The Emporia news. [volume] (Emporia, Kan.) 1859-1881, 1874-01-09
THE BANK QUESTION.
Col. Planb.-H. }. frey.

ing community and the laboring ella sses
should wake up speedily TO the impor-
lance of this subject.
Farmers, let us look at this matter q
little IN detail. The bank receives per
cent. interest Oh its capital from govern
Inent-the government furnishes the bank
10 per cent. OF Its the banks scapital,
Win paper money, for circulation, tree.
This money Is then loaned out by the |
bank to A. Ii. and c. at q discount, usu- |
ally or IL per cent. per month for one, |
Two or taree months at time, or at y lit |
tie over ~ Per cent. interest per annum, |
making 20 per cent. Cor more) interest in |
all on its inVestment, AM its mode of do |
ing business The bank gets this much, |
sure. on what it loans out; and it is equal
ly certain that this &c per cent. int crest
comes out OF either the producer or con-
sumner, or both.
To make this matter quite certain. let
US illustrate: The cattle dealer borrows
largely from the bank, paying, say, 20 per
cent. Interest. With this borrowed mon
ey ne goes to the farmer and buys his two
ana three year old steers, paying him the
cash minus the 20 per cent. he 1.-THE cattle
dealer( has to pay in bank for the use of
the money. A clear illustration, wherein
the producer pays the interest. Again,
the merchant, too, runs a large account
with his bank, paying the same rate of
interest, and OF course marking up his
goods to cover his discounts in bank. A
clear case, wherein the interest is paid by
the consumer.
But let US look at the workings of this
system OF banking from another point of
view. Some months before the present
panic, and during a time of peace and
prosperity, gold was quoted in New York
at Skll, making our paper money worth
only 80 ceRts., taking gold for the stand
ard-the banks actually shaving their own
paper ID per cent. Nor is this all. The
miller and the merchant are both heavy
borrowers at bank. The former does
not pay as much for wheat as he could
or would had he no discounts to pay in
Dank, while the latter increases the price
OF his goods just enough to make good
Whatever discount the bank charges him
Now, taking the ID per cent. deprecIa-
ton in the paper money itself, the dis
| counts the miller and merchant have to
pay the bank, and we will find that bush
Ell OF wheat which the farmer thought he
had received q dollar for, sure, whitfield
down to about50 cents. Now all this is
| traceable directly TO our present Insidlous
| system of banking. Nothing has been
| said here OF the profit the merchant is en-
tltIed TO on his goods, his rent, insurance
on goods, freights, expenses of delivery
| wagons, &c, which the farmer, as q con-
sumner, helps TO pay. Add these to the 80
cents already gone by reason of the bank
ing process, and we NAV safely conclude
that the farmer has not much over % cts.
left on his bushel of wheat. Is IL any
| wonder that many farmers dress in rags
and 80 without sugar, teas and coffee, for
months together?
We now wish to say a few words as to
| the sultabfeneSS of Col. z. B, Plumb &c
represent the farmers movement in the
u. 5. Senate-the Col. having solicited
the support of one or both of our repre-.
| seDtatlyes in the Legislature-and ia
charge home some things against the Rep.
resentatiye NJ. j. frey of the Gsth dis.
trict Cor being in favor of him Plumb
| for that position, and ia doin z SO we de.
sire TO say that we are not actuated by
any uhkin1 or indicative feelings
towards either of these gentlemen. We
can say. Cesar is our friend, but truth
more"
We hold, then, that from the facts in the
case, Col. Plumb cannot represent the
farmers movement, and that Mr.. frey
betrays the trust we placed in him when
be supports Col. Plumb as a representa-.
tive of the reform movement. With us
Col: Plumb has been editor, lawyer and
banker. AS former editor of THE NEWS
we can say nothing now, as it would take
too much space and time. AS a lawyer,
he may be set down as a E'smart" one, and
yet his "record' as a lawyer is by no
means satisfactory to many When he
was County Attorney for this (Lyon
county, at salary of 81 900 a year, he
was also attorney for railroad (doing
business with the county at a salary iii
was said) of $4,000 year. How much
the railroad paid him we have no mean
of knowing, but that he was employed by
both at one and the same time, is beyond
a doubt, and in this respect he gave very
poor satisfaction to the county. So poor
indeed, that when he offered himself fol
re- election the people rebuked him sharp
ly by eieeting less competent man, as a
lawyer, to take his place. Again: AS
one of the original members of the Empo.
ria town company, he received. we sup
pose, his share of the town lots, some OF
all of which he doubtless sold and pock.
eted the money therefor. After that he
was engaged as attorney to prove thai
the title to one-hall OF said town lots was
| faulty.
At present Col. Plumb is a banker
having left good paying law practice to
| become president of one of the oldest and
most fiourishing banks in southwestern
Kansas, and for ought any one knows,
will continue to be so as long as he lives
His interests and business relations are
fully identified in and with the banking
business, while some of his most init
mate friends are engaged in the same bus.
iness.
We don't suppose that Col. Plumb
ever raised a bushel of corn in Kansas in
his life. Nor is he identified with the
laborlng classes in anyway He has new.
er taken any part whatever in the farm
ers' movement, belongs to no agricultural
society or grange. True, Col. Plumb is
the nominal head of the so-oalled "Lyon
| Co. Agricultural and Mechanical Associ-
ation." But what of that? That con-
Germ is owned almost exclusively by the
business men of Emporia. 1t is city in
| sttution owned and run in the inter ests
OF the city. A couple of lawyers Tor
| bankers) one druggist, a hardware mer.
chant, miller and a few more of the
same ilk, initiated the concern and elect
ed themselves directors. It is still run
about the same, and by pretty much the
| same kind of men--men who are neither
| agrfculturists or mechanics. How then
can 1t properly be called an agricultural
| association.
These facts must make it PLAIN to every
unprejudiced mind that Col. Plumb Is
not, connot be, a suitable man to repre-
sent the farmers movement, either in OF
out of Congress, and credulous indeed
must be the man who can hold to such q
delusion, and yet we are credibly in
formed that Mr.. j. NJ. frey (of canal
fancy from being adti-Plumb anti-mon-
opoly, and anti-bauk (our present sys-
tenn before his election, has gone over
| since his election, to the support of man
who belongs to the biggest, the strongest
| and the most to be feared of all the mono
poles. When Mr.. frey was nominated
by the farmers convention last fall, it was
generally understood that he was strong
anti-monopoly. Had he been otherwise
we feel surein saying that he would have
| been overwhelmingly defeated. Mr.. Fir
cry should have been pledged by the con.
veHtion that nominated, but in as much
as he was one of the very ring-leaders in
the reform movement and was henored
above his fellows, by being made presid-
ing ofhcer OF the first farmers convention
ever organized in the county, and the
convention having every confidence IN the
man, 1t was thought, we suppose, to be
superhuous. This was q mistake, how
| ever, which cannot now be Pectfled. In
the future it should not be forgotten. But
Mr. kirey tells US that Col. Plumb is all
right on the bank question. We are Eor.
~ 70 have it to say. but we do not believe
| him. We judge man more by his
actions than by his words, and Plumb's
actions all point the other way. Mr., Fir
| ey might as well tell US that the best Way
to correct any abuse is to appoint those
committed to its continuance 10 the con.
troll OF it; that Volmer and 10. Henry
would be suitable persons to make laws
for temperance people. 1t scenes to us
that Mr.. frey has been badly del ded;
at any rate, the most OF our confidence