The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1882-06-22
The Only Remedy.
Extract from P.-ter Cooper's Recent Letter i
National view.1

ever did and ever shall advocate a
purely National currency as long as l
live, as the only remedy against period
ic stagnation, caused by special legisla-
ton, suggested and voted by banking
representatives and spectators in the
seats of our Congress, forbidden by law,
as may be realized by what follows:
The wise men, who achieved the in
dependence, drafted the Constitution,
and established our Government, well
knew that it was unsafe to trust the law
making to bankers. usurers or any one
Interested in such business. They knew
it was morally impossible for persons in
terested in money-lending not to at
tempt to legislate in their own favor and
against the good of the people.
On page 20 of the Journal of the
United States Senate, first session of
the Third Congress, commenced at
Philadelphia, Pa, December 2, 1898,
can be found the following resolution,
offered on the 23d of December the same
year, and passed by the United States
Senate with but two dissenting votes,
and signed by George Washington,
President, and John Adams, Vice-Pres-
ident:
"Any person, holding any office or
any stock in any institution in the ma
ture of bank for issuing or discount
ing bills or notes payable to bearer or
order, cannot be amember of the House
whilst he holds such Office or stock"
Yet, a late Congress was composed of
one hundred and twenty bankers, nine
ty-nine lawyers, fourteen merchants,
thirteen manufacturers, seven doctors,
four mechanics, and not a single farmer
or day laborer. This is agreeable to
statement, made by Moses w. Field M. C.
think this law was invoked to pre-
vent A. L. Stewart, the largest importer
of foreign goods, from becoming Secre-
tary of the Treasury.
Why should it not be enforced now to
oust spectators from our Congress,
where they are making laws in their
own favor and against the interest of
the peoplep
AS further evidence of the danger
that must result to the American people
by our present system of National
Banks, authorized as they are to issue
paper money, promising" to pay gold
and silver on demand, it should be re-
membered that no ten years have passed
in the history of our country without
failure of our banks TO pay coin. This
danger was made to appear in all its
frightful proportions by the testimony
of MIR. S. b. Chittenden, Member of
Congress from Brooklyn, given before
Congressional Committee in 1874, ap-
pointed to inquire into the National
Banking system. Mr.. Chittenden' s
testimony concerning the National Banks
was as follows:
Il believe that of 1000 National
Banks there are not two-thirds in num-
ber sound today mean not two
thirds in number. In the vast propoE-
ton of them the capital is very small.
81 know, for instance, how one Ma
tional Bank was established, and pre-
sumo there were hundreds established in
the same way.
Il say l know National Bank of
100000 capital $50 represented),
| where broker in New York purchased
| 100000 in Government bonds and paid
| for them.
| 1.-THE owners or organizers of the bank
| furnished the margin between the nine
ty per cent in currency, which they
were allowed to draw ON deposit bonds,
and the cost of the bonds, and that mar
| gin was all the capital that was ever put
into the bank. (And that $40, 900 didn' t
| go to the bank-it went to pay for the
bonds.)
1.-The broker sent the bonds to Wash
ington to get his 100000, or ninety per
cent. on the dollar in National-Bank
notes, already having the margin from
the gentleman who established the bank.
while he reimbursed himself with the
100000 in National Bank notes drawn
on the bonds.
1.-The bank was one of the first to sus-
pend in the crisis of 1873, but resumed
again shortly, and is going on as before.
1t has banking house, which cost over
$50. 0.000."
There you have the facts in a nut
shell; and MIR. Chittenden, never having
manifested the first symptoms of Green.
backisE, but being well-known bitter
opponent of the ''people's money" his
testimony should be accepted as conclu.
| sive.
1t will be noticed particularly thai
there was not dollar in the bank oi
which Mr. Chittenden testifies, and thai
in a vast proportion of the banks the
capital is very small.
1t would be safe to strike an average
and place the bank capital at ten PEI
cent. cash, and ninety per cent conf
dence.
The testimony of Mr.. Chittenden will
show that our present system of Nationa
Banks is moneyed power, that is more
able to infiict on the American people
the greatest possible amount of suffer
ing. like that which is now passing the
real estate of our country rapidly out o
the hands of the many into the posses
! sion of the few, which will soon product
here state of things like that which ha.
| caused murder and bloodshed in Irelant
and is now spreading to the Isle of Sky,
in Scotland.
The moneyed interests of our countr,
have taken the place of the enslavint
power that brought ON the late destruc
tive war, and it needs but little per
ception to see and judgment to know
that this potent power in our land, aidet
by capitalists in Europe, have introduces
, and carried out measures that have lit
orally enslsved the millions of inhab
tants who have nothing to sell but thei
own labor. They are now left at tn
mercy of their employers who get thei
labor for the smallest consideration fo
which it can be obtained; then by tn
power that has been created by ou
, Government, enabling certain classes G
: !, men, banks and corporations withou
souls, to expand and contract the circu
lating medium in use throughout tn
length and breadth Of our country t
i such a degree as periodically, once i
i some seven or ten years. to bring abou
panic, causing such pressure and ger
/ eral ruin as to throw all of these poe
people out of employment and leav
= | them vrOrse off than were tho slavas 6
4 the South. many of whom had goo
masters to take care of them. All th
!. devastation to the millions has bee
!. wrought by the influence of banks an
I moneyed corporations created by specia
: partial and unconstitutional class legi
lation.
A Our rulers made the same mistak