Mexico weekly ledger., 1879-01-30
CAPITALIZATION.
by Senator George G.. Vest.

Capitalization means force, as OPP
posed to popular will and must al
ways be associated with monarchy,
and hereditary rank. State govern
ment on the other hand, next to that
of the family will always be dear to
the American heart. The one is of
foreign, the other of domestic growth,
and whilst a great centralized govern
mens may dazzle for a time like the
sun with its garish light at MONDAY,
it is at last in the States, and by the
u~npretending, but steady light Of that
lamp which jefferson fixed as a bea-
con for posterity, that our liberties
must be preserved.
Capitalization means force, but il
does not always come in the shape of
standing armiesor the mailed hand of
the military despot. Look around
and you will see In every portion of
this vast country, with its varied pro-
ducts, and almost unlimited resour-
ces, the blighting influence of financial
Capitalization.
Pitiless as the ocean, unheeding as
the storm, cold and remorseless as
death, financial Capitalization is to-
day crushing out the life of the coun-
try. The dream of Alexander Hamil-
toms ambition when he led the old
Federalists has been realized in the
financial system of the Republican
party. Under this system New Eng
land and Wall Street own and control
the Union. The Republican leaders
determined to crystalize their power
and make it perpetual by erecting a
centralized financial despotisgn around
which should rally the Janizaries of
the National banks, and the Pretorian
cohorts of the bondholders. Every
interest has been subordinated to this
giant infamv.
The bonds Of the government in
terest bearing and non-taxable were
sold at ruinous prices, and more than
1900 National banks were permitted
to deposit these bonds with the gov
eminent, draw the accruing interest,
issue bank notes to an amount only
one-tenth less than the bonds depos-
tied, and then loan those notes to
the people for ten per cent. interest
payable in advance.
The same spirit of Capitalization
always looking to the same end, made
500 bonds payable principal and in
terest in coin when by their terms the
principal was payable in legal tender
notes. The same spirit afterwards
made those bonds convertible into
coin bonds, so as to destroy the iden-
tity OF the original issue. The same
spirit in order to make the bonds
more valuable demonetized silver.
and finally struck down with the x
Of resumption, the energies and in
dustries of the entire country.
Who demanded resumption? The
National banks and bondholders. 1t
has come by operation of law and ruin
has come with 1t. Business is para
Lied, values destroyed, the country
is full Of tramps, the cities full of
thieves whilst the people of the West
are staring bankruptcy squareIy in
the face. Honest money, shouts the
b~ondholder! The credit of the gov.
eminent must be preserved! Yes!
so says every honest man; but to
preserve the credit OF the government,
it is not necessary to ruin and bank
rupt the people. The credit of the
government and the welfare of the
people should go hand in hand.
The government is not the master
OF the people. 1t is their property,
their creature and its only use is to
subserve their interests. With the
Republican party the government has
an existence seperate and apart from
the people. The greenbacks, which
the people were compelled to take as
legal tenders were refused by the gov
eminent for import duties and interest
in the public debt. In other words in
accordance with the monarcheal sys-
TEN, based upon Capitalization, there
has been one money for the people,
another fer the government.
In 1874 the Democratic party de-
manded in its platform which 1 had
the honor of reporting from this stand,
that greenbaks should be made equal
to gold by making them receivable
for duties and interest on the public
debt. In the name of the people, we
demand now that the r~ninous system
Of the Republican party shall be re-
versed, and that instead of contrac-
ton and congestion, We shall have
expansion and healthy enterprise. Let
the volume of the currency be in
creased by making it receivable for
all debts public and private, the Ma
Aional bank system abolished snd in
stead of q bank circulation, let there
be legal tender notes issued directly
by the government.