The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1891-07-14
No. 81

and still lives to curse generations un-
born. Only a revolution, peaceable or
otherwise, will ever loosen it's grasp.
Oh, what a crime
The exception clause put in the
greenback was the bankers first de-
mand. 1t created an abnormal demand
for gold, and debased the greenback
until, compared with gold, they were
worth only 40 cents on the dollar. That
enabled the banks to buy and hoard
vast quantities of them, which they
did. Next they demanded law to
enable them to profit on said invest
ment. They goti of course. Having
invested largely in greenbacks and
Congressman both, they were now
masters of the situation. The rest was
easy. Their next demand was that
bonds be issued in large quantities,
drawing per cent. interest in gold,
payable in advance This was done
and they exchanged, and so, at one
jump, the bankers 40 cent. greenback
realized him 100 cents, equal to gold.
The products of labor went tumbling
in prices the other way, in the same
proportion.
One would think this was enough
to satisfy greed, but it wasn't. They
not only demanded that the govern
ment register and take care of their
bonds free of cost and exempt them
from all taxes, but that, in addition, as
the crowning act of infamy, it allow
them to bank thereon, and, crazy as it
now looks, it did just that thing, by
furnishing them black backs for circu-
lation as money among the people at
high rate of interest, an amount up to
within ten per cent. face value Of their
bonds, thus allowing them to obtain
two interests on only one investment.
One of cents gold on 100 cents bond;
the other 80 cents currency returned
to them by the government on same
bond. All the capital invested in said
100 cents was 40 cents originally paid
for the greenback.
By a system of short loans and dis
counts, known to bankers, it is safe to
assume that on an average the banks
realized fully II cents interest on the
black backs, donated to them by the
government. Add to this the cents
gold interest on the bond, and we get
1903 cents per 4annnam profit @on an
original investment of only 40 cents
paid for greenbacks, being over 40
cents per annum, by law, mind you.
Under this law, about 4, 900 banks were
organized with charters running for
20 years. Figures grow tired calculate
ing the profits piled up by these sharks.
This whole business from its concep-
tion, inception, on through its various
stages of deception, down to final cuI-
mination, was little short of the rank
est treason, and deserves the execra-
ton of mankind. If only mistake,
it was fearful; if a crime, it was damn
able. Under Cleveland's administra-
tion over 1900 of these banks were re-
chartered.
Now, for convenience, take $1O0 as
basis for circulation, and we will soon
ascertain the bankers profits growing
out of THIS villainous legislation
1. For 800 in gold he obtained $3.50
in greenbacks. 2. He exchanged the
greenbacks for $3.50 in interest bearing
bonds His net profits in this deal was
only $21O. 3. He drew SIS gold inter
est each year for 30 years $500. 4.
Black backs received from U. S. to
bank on-$225. 5. Twenty years bank
ing profit, say 12 cents per annuIn on
bonds present value so. Total,
$1345. Deduct from this, currency
now returned, black-backs- 1928;
amount to expense charged by u. s.
1925; total, $227.25. He laid down
$1OO, and picked up 81, 1875. All
strictly according to law. Now if we
ever did swear Qbut we dont), we would
say d-n such law
But this is not all. Money gives a
fearful leverage in shaping human
affairs Now if said banker during the
time, foreclosed a few mortgages, and
bid in the property at half its real value
(Which was often done) then there is
no estimating what his profits really
were, But how did all this affect farm
interestsa Tt halved all values of farm
products, and practically doubled all
Indebtedness, by contraction and get
ting the money to pay with out of our
reach, so that today it is as hard for
a farmer to pay 500 of debt, under
national banks, as it was for him to
pay $400 during greenback times. All
| know this Is trlIa