The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1877-05-02
Wednesday. May q. ls77.
How Banks Of Issue Rob the People.


article, the tradesman who borrowed OF
my supposed bank 81 300 to start business
Let me finish the story OF my credulous
hero who this unsuspecting dupe OF the
false theory of making money plenty oy
the issue of promises to pay coin Tor It's
notes. by his industry and skill had manu-,
featured 81, 900 worth OF implements and
received his pay in bank notes on the same
bank to which he had paid the extra $50
of interest 20 start his trade, above what
the coin system would have cost him
These bank notes he laid by to recruit his
stock for the next year. In fact, he
apparently had been so successful 10 bust
ness that he told his wife, who had worked
like slave, that he would buy her the
silk dress and other 6xings, when he went
to the city to purchase stock. Now for
the result. He goes to the city, calls on
the iron-monger, selects bis stock, tells
him to make out the bill and he will cash
it, as he has been so fortunate as not to
need credit. The clerk presents his bill,
footing 1910. "All right" says my trades
man. He takes out his wallet, counts out
ten one hundred bank bills, aud asks for
the change. hoping, no doubt, to purchase
the silk dress for the good wife. The
clerk looks over the notes and says: MY
good friend this bank has stopped pay
ment, and, in fact, business men generally
think that it will not be able to pay over
25 cents on the dollar of its notes. This
unfortunate victim of base and fraudulent
system of wholesale swindling goes home
without his iron, or the silk dress for his
wife, sadder and poorer if not wiser
man. 1t is said that the banks, when they
collect their loans in addition to the coin
in their vaults, can pay all their liabilities;
so thought my hero, who was determined
not to be cheated out of his honest earn
ings, He next goes to the bank, presents
his 81 900 Of its notes, aud demands the
coin-the so called basis" The cashier
blandly informs him that the bank has
suspended specie payments, and that it is
impossible for it to redeem its notes; but
that the directors have held a meeting
and feel assured that, in short time, it
will be able to pay rs cents on the dollar.
The dialogue continues:
Tradesman-"If you have done bust.
ness as your charter enjoins, you have OIL
hand 100000 in coin, and $1,000 viii
redeem these notes, which you certainly
will not refuse to pay to poor laborer."
C.-"That would be unfair, we mus
pay pro rata to those who hold our notes. >
THAT seems to be fair play; but die
you not loan these no ,es, which you nov
refuse to pay, at ten per cent interest; anC
is not that receiving interest on your bank
debts2"
C.-"Certalnly we received interest, AnC
that in advance; and, as you say, it seem
like receiving interest on our debts
The bank has now 100000 due from
those to whom the notes were loaned"
T.-''When theibank collects its debts i
can certainly, with the:coin in its vaults
redeem its notes"
Chat will depend on contingencies
the amount in circulation. and the fac
whether it's debtors pay the bank in COLI
or in its deprecated notes, which the
now buy at twenty-five cents on the DO
lar,
T.-"But if you have loaned $4,000
and received the pay, you can, with tina
SUD and the 100000 in CON- (which
$500, 000,) redeem your notes at par. an
save those who hold them from ruin"
C.-The 100000, of which you spea
as lent and paid, has. by dividend mad
by the directors been paid to stakeholder
and no longer belongs to assets of til
that only $4,000 of the capital of 500, 0(
was paid by the stockholders"
T.-'Then take it for granted that
have lost $3.50 by taking your bank note
even if can sell them for twenty-fi'
cents on the dollar"
CT think that is the best thing "
can do"
T,-"When l signed the petition
charter this bank some of my friend
whom called old fogies, warned me
the danger of dealing with 'cOntfden
men, but | shouted Murray for plenty
money. Experience is a dear school b
fools will learn in no other"
When Gen, jackson vetoed the Unit,
States bank in 1882, he had no idea th
this monster of iniquity would be succee
ed in forty years by over two thousar
banks OF the same corrupt type. In
veto he said: The notifications of {
existing charter are not such, in my vie
as to make it consistent with the RICH
Of the states or the liberties of the Poop
Nor is our government TO be maintaine
or our union preserved, by invasions Of t
rights of the several states. In thus
tempting to make the federal governme
strong, we weaken it. It's true streng
consists in leaving individuals and state
as much as possible, to themselves
making itself felt, not in its power, but
its beue6cence-uot in its control, but
its professionalism binding the stat
more closely to the center. but by leavi
each state to move unobstructed in
orbit. Experience should teach us W
dom. Most of the difficulties our cover
ment now encounters, and most of t
dangers which impend over our uni
have sprung from an abandonment of t
legitimate objects of government
federal legislation, and the adoption
such principles as are contained in tt
act.
Thomas Jefferson, in letter to NJ
Taylor, said THE banking system
have both equally and ever reprobate
contemplate it as blot left on our i
stitutions which, if not corrected, will el
in their destruction, which is already
by gamblers in corruption, and is sweepi
away in its progress the fortunes al
morals of our people. | sincerely b
lieve, with you, that banking and fun
ing establishments are more dangerous
liberty than standing armies" But, ala
the corrupt petitions of tot day are t
tools of the money power. They ha
tabooed the principles of Jefferson, JAG
son and their compeers; and introduce
the corrupt system of banking and fund.-
which these patriots denounced as leg
lized system of robbery. GREENBACK