The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1873-10-18
CHICAGO DETROIT AND CINCINNATI SATURDAY OCTOBER

u
tion against its authors throughout tn,
length and breadth Of the land. We thinl
the reasons here given are of themselves
sufficient to warrant us in denouncing tn,
system as an extortionate monopoly, anG
in demanding its adjustment. But,
anything farther were needed to convincs
the most deeply interested and tenacious
friends Of the system of the correctness Of
this conclusion ard justice of this demand
it is furdished by the statements in your
article respecting the profits Of the banks
You say, in substance that the banks now
in existence are mOnopolies only to the ex.
tent that they have the exclusive right to
issue notes to circulate as money, and think
that, as a rule, they would not oppose the
repeal of this monoply-clause.
We think it quite safe to assume that the
banks will not only consent 20 the removal
cretly advocate it for, instead Of destroy
ing their monopoly Of the currency, it will
extend and render il permanent in the
hands Of the holders Of the Government
bonds. With the repeal Of this restriction,
the bankers will demand that the legal
tenders now in circulation shall be
withdrawn to make room for an equal, if
not a much larger, amount Of their cur
rency the effect Of which will be to give
the holders Of the Government bonds abso-
lutte control of the wholecirculating medium
Of the nation, and to compel the people to pay
double interest on the whole amount Of
currency now in circulation to practically
establish a money -oligarchy, with power to
encourage or frustrate all other business
interests at will.
Again, you say, that, for the performance
Of legitimate banking business, their
charters as National Banks are Of no sort
of account that they are required 10 keep
on hand a reserve in lawful money equal to
25 per cent. Of their circulation that the
only profit they derive from the privilege
of issuing the currency is 10 cents on each
Sll5 invested in the bonds deposited with
the Government and that you fancy they
wonld not offer much resistance to a bill to
take their circulation and taxes away from
them. That they can loan their own mo
ney, receive deposits, buy and sell ex-
change, and perform all the legitimate bu-
slness of banking, as well without as with
charters from the National or State Gov
ernments, we do not doubt This is
privilege that every individual or associa-
tion of individuals has perfect right to
freely exercise.
But that the banks will consent to sur
render the privilege Of issuing the currency
without a determined struggle, we do not
believe for all past experience has shown
that they will resist this with all the power
and means at their command. Nor can
we believe that their profits from this
source are so infiniJesmally small as you
represent them. We think you could not
have had the Bank-law before you when
you wrote your article for as we under
stand the law, only the banks in few Of
the large commercial centres are required
to keep on hand reserve Of % per cent
of their circulation. All others are re-
quired to retain a reserve Of but Is per
cent. of their circulation outstanding. and
three-hfths Of this may consist of deposits
in other banks, subject to sight-draft As
a greater portion of the currency is issued
by this latter class Of institutions. we are
of the opinion that the reserves, as
whole, are not over one third Of what YOU
= 70 them. Besides, these reserves are Of
2 manner of use whatever. They add
nothing to the value Of the currency, which
derives all its security and credit from the
Endorsement of the Government
We will not discuss this point further,
as it is not 50 much our purpose to show
what the banks make by the system, as to
point out what the people or tax payers
lose by it, Assuming your statement of
the profits Of the banks from this ,urce
to be correct, it is the most unanswerable
r Al. Z
the system We have met with We have
shown that, if all the currency had, in the
first instance, been issued through the
banks, it would have cost the people 6s per
cent. (n currency more than if it had all
been issued IN legal-tenders, which, with
the gam arising from the loss of currency
by fire and other casualties, ESTIMATED at
OF | pr cent. per annum), would have
been equal to I per cent. per annum.
TO make this still more clear, we will
add that the Issue of the S4O0, 900, 900 le-
gal-tenders now III circulation did. in the
first instance, obviate the necessity for the
issue Of a like amount Of per cent. coin
interest bonds, thereby saving to
the people the interest that would have
accrued on that amount W bonds while
the banks created the necessity for the is
sue Of an equal amount Of the class Of
bonds named-thereby subjecting the tax y
payers to a loss Of per cent per annum
lin currency on all the currency issued
through the banks.
If, then, you have stated the profits Of
the banks correctly, the system is impos-
ing burden Of S53 on the tax ayers for
each dollar the banks gain by it. This is
worse than the so-called labor-protecting,
but in reality labor-robbinS tariff for it
is only claimed that that system takes from
the consumers S2 for 81 that it brings into
the National Treasury. 1t is likewise in
hnltely worse than the railroad monopoly f:
for, while the railroad companies do prac-
tice unmerciful eXtortion in many cases,
they, at the same time do render the peo-
pie some service while, from the National
Banking system, they derive no advantage
whatever
With all the information we have been
able to obtain, and after the most careful
examination Of the subject, We can bat
look upon the system as cunning contriv-
ance for the robbery Of those who produce
and distribute the wealth for the aggran-
dlzement OF the few nOn-prnducers, or
money -mongers. Hence, our determined
hostility to this as we'll as to railroad, So
called, protective tariff, and all other like
mOnOpolies, systems and schemes that have
for their object the oppression and spolia-
ton Of the many for the benefit OF the
few
We do not believe in attacking the minor
wrongs and leaving the greater evils un-
disturbed. We are for thorough reforma-
tion and redress Of all this class Of griev-
ances
l have frequently used the plural pro
noun for the reason that have consulted
and counseled with many Of my neighbors,
all OF whom agree substantially with the
views here set forth.
If, however, our information has been
at fault, or if we have. in any respect.
misstated the facts, or exaggerated our
rru@a. g. q I.