The midland journal. (Rising Sun, Md.) 1885-1947, 1891-01-09
The Great Money Octopus.


times which have sprung as from modern
Pandora box upon the people, the greatest,
and 10 fact the foster mother of all the
minor brood has been the money trust ofthe
world. Like gigantic octopus il extends
lis grasping, sucking tentacles over every
part of the civilized world. One of those
sucking tubes reaches over Egypt, drawing
every drop Of sustenance from the poor,
down-trodden fellahs Of that blighted nation,
above a bare subsistence for its working
people, ofthe cheapest and plainest fare.
India contributes $50 O0O, 900 in clear cash
besides the large profit on trade drawn from
that country by the same devilfsh. Every
country Of South America is taxed by debt
which sucks into the same Unsuitable NAV
everything that can be wrung from the
people. Canada, Australia, all feel the
sucking tubes Of this devouring ociupus
upon them. Every country in Europe is
hied to the verge Of starvation, among its
manual laboring classes. BY this devonring
money trust The United States is among
its latest and richest prey. Thirty years
ago next April the trap was sprung by the
great plunderers Of the globe which caught
the richest game the world ever produced.
This great money octopus hid long planned
10 fomeut war between the States over slay-
cry. and at last beheld its hopes consummat-
ed. To create great national debt in this
country was the object, and that accom-
plished to make the most out Of it was
openly avowed in the famous Hazard letter
which is familiar to every reader or should
be. That immense debt was created by
purchasing bonds with greenbacks. There
were four hundred and fifty millions of
greenbacks isshed in the years 1923, which
were funded in bonds and reissued till
$4,000, 1000, 900 Of debt was accumulated at
the close Of the war iu 1865. Jay Cook &
Go. were the brokers who undertook the task
Of selling the bonds. The bonds were
exchanged for greenbacks, dollar for dollar,
bearing s per cent interes, payable in gold.
the tariff receipts from imported goods being
specially appropriated for that purpose
Government used the greerbacks 10 pur-
chase army supplies, pay the soldiers, sail
ors, officers civil and military and for all
other purposes within its jurisdiction. Jay
Cook & Co. advertised the bonds in almost
every paper in this country and all the
leading papers in Europe. Capitalists Of
Europe brought their gold 10 the United
States, exchanged the coin for greenbacks
receiving in exchange from $3.50 to 1910
in greeobacks for one OF gold. AS fast as
Jay Cook & Co.'S. brokers disposed of the
bonds the money was returned to the
Treasurer and reissued till it showed debt
Of the above dimensions.
In 1868 the National Banking law was
passed. The bill was introduced by John
Sherman as war measure and hurried
through both houses in few days without
debate. The object of the law--ostensibIy
at least-appears TO have been to regulate
the currency supply. It was based on the
public debt, the bonds being deposited with
the Treasurer to secure the amount Of cur
rency demanded by the banks. When
currency was in demand the banks could
increase circulation to the amount Of their
capital by deposiling bonds with the Treas
urer and in case Of plethora, of money, a
paIt Of The banks circulation could be re-
turned to the Treasurer and destroyed, The
bonds held for its security being released.
This scheme looks plausible in theory, and
ought to have worked all right in practice
had il not been SO constructed as purpesely
to defeat these seemingly wise and benefcent
purposes. Only 80 per cent of the face of
the bond was issued in currency 10 the
banks. They were charged with the cost
of the plates from which the notes were
printed. FIVE per cent of the currency
issued for their use was held in the Treas.
nry to pay for sorting and reissuing notes
that become wofh and unfit for circulation
The banks were charged one per cent inter
est on circulation and $50 for each visit Of
The examiner; and there were other legal
~APeAoSo3 oouhS w WHICH we Dclicvc nave
been repealed. The greatest hindrance of
all, however, was the premium which soon
began to accumulate on the bonds. The
: law requiring the banks to deposit bonds in
the Treasury of the United States to pro-
cure charter and circulation, created
brisk demand for them, giving the manip-
ulaiors an opportunity to quote premiums
on an ever ascending scale till the time of
maturity began to draw near. These bond
premiums caused the banks to purchase
sparingly as possible, the premium paid 10
secure the requisite bonds being that much
dead capital, and the inevitable drop at the
approach of maturity pointing 10 total loss
in the end of all the premium, to the BANKS.
II will be seen that this was a well laid
scheme to force steady contraction of the
currency while safe speculation was car
Jied on by the bond holders Of the stock
market, or 10 fact the money trust which in
few years after the war got the most OF The
bonds into their hands. The law took the
power of issue out of the governments
hands, and placed ii in that Of the national
banks. The hampering conditions placed
upon the banks by the law and the power
exerted over them by the bondholders, in
sured steady contraction of the currency.
G. 4. ~