Western sentinel. [volume] (Winston [i.e. Winston-Salem], N.C.) 1856-1886, 1878-08-22
NO. 80.

no prejudice. ! wish to reason fairly
when say that, in view of the un-
doubted fact that during the whole
period of the unlimited sway of the
Republican party, the legislation Of
Congress steadily favored the monied
interests and thereby greatly added
to the bufthens of the people that the
purchasing power of money has i'm
mensely increased while the exchange
able or purchasing power of everys
thing else has remained. stationary or
has diminished and in view of the
further fact that the national bank
system confers special privileges upon
the banks that no other institutions
and no individuals enjoy that it COM
biEcs more than two thotsand institu-
tions now, and, If perpetuated, may
combine thousands more; In cot1t-
mon purpose and with common in
terest to maintain their power and
prolong their privileges; that these
institutions are scattered all over tile
Republic and, acting openly or in Sc
cret, are able to influence Legislatures,
Congresses. and thousands of voters;
it is not injustice, but, oE the contfAA
ry, it is the expression of a wise anX-
iety TO suggest that such a system is
fraught with danger to the prosperity
of the people and to the purity of theft
government. If, in the time of An
drew jackson, the existence of a ma
tional bank with capital of only
thirty-five millions of dollars, and d
| few branches here and there, was con-
sidered dangerou to Tie welfare atd
the Institutions of the country, what
shall we say of widespread combi-
nation of two thousand national banks
now welding nearly five hundred
millions oe capital and destined, if
perpetuated; TO vastly multiply In
number, and to control thousands of
millions?
3. A third objection to the Nation
al Bank circulation is, that it is
special privilege that puts many mil
lions of dollars annually into the
pockets of the shareholders and takes
many millions annually out of tho
people.
The general fule Is that d person
pays interest upon what lie owes; ht1t
in the case of a bank note; this rule is
reversed. The note is debt due by
the bank bht instead Of paying inter
est Upon it, the bank is Authorized to
loan it as money, and take interest up
op the lean. It thus enjoys a privi.
lege that no one else enjoys. 1t draws
interest upon its own indebtedness,
and this privilege of the National
Banks brings them an annual income
of probably twenty millions of dol.
lars: Their aggregate circulation is,
in round numbers, three hundred and
twenty-five millions. / think it may
be reasonably assumed that three
hundred millions Of these notes are
loaned at an average rate OF interest
of at least seven per cent. If so, the
ani1tal interest they receive from the
loan, not of money, not of capital,
but of their own Indebtedness, is
twenty one million dollars. And this
, sum is taken out of the annual pro-
duct of the country, btfore that pro-
duct is divided between labor and
capital. The general rule is, that the
product of human industry is ulti-
mately divided between labor ard
capital but when bank note circu-
: !ation is used the banks first step in, ,
and, by virtue of their special privi-
r lege; take large slice in the shape OF
! interest upon their own Indebtedness.
:, In the case of our national banks,
this slice; as we have seen, amounts
to twenty nine millions every year.
Now, if there can be no sound paper
c currency bit bank notes, then there
is nothing left for us but to bear this
2 burtlleh Or try to reduce the amount
: of the exaction. But if tile greenback
II is as good as the bank note, and no.
o body denies that it is, why should il
;, not be substituted for the bank note.
and an end pitt to the eXaction?
. And, consider further, that for ev-
I cry greenback it has issued the gov.
ernnent has received value. The
= greenback has paid for services rem
Il dered, or materials furnished, or il
c has discharged a portion of the inter
IS est bearing public debt. There il
If thus saving to the government, Of
If to the people, of an amount equal tt
l. the interest upon the outstanding
E. greenback circulation; for, had th'
le greenback not been issued, tue gov
A. ernment would have had to raise tn,
A. money, by loan or taxation, 10 NEE
Of its expenditures. If it raised it b,
in loan, it would, of course, have to pa,
IN interest upon the loan. 1t it Is raiset
he by taxation, the taxpayers lose th
IS interest their money would have earn
ne ed had they not been compelled t
50 give it to the government. a
at The greenbacks now outstandin
ly amount to S346, ,681 ,016. Computin
c. interest upon this sum at the lowe:
y rate AT which the government CO
re borrow money. A per cent. and "
on have an annual saving to the pcopl
IN resulting from the use of the gree
lc- back, of $13, ,867,24O. But if gree
"a backs were substituted for the 1926
'es 600, 10000 of national bank notes no
in outstanding, there would be fnrth
at saving to the people of per cent q
iat nually on that sum. namely. S12 ,SSS
0O0-making total annual saving
pa the use of the greenback of S26,74