The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1879-03-20

Aside from politics, how do the
banks exercise dangerous power over
society?
They alone exercise the power to
contract and expand the volume of
money. By this means they can low
er or raise the price of every spices of
property and products whenever they
please. They can depress the value
of farmers homes, and increase the
value of the mortgages upon them.
They can deprive labor of employ
ment, and set aside the will of the
people, as expressed in the laws of
congress, all of which they are success
fully doing. They can make money
scarce and prices low, SO as to bid in
mortgaged farms for a song, then make
money plenty and prices high so as to
sell out at an extravagant figure.
Is it safe for people to trust such an
enormous and dangerous powers to a
corporate monopoly?
1t is not; still the banks and their
lackeys claim that the people are in
competent to determine how much
money the business of the country de-
mands, and congress is no more capa-
: BILE of fjudging than the people-that
banks, like kings, possess "divins
rights" the one to rule politically,
, the other to dictate financially.
Are bank notes any safer or better
than greenbacks?
All the money value, or safety, the
3 bank notes possess are furnished by
the government. A bank may fail and
t every stockholder become insolvent
g still the notes are current, becaure they
+ are based on the Government credit
and the government willredeem them
e Are bank notes cheaper than green
backs?
e The greenbacks cost nothing, whil
e the bank notes cost the governmen
y over s14, 900 per year. The gov
Is ernment not only loans the bank bill
II to the bankers, but pays them a rat
20 of interest on their capital stock va
d rying from A to six per cent. whic
makes an average of five per cent.
ot What is the difference between th
IL cost of bank currency and greenbacks
l. The bank note is put in ,circulatio
ar at cost OF 5 per cent, and the greer
is back at no cost whatever. 1t must
of borne in mind that the only tax pal
I'd by the banks to the government i
their circulation is l per cent.
We The comptroller reports that Il
n, banks had on deposit in the treasul
x November 1, 1878, bonds amountir
lis to $S49, ,40S, 900 and the total circul,
a ton was 1922, 46O,715.
The interest on these bonds paid to the
nadc, ,a escn year aa sant ao1
Annual cost of bank circulation ......s14,2 ,245, 4
Sufficient to pay the back pensio
a9y every two years.
ch Chow much have the banks ma
'as out Of the government since they we
w. into operation?
uuy Interest on the average amount
- ~ bonds deposited by the banks since t
oe passage of the act is SIG, 800, annual
m The total amount paid by the government to (
ill., On
,ds stupendous sum 1921, ,000, 600
iu' Deduct tax paid by banks........ 80. IT'S, ,ss7
Ids Total net receipts from the 224 lss
m- Then the banks have been ps
icy nearly two hundred million dollars
pie bonus to accept their powers a
iq- privileges. How otherwise do tn
em- make money?
OF The banks after making this So;
600, 900 as free loan from the e
ernment, put it out at interest amo
the farmers and business men at from
of 20 per cent. Or in other words
hat people, through their agents, the g
hat ernment, gave the banks a free loan
1922, 100000 of money, pays tn
nth s14, 900, ,0O0a year for taking it, Il
ives borrows it back from them at fror
liq- to 20 per cent, secured by mortga
nm their farms. factories and houses.
600 How much have they made
.oe this double transaction
eie- If they have loaned their circulat
FER at 8 per cent. (Which is a low e
of mate, it amounts to an aggregat
,me 1886, 100000. Add to this the amo
;n- paid them by the treasury and
- have q total net gain of $527, ,224,
9 IN and yet they denounce as extortion
tier l per cent. tax they have to pay
Sov- their circulation.
As. When did congress get its autl
49,, ity to delegate this enormous SOY
~ eign power to corporations?
the It never had such authority.
out has been usnrped, but was never C
ferred. The entire national bank
act and machinery are unoonstituti
al, usurpations of power, never
thorized by the people to be ez
cised by any but their own repre'
,wer tatives.
Latter From KanaaQ Cifv