The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1870-01-08

money is becoming scarce, and that the
bank discounts but one-half the paper
offered. In reality the amount of money ia
not the least diminished, nor the amount Of
discounts required increased, but the banks
and the capitalists keep it in their own DOS
session to make the money-market tighter.
that they may re-Ioan to the business com.
munity at higher rates. If for two DAYS
they discount only one-half their usual
amour Of paper, it is felt in the money
market. Those who are disappointed in Oh
tanning discounts, must procure money else
where. They are driven to brokers and
large capitalists, and are obliged to nav
perhaps twelve per cent. per annum for
money which has been borrowed by favored
brokers and capitalists at seven DER cent.
per annum
The merchant and the mechanic again
offer at bank for discounts, and are a second
time disappointed. Upon inquiry they are
again informed that money is becoming very
scarce, and that, besides, in looking over
their deposit accounts, the officers end theirs
small, and that others who keep much larger
accounts are now asking for discounts. The
merchant and the mechanic reply that they
have heretofore kept good balances, and
should be glad to continue them, if the bank
would discount for them. But thew are
told that their balances were never as large
as those kept by certain capitalists and
brokers, who, although they kept large
balances, seldom asked for discounts. Now,
as money is scarce in the market, and they
need discounts, the bank must favor them,
for it is bound to attend to its own interest
and merchants and mechanics must attend
to theirs. In these hard times the banks
must discount for those who keep the largest
deposits, and offer the best secured paper
as merchants and mechanics will sell theil
wares, or goods, to those customers who
serve their interests best. 1t is as much The
duty of the banks to consult their interest
and the interest of the stockholders, as it Ii
that of merchants and mechanics to consul
their interests, and the interests of thei
families. This reasoning sounds plausibl,
enough, and seems to satisfy the people
If the articles dealt in by both parties wer
the actual productions of labor, and neithe
Of them was created by law, these argument
would have some force. Or if any man VIII
had a package of calicoes could issue paper
money bearing no interest, and pay his debt
whit, and the mechanic could make pape
representative Of bis steam engine pass a
money as easily as bank can engrave an
sign bank-notes, and make them pass a
money, this reasoning might be sound. Blu
when the article traded in by banks is
legal tender for debts, or is Of necessit,
used as such, and the articles dealt in b
others are the products of labor, and not
tender, nor used as a tender in payment {
debts, then such arguments are false an
ought to be powerless. They do not bea
upon the facts for the holders of the pre-
ducts Of labor, or Of their avails, are deper
dent upon the banks who make and posses
the money which is product of law.
requires little labor to create millions (
dollars. The labor to make five thousan
: dollar bank note is the same as to make
one dollar note. But the difference of labo
between raising five thousand bushels I
wheat, and one bushel is very great. U
the bank-note for five thousand dollars is q
much legally worth FIVE thousand times MOI
than the one dollar bill, either to lend upo
interest, or to purchase products, as the ffv
thousand bushels Of wheat are actually wort
five thousand times more than one bushe
Gro BE CONTINUED