The midland journal. (Rising Sun, Md.) 1885-1947, 1890-08-01
Our National Condition.

EXtTactS from fth oI JuIy speGch
delivered at Tarkio. No., by Hon. A.
J. Streeter
Let me show you some of the ad-
vantages the n oney trust has over you.
One dollar loaned for one hundred
years, interest compounded annually at
six per cent amounts to S340. But the
same amount, loaned for the same time
and compounded annually at twelve
per cent instead of six, would amount
to $34,675. Or one hundred and two
times more than the amount at six per
cent. At eighteen per cent it would
amount to SIS, l45,0O7, or A, $40 times
more than at six per cent. These facts
are presented to show the accretive
power of interest, and the fearful diff
ference between high and low rate.
| desire, however, to present other
facts before coming to the gist of the
matter. The government has created a
national banking system, and is furnish
ing some three thousand banks with
currency for use among the people, at
an annual cost to the banks of one per
cent and to the extent of ninety per
cent of the face value of their bonds on
deposit with the controller of the
currency.
The government further authorizes
the banks to loan the same currency to
the farmers, say in Missouri, at ten per
cent interest to be compounded from
one to four times 10 year.
Now let US see how it works in prac
tlce, and to make it more easily under
stood l take the sum of one dollar as a
starter.
One dollar, issued by the govern
ment to anational bank at one per cent,
compounded annually, would in one
hundred years amount to S2.75.
A bank in Missouri loans the same
dollar to farmer at ten per cent inter.
est payable annually. At the end Of
one hundred years the farmer and his
son will have paid the government in
the meantime for use of the same dollar
$2.75. Yes. cit is the best banking
system the world ever saw for the
banks.
These facts to some extent, show the
power and grip of the money trust when
backed by the government.
But, says one, if it be true that banks
Of issue hold such advantage over the
people, then why do some of them re-
ire voluntarily portion of their cir
culatiou? Don't they know a good
thing when they see it, aud have tried
it? Yes, they do, as l will show. When
the banks saw the enormously increas-
ing surplus that was being boarded in
the treasury they made an arrangement
with the treasury officials by which
they might retire portion Of their
circulation, secured by bonds, and on
the same security they received of the
surplus in the Treasury, one hundred
cents in place of ninety. This scheme
beat even national banking, In that il
increased their cash on hand, and
available for discount, ten per cent over
the currency retired, aud saved to them
the one per cent tax paid to the gov
eminent on the same.
This financial scheme, aided by tho
government, was good for the bank.
and explains why some OF them retired
part of their circulation.
A portion of the profits in nationa
banking has, however, been anticipated
in the high premium on the bonds
The competition to buy for banking
purposes has raised their price to 12s
cents on the dollar.
Did this financial transaction affec
you farmers in any way? Let US see
The government taxed every dollar o
that surplus out of the people, and i
belonged to them when in the Treasury
Then the government loans the people
money to tho banks, without interes
and without cost, to the end that tn,
banks may loan the same to the people
and make them pay the banks ten pc
cent on their own money. This beat
compound interest at high rates badly
and we know that continuation o
such policy and measurs, in the interes
of the money trust, would rob any bod
poor, though their streets be paved'witl
gold, and bring them to condition
now in sight to us,-poverty ant
serfdom,
Some of you, l presume, still cal
ours government of the people, ant
it is such to some degree; but the plu.
tonracu holds the winniny car6s