Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1891-09-23
SPECIMEN ROT.
The Kind of Bosh Eastern Bankers Expect
the Credulous Farmer to SwaIIoW

The Kind Of Bosh Eastern Bankers Expect
the Credulous Farmer to Swallow.
IF circulating notes were issued to
all the farmers who wish to borrow,
how much would such notes be worth?
Perhaps the value of farms and their
equipment and stock may be $40, OOO,-
600, 900 or more, and at half their value
$40, 600, 900, 900 could be loaned Even
the $50 per capita for which the ma
tional alliance asks would not go far.
The increased issue of 81, 500, 600, 900
might answer for about sixth of the
farms. But with what decency can the
government provide for a small frac-
ton and leave the rest to suffer! Or by
what practical method can IL confine
loans to actual owners of farms really
cultivated and prevent absorption of all
the money by real estate spectators
and operators in town lots? No pre-
vention is possible In order to have
enough money to go around with the
farmers, there would have to be issued
two or three times as much as they
would want Meanwhile, long before
the $50 per capita should be- issued, the
paper would have dropped in value SO
that no farmer would wish to take it
for his wheat, and yet he could get no
other money, for gold and certificates
and notes redeemable in gold would be
locked up and boarded. "-American
Banker
The foregoing is bosh, pure and un-
adulterated bosh, and 1 am convinced
by steady perusal of the American
Banker, that the man who wrote it
knew it was bosh.
First-There is nothing contained in
the demands of the alliance that ever
hints at equipment and stock" being
made the basis of an issue of circulat-
ing notes
Second-There is, perhaps, in the
hands of the people, outside of the
United States treasury, 81, 200, 900, 900
which would be increased to about So
200, 600. 600 by per capita circulation of
$50 per capita, giving the people a
banking capital of 81, 600, 600, 600, with
which to go into the banking bushes
on their own account
Third-The national banks alone.
with combined capital amounting to
less than 500, 600, ,0O0 have managed tc
loan out almost 81, 900, 0OO 600. How
did they do it? l answer, by system
known as deposits, loans and dis
counts"
Fourth-H the national banks can
loan $1,000, 600, 900 with a capital OF
500. 600. 600, what is to prevent the peo-
pies banks, with the same system OF
deposits, loans and discounts from
loaning s., 600, 600, 900 with q capital OF
g, 200, 600, 900? And if the people bv
loaning their own credit to themselves
at two per cent established that as the
prevalent current rate, would not the
national bank stockholders have tc
loan their money at the same rate OF
let 1t lie idle in their vaults?
Fifth-H the people loaned their own
credit to themselves at two per cent.
paying one per cent upon time deposits.
could not the borrower pay not only
the interest but also one-sixteenth of
the principal as easily as he now pays
eight per cent interest? An would not
that furnish an annual 1oanable fund of
$3.50, 600. 600 if there were q, OO0, 600, 600
loaned out to begin with?
Sixth-Does the American Banker
think that the farmer would borrow
just for the fun of the thing, or is it
prepared to admit the fa1sity of Mr..
Porter's mortgage statistics? ask this
question because. If Mr.. Porter tells the
truth, less than $3, 900, 600, 900 would pay
of all the present existing mortgages?
Seventh When these mortgages were
paid OF what would those to whom the
money was paid do with gueh money.