The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1874-01-10


| thav racaive in return, which they loan 70
| tba neonle. And in lieu OF all taxes o.,
| their circulation and the bonds deposi'e"
~ secure its redemption, the banks are re
,,u,rsd IN nav but one half Of one per cent
semi-annnaliy. in lawful money, on the az
craze amount Of their circulation out
standing. -
All private bankers and brokers pay the
same license and tax or DUTY on deposits
as the national banks, that the interest,"
On the bonds il. with the exception OF the
one per cent. tax on their circulation, just
40 much of a bonus or subsidy pad 10
these banks. for which the government or
n,,oplc receive no consideration whatever.
The currency issued through the banks
derives all its security and credit from the
government endorsement, and Is IN no re-
sne,t better than the legal tenders issued
directly to the people, and every dollar of
the Subsidy paid to the banks would be
saved 70 the tax payers by the substitu-
ton of legal tenders for the bank currency.
Sd. The Secretary 10 authorized to APP
portion the circulation Of the banking as
sociations among the States and Terrific
ries, having due regard to the then exist
ing banking capital, resources and bust
ness Of such States aud Territories. The
effect Of this provision was, at the time Of
the passage of the law, and is now, to give
a few Of the money centres in the East the
control Of the currency, they having the
MAJOR part Of the banking capital. This,
beyond all doubt, was the intention of the
trainers Of the law, for their constituents
not only insisted upon strict compliance
with tlls provsionin the first instance butiu
many cases appropriated double the
amount of the circulation 10 which they
were entitled, and now obstinately refuse
"a surrender 1t to other localities having
less than their share.
The enormous profits arising from the
issuing Of the currency, with the powerful
money combinations the organization Of
which the system favored, enabled tile
bankers t. eNtort from the business com
munity eNorbitant rates Of interest, which
caused steady and rapidly increasing
flow If the currency to these money CEN
tres, and led to the gigantic gold and
stock gambling operations and currency
lcck-ups, resulting IN the prostration of our
agricultural. manufacturing and other pro
ductive industries and the arrangement
of legitimate commerce now being expe
rirnced throughout the whole country
Not content with the unwaranted pow
crs already secured, the bankers and usu-
rcrs come now to demand the withdrawal
Of the legal tenders from circulation. to
make room for a much larger amount Of
their currency, or, that the currency shall
be contracted under the delusive plea of a
return e the specie pay humbug. The
ol,,,tinn Of aifhar ~ thosa ,,,I;o;o, LII
render the power of the Lankers and usur-
ers over the government and people abso-
Lutte. The effect Of contracting the cur
reHcy will be TO reduce the price Of labor
and its productions below even the present
starvation prices, while the bankers and
usurers will retain their control of the cir
culating medium and maintain the rate of
interest on capital as high as it now is if
they do not advance it still higher. This
will still further augment the power Of
money over labor aud property, for it will
take more of the labor as well as the prop
erty ot the debtor class to discharge their
monied obligations. Ii will also increase
the pay of all officers, State and national.
for their pay will buy more of the pro-
ducts 81 labor at the reduced prices.
On the other hand, if the policy Of free
banking is adopted, and all holders Of gov
eminent bonds are allowed to engage in
the business Of issuing currency under the
present system, and the legal tenders be
withdrawn from circu alton, which is what
the advocates of this policy desre to &C
complish, the volume Of the currency will
soon be increased to ten if not to twelve
hundred millions Of dollars (which is prob
ably not more than the country needs), for
when the profits arising from issuing and
controlling the currency 60 into the vaults
~ the banks or the usurers, the cry of in
tatun will cease. The arguments Of the
banks. il established on the specie basis
fallacy can only issue limited amount Of
currency beyond the amount of
specie IN their vaults is purely
mythical. for they can and viii
control the financial legislation Of the
nation and thus secure the privilege Of To-
eating their offices Of issue in Alaska, or
some other inaccessible locality. 50 that
practically there will he no such thing as
specie redemption, and they will be enabled
to fitch from the tax payers at least five
per cent. oil the whole amount Of circula-
ton, amounting to from fifty to sixty mil
lion dollars annually, to which must be adj
ded their profits arising from the monopo-
~ Of the currency. which can only be es-
tImated by hundreds Of millions Of dollars
yearly
tTO RE CONTINUED