The great West. [volume] (St. Paul, Minn.) 1889-18??, 1891-12-18
THE PEOPLE VS.. THE BANKS.
The Banking System OF the United States
Must Be NatiOnalized in the Interests of
+bo Whole People.

Must Be Nationalized in the Interests Of
the Whole People.
Resuming the consideration of Mr..
Wheeler's communication, notice that
he glides by process of easy transit
ton, from the discussion of the silver
question, to a defense of the national
banking system. It is my purpose in
this article to criticise some of Mr..
Wheeler's arguments and discuss the
national banking system from the
standpoint of an allianceman, or per-
haps should say, as One of the people,
for there is national citizens as well
as national farmers alliance, both
bodies advocating the same principles
and having the same ends in view, and
when | say people, l mean the masses,
in contradistinction to the classes-the
bees, rather than the drones-labor,
productive and distributive, which pro-
duces and perfects all forms of real
wealth and pays nearly all taxes. La
Dor, just now, is thinking and is using
its thinking faculties as it never
did before. Labor hears great deal
about the ''unexampled prosperity" of
the United States and her marvellous
per cent. from 1870 to 1890, but it feels
that it has no part or lot in the nations
prosperity. Labor has been balancing
the books and it finds that not only has
this enormous increase in wealth,
amounting to about thirty billions of
dollars, been absorbed by less than two
per cent of the population, but that
these piratical schemers have also actu-
ally acquired the ostensible ownership
OF fen billions of wealth possessed by
labor in 1870. Seeing in these moment
GUS facts grave portent of danger to the
American republic, the people, reason
ing from result to cause, would fleet
peaceably with the ballot reconstruc-
ton of our economic system, which
must otherwise be effected by forcible
revolution
1t is. perhaps, needless for me to re-
mind your readers that the people look
upon the United States bonds as hav-
ing been conceived in fraud and born
in iniquity," and as being unpleasant
"reminiscences of an imbecile and trait
orous policy, which results in the
wanton destruction of the peoples
money and the substitution therefor of
an Understanding debt It would also,
perhaps, be an act of supererogation
on my part to call attention to the
fact that bonds and greenback notes
are alike the peoples notes, or certified
checks, both dependent upon the
nations wealth and ability to pay
taxes. There is this difference, how
ever, the bonds bear interest and the
o1yc Mott 1o nj
bill are the notes of private corpora
ton Endorsed by the people and
redeemable in greenback notes or
paper money. Now, what good argu-
ment'can be advanced in favor of this
plan of putting into circulation paper
money issued by corporations, based
upon paper bonds and redeemable in
the same identical kind of money that
was destroyed to make room for basis
for this strange and hybrid currency?
No one is benefited but the bondholder
and banker, and the arguments they
advance in support of the system are
based upon selfish and mercenary mo-
tives. The system gives to class of
avaricious and unpatriotic money
mongers enormous gains coined out of
the blood of those who saved the ma
ton and preserved the union, who have
waged hopeless struggle against fate,
since the war, in an effort to pay the
interest upon the money received by
them at par at the rate of $13 per
month for their services to their coun-
try in her time of need.
Mr.. Wheeler hasa great deal to say
about national debt" AS matter
Is 60, ~
no such debt. Who furnished the gov
eminent any specie, and how much did
they furnish? The bonds were almost
entirely bought by the buyers thereof
with paper money, deprecated by such
buyers from anything but patriotic
motives. The people, the common peo-
pie, prosecuted the war with paper
money, which the holders of this stuff,
called specie, deprecated to serve their
own selfish ends. Mr.. Wheeler says:
First there is a loss to the majority of
our national banks, and soon will be to
all of them on their circulation, and
this loss must be borne By the people In the
aoay of tar Of high interest to the borroao-
en-" Qtalics are mine To the first
clause of Mr.. Wheeler's assertion, the
is emphasized by the alacrity with
which the bankers avail themselves of
the opportunity to continue their bonds
at two per cent interest. Let US figure
little. First upon the basis of 4 per
cent bonds at par. A banker invests
$1,000 in a bond upon which he receives
$40 in interest He receives 5000 to
bank upon; i. e., to loan out, which
nets him at least $72 more; total, SIP;
per cent, 11.2. But to this statement
our banking friend demurs. because
the bonds are at II per cent. premium.
Very we'll, let us try that basis. The
investment is 81, ITO; interest on bonds,
$40, and interest on bank currency, So;
total, $112; per cent, 9.57. Now, let us
see what revenue the 81, would
yield. invested in other channels,
as that is the only true way of
determining the advantage in favor of
the bank investment Say S1,17O at 9
per cent, (the rate as before, plus tax
1of; <ha into 4 -