The farmers' union. (Memphis, Mo.) 1891-1895, 1891-07-16
DISEASED BUSINESS.
SCARCITY OF BLOOD" WHAT
KILLS THE PATIENT.
Business Men of the Nation Eust Fail I'm
loss Thcy Have the Benefit OF Money at
Cost National Banking Iliustrated-
The Government Sh"uli Control tho

bankers in productive enterprises. For
illustration, suppose we divide society
into two division the first division TO
have the b nctit of banking. rs banks do
now, the second division to depend upon
the banks of the first division for the
use of money t. do their exchanging
with. they to ay interest at the rate OF
& per cent. for its use; in all other re-
spectS both 1iVis Ons to be on cquai loot
inc-euual facilities for Production,
equal markets, and equally industrious
For the purpose of computation, we will
supp, Sc that each division possesses
twenty millions worth of wealth i'll the
form of homcstcads and manufacturing
plants-in other words, real eState-thc
value of their joint production to b"
twenty millions annually: c lSt of main
tcnan"c, ten millions of the prodrct;
annual increase Of wealth. ten millions
in product In order to make the neccS-
sary exchanges needed to create this
wealth, they must have currency "r
money to the amount of ten millions Of
dollars.
Government makes currency or cons
money for the first division to the extent
of tea mi lion. Sufficient in volume for
both divisions Second division may
hire their money of the first division.
Here are the figures for the first arS
business:
Account of first division
Value OF product sold. $40 .so,0U
Interest on - ,0Jo, ,t0i at per cent. 100000
1othI lHCotllt. - ,P'',o'o
Cost Of product. ........SJ,0 0,Ub
Int. on Sln.0J0 a0o. per ct l0),Wo
Total expense. $4,000 a,1oo,0@
Cal, or nro6, .. 81 lA) 900
Account Of second division
Value of proiuc: lI..............Si0,CJ id CD 1903
Cost OF product.....-.....S .S9..'G1,H0
Int. on $, pW.ooo q leret. 3oD,on
Total expense. ........ S9,3,D.0O $500, 900
Hafn or prs lit-... -..-.----.-.....-. SUM-
Thus it is seen that the money capital
| at Il lC-pcr-rcnt. pi Oft has drawn as lis
| share >2.o0o0po The iirs. division, by
means of the monopoly granted by Gov
| crumcnt. gets as its share Sl.2on,O ,Ooo,
! The second division gets >7co,oi0, and
| the Government as interest $1,000 q.
| Ten per cent is considered fair profit
! for the risk Of business. and & Ecr 60 It,
| a fair rate of interest for m nny. Such
| is the inevitable result Of iSsu ng money
| to the people through the banks less
| than Onc-tcnth Of our hu mess men now
| en- oy the benefits of banking. 1t is
| evident that the business men and bank
| crs of the first division can unite in a
common interest and by means Of their
monopoly of money bankrupt the bust
ness of the second division
That banks. either ,iir.rfl, or indi-
| rccty through some Of their directors
ar sien: partners in speculative or
| productive enterprises, no on ac-
| 4uaintcd with business methods will
| doubt
| ask you what are the chances Of Suc-
| cess for the business man i'll The SC ,oid
| division? The business men Of the sec
ond division must hire their money of
| the first division, giving real estate
Sc urity for the return of the principal
at some specified time, In the mean-
time pay an animal interest of i FER
cent. in money. Hcadcr, ! want yon t.
follow me closely in my statement of
| facts. You will perceive that the con-
| tract is TO pay the sum Of $500, 0oo as in
| tere>t annually in money. What | want
to determine is where they will get the
money to pay the interest with unless
they take it from the sum bo rowcd
While they can create material capital
by means Of labor they cannot make
money with which to pay their interest
| 1t must he drawn from the borrowed
| money 1t is evident that in few wears
| their working capital must become re-
duccd to the extent that interest
! in money has been paid; at the
end OF ten years they viii have
paid S3,0Oo.0O of the borrowc |
| money as interest and must fail to that
extent. The security pledged for the
return OF the principal must be sold to
| complete the contract Sixty per cent.
| IF hos i,, l.,
Now, while you have Great d s. 900, COO
Of material wealth by your industries,
you must fail for S3.ooc,Ooo borrowed
| money Your goods aud plants must be
| sold as bankrupt stock to complete the
| contract with the bankers. lou per
Ceivr that the amount of failures must
| equal the amount of interest pad in
money. Such is the inevitable result
| under the present mcthol of issue. In
the present condition Of s"cicty. nine
tcnths of the merchants, manufacturers,
and fari erS are in tho second division
| Reliable statistics prove the fact that
ninoty-cight per cent. Of them b come
bankrupt in the course of a generation
| Should the one tenth. who now con
troll the currency deem it for their in
tcrcSt to withdraw their loans from peu
pie for the purpose of investing n pro
ductive enterprises they are free IT, do it.
The people have no power to prevent it
under the existing laws of the country
They must submit to their dictation
That they are disposed to take the ad
vantage of the people is evident by the
international trusts that have been
formed within the last five years (if we
can believe the daily press for the con-
troll of the staple industries OF the world
in their own interest. If you permit
them to do it you must become their
servants, with no choice but to do 1hr;r
bidding. by the control of the currency
of the nations they AN and do control
| the industries. Burfank, in North.
! artst Reform Jrurnu'.
| TIN Rnuto Suls-sIy