The Lake Charles echo. [volume] (Lake Charles, Parish of Calcasieu, La.) 1876-1898, 1883-02-03
OUR sUGAHsTOwN AETTEm.
TAcTGs GTvEs THE READERS or rHg
ECHO HIS VIEWS ON THE BASKINe
SYSTEM or THE COUNTRY
SuoARTowE, Jan. IS, 1883.

and would add much to the business
of that hourishing town. But while
on this subject, let us inquire a little
into the workings Of the present bark
ing system, inaugurated BY the repub-
liean party and adopted as part ol
its financial policy, and see what il
costs the country to keep up such an
institution. These banks are founded
on the debt Of the nation, on tho
bonds which the government promises
to pay, bearing interest add paying
no taxes. The original debt was 10
the neighborhood of three billions Of
dollars and bore interest at the rate Of
Z per cent, but has been several times
refunded at q less rate of interest. A
SUM of money put atinterest at 5 per
cent. doubles itself in 20 years. The
average rate Of interest for 20 years
may safely be put down at per cent,
which makes the Amount Of interest
paid on the debt to the present time
equal or greater than the original
debt-between two and three billions
of dollars. What a drain on the pros
ductive industries of the nationl
The debt during all this time has
not been very materially lessened, not
withstanding the cry Of republican
papers that it is fast being reduced,
Instead Of IegisIatiug so that the sur
plus revenue may be applied on the
debt they refund in order to perpet-
uate and appropriate the surplus in
the treasury to a river and harbor im-
provemeut, or turn ii into the pockets
Of few individuals. The friends Of
the banking system do not intend
that the debt shall ever be paid off.
For when that is done down goes
their occupation. Not let US see how
these banks are established. For the
better understanding Of the subject
We will suppose y case. Suppose ten
men have a capital Of 81 100000 in
vested in real estate and improve
mcnts, on which they pay govern
ment, state and municipal taxes,
from the proceeds Of which they make
repairs, extend improvements, and
give employment TO large number Of
people. They sell that property, in
vest that 81 100000 in government
bonds, on which they pay no tax but
draw a semi-anHual interest of 31, 4,
5 or originally per cent, On this
they can live at case as drones upon
society, with nothing to do but draw
from Uncle Sam every six months
their $4,000 interest, But u better
field than this is open to them, They
to 90 into the banking bus
mess. They deposit in the treasury
their million dollars, as security, and
receive a charter for u First National
BHuk, and at the same time receive a
loan of 80 per cent. of the same, or
100000 Of bank currency at l per
cent, a rate scarcely sufficient to pay
for transatting the business. With
the $4,000 Of bank bills they pur-
chase bonds at par, deposit them and
start second bank, receiving another
yan of $4,000, with which they buy
bonds, deposit, aud start third bank,
issuing 80 per cent. Of that in nation
al bank bills, with which to buy other
bonds, and SO on until they establish
.wenty-nine first-class banks, when
hey get down to $4,000 which is the
owcst amount with which a bank can
be started With these banks in full
blast, they have bonds deposited to
the amount Of nine million three hun
lrcd and thirty-seven thousand nine
hundred and seyenty-eight dollars,
an annual interest Of five
aud sixty thousand two hun
ired and seyenty-eight dollars, besides
! cash capital Of forty six Thousand
hroe Eiuudrcd and iifty-six dollars to
speculate on, or buy votes, influence
OF any other purpose for
Yhich they please to use it. What a
scheme for favored few
o become Immensely rich at the ex
,onse of the toiling masses. For high |
aHiTs and excessive taxes must be
eyicd on the people to keep up the |
ystom. Eyevything We buy, every |
hing we use, everything we consume, |
las direct or indirect tax upon il, as |
he result Of the wonderful financial
,olicy Of the republican party. ibis
Giant monopoly is not limited to one
million dollars, but amounts to oyer
our hundred millions, and is easily |
to wield apowertnl influence
N the legislation Of the country. H
yer our free institutions are oyer
brown and our form Of government
ha aged, il viii be through the instru-
Of this banking system.
This policy is the same that was at
empted by tie old federal party at
be close Of the revolution, but was
tipped in the bud by the veto Of
President Jackson. When that bill
or the establishment Of a national
ank was discussed in 1911, Henry
LAY said; Fl conceive the establish
ltNb VI AIl3 RutllA AoAlEEhRAe " tHS
afety and welfare Of this rcpublic,'
Ohm Randolph said @Charter a
ank with thirty millions Of capitqE
It 1t establish and learn its power and
hen find if you can means to bell The
at. 1t viii be beyond yoar power,
/ will oYerawe congress and laugh al
our LAWS read in republican
aper j few days since an article 10
raise Of tliis boastsd scheme, and the
My point il mskes IS that it il safe.
. is q bone safe that man gets in
IS throat and can't get up nor down
rue, ,biil holders loseno.hing II q bank
ais, for government has security in
he investment bends 10 redeem the
Of the broken bank Bat
oes that compensate IS for the high |
9niIs, internal revenues, arl taxes
eeessarily ls,iel on tas peoRe to
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