The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1881-02-10
How Princes and Paupers Are Created
BY Csury.

How Princes and Paupers Are Created
by Usury.
Do away with banking businessi
Make the business of money -loaning un-
profitable! While / am willing to con-
cede that banking business is perfectly
legitimate, do not hesitate to solemnly
assert that / consider it the most perni-
cious institution in this country to-day.
1t is an institution that lives and thrives
upon interest-money, derived from
money-loaning. Let us see how the
system works.
Let us suppose that five of US are
upon an island, where we form a little
community by ourselves. Suppose
have just 800 in money (all there is),
and the other four own 81, 600 worth of
property each-S4, 900 worth in all. 1
have one-fortieth as much as the other
four. (According to the census in 1870
there was about $50, 900, 600. 600 worth
of property. and about $3.50, 900, 900 of
money-one dollar in money to forty
dollars worth of property-so the ratio
of money to property is the same in the
United States as upon the supposed
island.) / go into the banking business
and loan out &25 to each one of you at
the rate of ten per cent. for ten years,
and either take mortgages upon your
property, or simply notes that l can put
into judgment in case of failure to pay.
In ten years get all the money back
in the form of interest-money. It is all
the money there is in the community.
l lock it up, in other words have got
"a corner on it. The principal now
becomes due. and I call upon you for
payment. Ho0 are you going to pay
me? You may offer me horses, or cat
tie, or grain at one-tenth its value, but
| say. "No, don't want any of your
horses. or cattle or grain; / aoa,at the
money" What is the resultp Why,
foreclose the mortgages, put the notes
in judgment, and confiscate all the
property in the community. By this
simple process of money-loaning be-
come q Prince, and the rest become
paupers.
Let us see how the case actually
stands to-day. This whole country is
nothing but vast island; there is Just
so much money, and Just so much prop
erty. The banks are full of money
Sherman says "the money centers are
glutted with it." 1t is locked up in the
banks, which means the money-loaners
have "corner" on it. What is the
resultp Everywhere around us we see
mortgage sales and execution sales;
everywhere around Us we see the mor-
ey-loaners becoming princes, and the
producers becoming peupers. Under
our present monetary system these
holders of one-fortieth of the wealth of
the country can grasp their money in
their hands and say to commerce, agri-
culture, manufacture and labor, pay us
tribute or cease your busy work, pay us
tribute or sit down in poverty, hunger
and rags. In short, it is a species of le-
galized blactmaI levied upon produc-
tive labor. 1t must indeed have been
Divine wisdom shat forbade the Jews
taking ustsyy (what we call interest
the use OF money for money! from each
other; Divine wisdom and justice must
have known that usury (interest) meant
,oro1,g, meant erto,1ion, meant robbery !
insist. then, that civilization that
has made the progress in the arts, the
sciences, music, literature, education,
agriculture and machinery, that we see
to-day, ought to invent some kind of a
monetary system which will render
such state of affairs i'm possible!
The money that is needed in the
channels of commerce to-day is locked
| up in the banks. it belongs TO the
bankers, and they have a perfect right
to do with it what Lhey see fit; no mat
ter whether they lock it up through
selfish motives or through distrust of
commercial credit. the result to the
community is equally disastrous. But
l hold this, Eve can. in any legitimate
| manner. take the circulating medium
out OF the banks and keep it out, and
turn it intD the channels of commerce,
where. ID belongs and where it is needed,
we opght to do it. 1t seem to me to be
q perfectly simple process. Banking
business depends upon interest money.
Do away with interest money then, and
mako the penalty for usury forfeiture
| OF both principal and interest. In that
way make money -loaning SO unprofita-
ble that it would drive thu capital and
enterprises that are engaged In banking
business into industrial and commercial
fields. Then, and not till then, do !
believe we will establish permanent
prosperity. II there were no banks
there would be no money panics; every
man would have his money in his own
possession, where he could put his
hands on 1t when he wanted it. You
will observe that those countries that
have the fewest banks have the fewest
panics.--.S. r. Norton, Of the Chicago
Sentinel: