Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1891-11-18
MEDICINE LODGE, KANSAS.

form OF interest? And the people have
been studying this question, and have
arrived at the following conclusions:
First-The national banking system
is simply an intermediary loan bureau,
through which the government loans
to the people, such money being fur
nished to the banks at cost of issue and
leaned by them to the people at an
exorbitant rate of interest.
Second-The national banks and other
banking institutions claim "loans and
discounts amounting to five billions of
dollars. AS there is only FIVE hundred
millions of money in the hands of the
people, exclusive of bank reserves and
known boards, this shows nine dollars
of bank credits to one of actual money.
Third-The financial statements of the
national banks show that their capital,
surplus and undivided profits are in
cluded in the item, ''loans AMI dis
counts" SO their solvency depends upon
their ability to realize upon loans
secured by chattel and personal secur-
ity.
Fourth-The vast sum Of ave billions is
loaned at an average rate of not less than
tez per cent, thus involving an interest
charge to the people of Ave hundred
million dollars per annum.
Fifth-If the people could loan their
own credit direct to themselves at two
per cent, they could. with the same
money they now pay as interest wipe
out the interest-bearing national
debt" in about two years.
Reasoning from other premises, the
people have discovered:
First-Interest enters into all busi-
ness calculations and is factor in de-
termining all prices The current
prevalent rate of interest is the basis of
computation of all profits and values,
including land and investment securi-
ties.
Second-Interest represents the earn
ings of capital or money. The net an
nual increase in national wealth, or
residual increment" represents both
the earnings of capital and the net
wages Of labor.
Third-If the rate Of interest equals
the per cent. of net annual increase in
national wealth, capital absorbs the
total net product of the nation while
labor gets nothing.
Fourth-If the rate of interest is in
excess of the rate per cent of net an
nual increase in wealth, such excess
| must be paid out of the wealth pos
sessed by labor at the beginning of the
year.
Fifth-These laws or facts, coupled
with the high rate of interest prevalent
during the past twenty years, account
for the absorption by few individuals
of the thirty billions of wealth created
during that time and ten billions pos
sessed by labor at the commencement
of such period
Sixth-Laws against usury are abso.
able state of affairs. Driven by neces-
sity, borrowers combine with lenders
to evade the law. The people, as a
government, must establish a uniform
current rate of interest by entering
into competition with individual money
lender; thus, not only issuing money,
but regulating the value thereof
Nothing else will do it
Profoundly impressed with the fear
full significance of these facts of grave
portent, the people round out their
monetary demand as follows:
And such notes, when demanded by
the people, shall be loaned to them at
not more than two per cent per annum
upon non-perishable products. as indi-
Gated in the sub-treasury plan, and also
! upon real estate with proper limitation
upon the quantity of land and amount
/ of money"
| The people and the money power
are face to face and the battle of the
ages is to be fought out upon these
issues Banks of issue must go, or the
American republic. in few more years,
will have degenerated into plutocratic
oligarchy.-George c. Ward, in Amer
lean Banker.