The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1885-09-17
It Is Solidarity, the Unity Of Which
Threatens the Corruption and Control
Of the Machinery Of Government.
Its Power Is Omnipresent, Both Subtle
and StrOng tO Maintain Laws for
Its Own Private I'rOfft.

rights for all classes Of citizens.
Banking represents the clarified es-
sence of the business transactions Of
the world.
One might az well inveigh against
roads, steam engines, markets, and
postoffices, as against banks.
But banking is only one of thou
sand kinds of exchange for private
gain, and no more entitled than the
others to have influence or power to
control. contract, or expand the vol
ume Of national currency.
hold that our national banking sys-
tenn is clothed with all these powers,
and necessarily employs them all for
private gain, SO as to contribute at
times to public misfortunes.
To begin with. it creates subsidized
class.
The national banking system, in
brief, is this: That when five or more
individuals who can command, say
$1OO, 600, form banking association,
they must use that sum to buy United
States bonds bearing interest; and the
Government agrees, for the purpose Of
helping them into the banking business,
that it will safely keep those bonds,
will continue to pay the interest to
those five individuals, and, in consider
alton that they engage in that particu.
lar business, will stamp the national
money signet upon $4,000 of bank
notes and deliver them TO the asso-
citation.
These notes are expected to have, and
do have, all the powers of money.
The bank lends them like national
coin, and can by law enforce the pay
ment of such loans in coin or legal
tender.
Behold our banking institutions
changed, in the twinkling of an eye,
from one having but 100000 of its
own money to invest, to one with that
amount securely invested, and 800, 900
moro in hand to lend!
Was ever 800, 900 more deftly taken
In?
Were this pretty subsidy the only
objection to the system, it might be let
alone as more lucky than sinful.
But the principle upon which the
system founded is dangerous to the
stability of business aud steadiness Of
values.
1t is stimulus to speculation and
imitation at one time, and contributes
to the paralysis of business at another.
Its powers are premium for the
violation of that cardinal principle Of
political economy, that "the power to
increase or diminish the standard OF
values at pleasure should not be given
| to kings, potentates, or powers" not
even to Congress or the President,
still less to little corporations ofprivate
| bankers.
It needs but knowledge of the law
| and the bank practice under it to show
that the banks have this power and
use it.
Let me illustrate:
When the country is prosperous the
banks naturally increase their cir
culation to meet o lively demand for
money.
As prosperity rises into speculative
activity, over-hopeful views lure to the
payment of high interest. and each
man that buys makes q profit, and he
that fails to buy is left behind, SO that
the feeling pervades entire commune
ties that buying almost anything il
safe.
More money is wanted.
The banks see profit in buying bonds
and putting out 80 per cent. of new cir
culation based upon them, thus adding
fuel to the spirit of speculation.
Let the revulsion come.
Immediately there is contraction
of credits by the banks. while the rusl
for money ut any price sends interes
still higher on what they dare lend.
As the banks gather in their loans
they are afraid to let them out freely
as before; they hold more in reserve
more and more as times pinch.
i If the business collapse is serious
they bundle their bills back to Wash
ington, take up our circulation" a
they say.
4 In short, after initiating the currenc,
with their notes SO as to promote spec
ulation, they are next interested in con
tracing SO as to make the result OF 1
, reaction still more profitable to then
and more disastrous to the public.
Money lenders Of oil kinds then gath
er in ut ebb tile the stranded wreck
, or property for pledge OF which the.
loaned those copious ISSUES Of banl
notes.
BY the very nature of their business
interests, round and round will rev olv,
this wheel of national bank initiation
and contraction.
The system is dangerous politica
power.
. The unity of the national banking
system threatens the corruption an.
control of the machinery OF politica
0 parties.
It's power is omnipresent.
81 It is subtle aud :trong to maintain
laws for it's own private profit.
The Jesuits of two centuries ago hat
o no more cient organization for con
trolling with unseen hands the govern
5 ments under which they lived.
S;rilar fears .baYe been eApyesse,