The Somerset press. [volume] (Somerset, Ohio) 1873-1977, 1882-01-19

bonds were placed on the market.
II England and Germany are disposed to 4
pass laws permitting bankers, bond-holders
and money-lender- to extort money unjustiy /
from the business men and working classes, /
by making all debts payable in gold coin. does I
1t follow that the United States should do the
samel When you talk about a standard of
value you should remember that since 1862
gold, silver and legal-teuder notes have all
been standards of value in this country ex-
cept for the period between 1873 and 1873.
when silver was denonetized in the interest Of
the bond-holders and money-lenders, and the
Government was making every effort possible
to destroy the legal-tender notes.
During these years the Nat on was in a d1l-
uge OF panies and bankruptcies, and relief did
not come until silver was remonetiZed and the
destruction of Greenbacks was stopped
Do you wish to see return Of such times!
III so, let your suggestions in regard to the
currency be carried out and you will soon see a
return.
The removal of the tax on bank deposits is
also n question of doubtful value. According
TO the late report OF the Comptroller OF the
Currency the aggregate deposits are about
81 ,0S3, 10000 in the National Banks. This
money belongs to the people, and the banks
get the use Of most of it for nothing, and they
have the interest derived from loaning it back
to the people. Their loans and discounts
amount TO 81 469 022, 303. Their capital stock
Is only about s463, sci 900 and nearly s4O0000,-
900 Of this is invested in United States bonds
that are exempt from taxation.
They have given to them by the Govern
ment, without cost, S3d2, 900 of bank notes,
which they loan as money. They pay no tax
on tn ir bonds, they get their deposits and
notes for nothing, and pay only the half of one
per cent. tax on the notes, and as much more
on their deposits. Although among the rich
est corporations in the Nation and taxed the
least, and they get money for nothing, the
bankers are about the only parties who com
plain Of excessive taxation.
There is another suggestion or two in your
ID
exFedent to L.ye adopted, and that is, to
modify the tariff, reduce the revenues and
defer the payment of the public debt.
As you very correctly say: The business Of
the country 80 thrives as to endure the oner-
Gus taxation and yet grow in volume and in
profits and still Weld the Government sur
plus over its needs" If the country is thus
prosperous, and nobody complains of taxation
but the bankers. and there is so large sur
Plus as to = 'embarass the Government to dis
pose of il" why ask the next generation to
| pay the public debt? Why not apply every
dollar Of these surplus funds to pay the three
| and-a-half-per-cent bonds and in three years
have them all Ca celled, and have the money
| now invested In them put into business to en-
| ploy labor, where IL will bear its portion of
taxation and contribute further to the increas-
| ed and permanent prosperity of the country!
| | am aware that S242 100000 Of these three
and-a-half-pe bonds are held as security
| for bank circulation, and there is where the
principal source Of trouble arises; but If you
| had simply suggested to Congress to pass an
| act to provide for issuing legal-tender notes to
| take the place of any retired bank notes, you
| would not only have prevented any contrac-
| tion OF the paper currency, but greatly facil-
tated the rapid cancellation of the remainder
of the public debt, and settled all difficulties
| about the currency.
| When the three-and- -half-per-cent. bonds
are all paid, would it not have been wise
| suggestion to have been made to have Congress
provide for investing the surplus revenue suffi-
s.a M 70 off SOFT tp hal nf q ed
| SO that to all intents and purposes it would
| be all paid within the next few years!
The present revenues of the Government,
with judicious management, are sufficient to
practically cancel the entire public debt in
seven or eight years. II seems to me, from
i reading your report, that these financial
questions have not received as careful consid-
Grafton at your hands as they should have re-
ceiyed, and that you have looked at them from
the standpoint of the banker, the bond
holder, and the money-lender, and not from
that of the MASSES of the laboring people, who
create the wealth of the Nation and have its
debts to pay.
1 think Il would be sounder financial pol.
icyto reverse the legislation you have advised
Instead of Withdrawing the coin certificates
issue others Oh all the gold and silver coin and
bullion that is presented to be exchanged fol
them. and have those certificates redeemable
! in either gold or silver coin, or legal-tender
! notes.
Instead of stopping the coinage of silver dol
! Instead of Withdrawing the legal-tendel
J quality of the Greenbacks and issuing the pa
per currency for the banks only, retire al
. bank currency and issue an equal volume o1
legal-teuder notes to take its place.
, Instead of taking the tax Off the bank de
l posits, put more on their circulating notes
and tax them out OF existence.
Instead Of reducing the revenues so as tt
get rid of paying the bonds, let the revenues
, increase and pay the bonds of as soon as pos
: sible.
Instead of forcing the next generation t.
5 pay part Of the public debt, let it be all pal,
e by this generation, and as soon as the reve
G nucs of the Government will permit. Debt
r are bad legacy to leave to posterity.
4 Instead Of contracting the currency and ru
!. ining business men, and forcing laborers int
e idleness, let the volume gradually increase pc
q capita as the population and business in
: crease, and thus secure to our country cur
4 Tency asuniform in it's measuring power as tn
9 yard-stick or pound weight, and by this mean
. keep up the tide of prosperity that is no'
: spreading so benefcially over the country.
o Let the legislation he for the benefit of th
/ people who create the wealth of the Natior
u and not solely for those who absorb that wealt
,r BY monopolizing the currency. -....--,
W | see that Senator Sherman, who for fou
I years was in control Of the Treasury Depar
o ment, has submitted a bill to Congress to r,
y fund the three and-a-half-per into thre'
a percent. bonds, payable after five years TIL
20 sole object of this bill is to help the banks OF
T. of their present difficulty, and aid them I
st fasten the debt ON the people. They must no
er purchase four or four and-a-half- per-cer
ic bonds at premium orretire their circulation
X or new bonds must be provided for investmeI
ie to secure circulation. All through Mr.. She
mans administration of the Treasury Depar
G. ment he managed the finances of the Cover
,y ment, as much as possible, in the interests
s. the bankers, and now he has become a Senate
v, he is at work for them again. 4. .--gT In
IL From statements made both in your repo
to and in prev usreports of Mr.. Sherman of Il
N probable amount of surplus revenue, it is ev
as dent the s15-per-cent. bonds can be paid
er they cannot be paid thens Why not manae
a. the Treasury for once in the interest of Il
lie people, and not for bankers solely?
a My attention was called to the dangerot
IA IA power banks hold, and <le widespread ri
~ they can bring upon the country by infatiC
Ee and contraction, fifty years ago, through
~ knowledge of the mal-administration of Il
" Second United States Bank; that bank, v
AZ are told, paid one million five hundred thou
nt sand dollars for its charter. 1t had capt.
y Of $3S, 900, 600, with the privilege of issuir
~ four dollars OF currency to one dollar of car
oe tai. 1t was so recklessiy managed that, wi
M forty millionsloaned on its promises to pay col
~ ~ | IL only had three hundred thousand dollars
OF coin to pay its forty millions of debt, VIII,
this fact was discovered, the President of Il
'st bank had to leave the country to save his lii
en- Benton, in his Thirty Years. History of Co
~ gTess, declared that the managers of tn
I | p@lh .SAP SAuNu Foi0VO,OVO Ia " iioatiS oSiasS
and members OF Congress and editors to O
TO tain a re-charter. / trust that no such charg
'ts will ever be. brought against the present Co
'er gress for efforts to secure an extension of I
'rs present National Banks, institutions fully
'er dangerous as the old United States Bank. I
lr- National Banks have dangerous power plac
'm In their hands under the best of managers.
ler increasing the volume of their notes, loans a
bt. discounts, they can initiate prices, encoura
on speculation aud extravagant living and
Fly contracting their notes and curtailing d
ap- counts they can lower prices and bankru
In business men. Taking advantage of Il
es, power, they can sell while prices are high a
! buy when they are low, and by these mea
ing they can make fortunes for themselves a
It'll their friends.
rth BY having this power the prosperity and {
The versity Of the country is practically placed
l their hands. The power to issue currer
nal should be taken away from the Banks a
y placed in the hands Of Congress. When t
L. hnr