The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1890-05-20

this Cnoy must get cOn6EOL VI OOH-
gress, which they did. The result of
which was that Infamous exception
clause on the greenback that was con,
summated by act of Congress Feb
ruary 18th, 1862, wherein it was
stipulated that "the greenback should
be Iegal-tender for all debts, public
and private, except duties on imports
and interest on the public debt which
from that time forward should be
paid in coin" When this act was
passed the money kings rejoiced. They
had accomplished their purpose. They
had created a demand for their gold.
Henceforth the government should
bow to them and none should question
their right to WELD the golden sceptre
of money king. They had no army
or navy at their command but they
had subjugated the people ore effec-
tually than the army did.
Gold Immediately went to l85 per
cent. That is 81 in gold would
bring $2.85 in greenbacks. The gold
was then bound to be had to pay the
duties on imports. This $2.85 in
greenbacks, which the importer paid
him for the ST. in gold he Immediate
ly invests in government bonds at
face value, and it is stipulated on
those bonds that the interest must be
paid in gold and in advance. He col
lects his interest in gold and the
next day is ready to sell it to the i'm
porter at 1876 per cent. Not contented
with this large profit, their next
scheme to rob the people was the
national banking act, passed in 1868.
By this act the capitalist was per-
mitted to invest his greenbacks in
government bonds at face value, and
upon these bonds he not only drew
gold interest in advance but by
means of the bank scheme he actually
had 80 per cent. of their value re-
turned to him. While drawing in.
terest upon the entire investment in
the form of bonds, 80 per cent. of it
has been returned to him in the form
of national bank notes and it is with
these he carries on the banking bust
ness, loaning them out upon the most
advantageous terms. On the one
hand he draws interest from the gov
eminent; on the other from the same
investment he draws interest from
his Individual debtors, allowing him
to draw two interests from the same
investment at the same time. Further
the national banks, as repositories of
the United States Treasury, to-day
hold $50, 600, 900 of the peoples
money upon which they do not pay
any tax nor do they pay one cent in
terest, but are, and have been, for the
last twenty-five years, loaning it at
from 8 to II per cent, or using it
for effecting orner on the necessares
of life.
l can better illustrate by quoting
from the Hon. S. S. Marshall, of Hi.
nois, in a speech on the floor of Con
gress July 21st, 1858, when he men,
toned the following instance: can
association of gentlemen in an Eastern
State raised $500, 900 in currency.
They went to the Office of the Register
of the Treasury and exchanged their
currency for $500, 900 in six per cent.
gold bearing bonds. They then went
to the Office Of the Comptroller of the
Currency, in the same building, organ.
lied a national bank, deposited their
$500, 900 in bonds, and received for
their $27O,OOO in national currency.
They had let the government have
$4,000 in currency mor than they
received for banking purposes and
had on deposit $500, 900, on which
they received as interest from the gov
ernment $4,000 a year in gold land
exempt from taxati0n.)
1t was pretty good fnanciering for
these bankers to receive $18, 900 a
year in gold on the $4,000 in cur.
rency which they had thus loaned to
the government. But this is not the
whole story. They had their bank
made a public depository. They soon
discovered that there was scarcely
ever less than S. 10000 of govern.
ment money deposited within their
vaults; they c i not like to see this
vast sum lie id.
They took 81, OOO,O 900 of this gov.
eminent y and bought 81, 900, GOO
of five twenty bonds with it. In
other words they loaned $l,OOO,O 900
of the governments own money to the
government and deposited in the
vaults of their bank the bonds re.
ceived and on which they received
from the same government $50, 900 a
year in gold as interest. Thus for
the $4,000 in currency which they
originally loaned the government they
received annually, IL all, SIS, 900 in
gold"
But this vas by no means the limit
to the legalized robbery which these
gentlemen capable of perpetrat.
ing under the national banking laws.
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