paving interest all the
while on T. own deposits aud this state of
facts Is only rendered pos Die bv this system of
supplying the banks ~ith circulation bv the
Government without interest
The next reason advanced ~hy Ne should not
interfere with these banks if | understand il. is
hat We are told BY yer, high authority this svs-
TEN will become tie banking system of the
world; having lna gurated IT, we are so much
IN love with il thai All the nations will pattern
after il. Let the rest Of the world try il for
few years when We have a ne with il. ana then.
If the rest Of the nations adopt it, We can re-
turn TO it, but not till thea
Sir am I alaudariuu thsaa irstft,t;o-s
they not making money at rate which Is be-
youd al pTeeedcntf Let me state another case.
which Eht be An actual case, and perhaps |
sould c.. the name Of the man " ~ shrewe
man takes hi 500 geo and goes 70 The Treasury
and obtains bonds be then gets a bansing thar Z
ter, and receives his bills amounting to 500
GOO, then he buys with those same bill $40 900
th Of bonds, and comes home and sits in
his Office and that is his bank, and his money
il Ill ID circulation. says be WHY should |
trouble myself TO lend my money 70 the farmers
around me on sixty day notes when eau lend
L from ten 20 twelve per cent. IN long twenty
wear government uonds and Mr. Blame saws
sm 70 ~ paid IN gold for them that is a. GOOD
banking o.. ! want % 90 the bills never come
home they are going 81 over the West and
South, and am getting So 500 interest On
NV original 500 600 what do | want more I
aNI NNlAfiNi NANtt afA A4flifN 4 AlANh THIS bank
iur srstrm u the wisest one the world ever
saw, and that it ought 70 be adopted all the
world over"
But let "a taxa the banks own exhibit az
them Ives. | hold in my hand the abstract of
re- ports uf national banking associations for the
1t Of October last. Let US see their condition
They have tll9,0o0,O00 Of capital stock paid
IN they have been 10 Operation on an average
Of less than four years they have divided from
twelve 20 twenty per rent about twelve IN
New England, ard fraE 20 twenty per
cent. where money is sea esr .sad the rate of
interest rules higher. In addition 70 these div
Idenis. take their own statement. surplus
und. S66,00O 600 undivided profits, S3s OOO,-
300 " showing that they have got after all these
near twenty-five per cent surplus cf
that capital stock laid away What osher
business, taxed or untsxed, II any untaxed
business can be found i. this country will allow
1 year, dirid I'D 81 from leen 70 twenty five
per cent, and Surplus accumulation il four
years N cuty i've Ter cent. on the capital
Aud from whom and from where 40 these prof
It's come They come ultimately from where
40 tsXarion, all profits, sll productions must
come the labor 81 the country and nowhere
else and We ara asked here 70 perpetuate
system which takes these immense profits from
the labor Of the country, and puts them into
he hands If capitalists without preterse of
adequate benefit received by the people
We are tod that We mus preserve the ma
tional banks, because if We DO DOT there will be
nobody % circulate our money Let a. exam.
inc that a moment II money viii not circulate.
il is because nobody wants money. Nv anxiety
is To provide the people 9Th money that they
do want aud Nill circulate, not with money
they do not want | have never vet seen any
4
States wien che government has paid them
out when fld such man, I will agree to
charter bank for the purpose of forcing them
Ipoa him, and MT until then.
The truth l. that at the present hour the
country j. suffering from the wan. &C nose
Very notes. We have nomnaiiy some seven
hundred and fifty millions Of currency, but act
lally only about FIVE hundred ana fifty millions
10 circulation. We find that we have not cir
ruation enough. Compare it with what was
The circula ton before the war, about four hur-
bred and seventy seven million dollars. Now
we have only $3.50 coo, 600 in actual circulation,
though we are doing more than three times the
bushes calling for the use OF cash that we were
doing be ore The war.
Every one knows that the business of this
is done twice or thrice as much in oash
as il was before the war aud therefore | think
this country will bear from eight hundred to a
thousand million dollars OF circulation without
as soon as business revves, and
that viii make it revive. But my friends say
shat may be too much-' Perhaps il may be
but il Is very easy, it seems to me, for us j.
have that amount OF circulation without redun-
fancy; and AZ each legal tender note is, as We
uave seen, part o. the debt secured by mort
gage Of the whole property Of the United
States, without depreciation.
LABOR IN CALIFORNIA.
Il Is asserted that in Cslifornis any able