The Hillsdale standard. [volume] (Hillsdale, Mich.) 1851-1909, 1878-06-11
NUMBER 1896
In 1912 began the oryauized grange

In 1912 began the Organized grange
movement against railroads aud mid
dlemen. This checked further opera.
tions aud so alarmed capitalists that
they began 10 withdraw their money:
the railroads defaulted on their inter
est and capital at once grew alarmed.
with railroad securities nnd they failed.
other large banking firms followed and
the panic was upon us The speaker
showed how the grange movement
against railroads aud middleinen affect
ed the manufacture 4 iron, agricultural
implements and other industries, The
question how is
WHAT rs To BE DONE?
In the first plsce, get over the absurd
notion that the Nation must support
The people The government is to pro-
tect the lives and property of the peo-
pie. IL cannot support them. IL must
itself be supported by the people.
Let us stop gambling and go to
work. The speaker had been dead
broke" several times, and he found the
best way was TO take the first Job he
could get; then he would stand q
chance to get better one, much bet
ter chance than il he had not taken the
first one. Wo all must patiently and
tollsomely work our way up.
But there is great injustice. The
poor are taxed and the bondholder is
not. The speaker showed that this is
not so. That IL the bonds were not ex-
empt from taxation that the govern
ment instead Of paying now from to
per cent would have to pay much
higher interest aud that in communi-
ties hostile to tho government obliga-
tions, the bonds would be so heavily
taxed that they would be sold, demand
for bonds would cease and the govern
ment he put 10 great expense and en-
barrassment. In all governments its
evidence of indebtedness have been ex-
empt 1t is so provided by our consti-
tuition and has been repeatedly declar-
ed as law by the supreme court. Neith-
er can greenbacks be taxed.
IL has been said that the loss or de-
struction of bills is clear gain to the
banks but the law provides that they can
not get all their bonds back unless they
surrender all of their bills. No bill
holder can lose dollar by National
banks. The banks deposit 800 in
boRds for every 800 of bills issued to
them and being obliged to deposit 8
per cent and hold 10 per cent. in notes
as redemption fund can in fact not have
out over about 20 per cent. He showed
that National banks were necessary at
the time they we're established to keep
mp the nations cridit. to make a mark
ct for bonds, ETC. Now, as TO whether
NATIONAL BANKS GET DOUBLE INTEREST.
The speaker reckoned on the basis of
6 per cent. bonds. We amend his
figures and give details as follows: The
banks generally hold per cent. bonds
and per cent. of los the value of the
bonds is 1921 gold or about per
cent in currency. Ten per cent. from
borrowers on seven-tenths of the full
value of bonds Is exactly equivalent to
per cent. of their face value making
in al less than II per cent. from which
must be deducted taxes on STOCK circu-
lation Il per cent? property besides
salaries and all other expenses leaving
so small a margin Of profit that national
banks are now quite generally retiring
their circnlatiou.
The speaker proved hy statistics hat
he substitution of greeloacks for Ma
'ional bank notes paid instead of a
gain be loss. The extra amount of
coin for redemption PURPOSES would
r-quire the sale OF more bonds. The
1 Per cent tax on circulation aud vari-
on, other receipts would be lost, an
ouuting 90 more than IS now paid as in
tlrtst 90 National banks.