The midland journal. (Rising Sun, Md.) 1885-1947, 1891-11-06

distributed in payment of store bills, wages
and for various other dues which the bor-
rowers are Obliged 10 settle. This money
is no sooner in the hands of the receivers
than It is placed back in the banks, each
depositor's account being credited with the
amount paid over the counter to the cashier.
The money that is paid out in the morning
on checks together with the sums paid
weekly to borrowers is nearly all back in
the banks by three O'Clock the same day.
Many Of the borrowers do not draw any
money but in place of the cash are credited
with the amount of their note, which they
check against, Thus the money he borrows
is both drawing interest for the bank and
at the same time adding to the volume OIL
the deposits, the loan itself enabling the
bank to make additional loans by'seemingly
adding to its deposits. And SO it is with
every note that is renewed. The renewel
in place of receiving money pays the dis.
count or interest and his loan is extended
sixty days longer, and he is credited as a
deposition, his note being placed TO the re-
sources Of The bank on the ledger. 1t will
be seen that by substituting credit or phan-
tom money by the bank in place of real
money, that the obligations of the public to
the bank become fabulous creations growing
out Of nothing. An individual loaner cam
not do this. He must have the cash to turn
over 10 his customer. and when be has
parted with it the same money does moi
return to him as il does to the bank, till the
life Of the loan has expired.
! When the peculiar workings of this
national bank business is understood, the
reason is obvious why they continue to send
back to the Treasury their circulation.
They have to pay small interest for the
circulation which comes out of the interest
of the bonds deposited with the Treasurer
And phantom money, or credit furnished
the bank by the United States government,
through the national charter 1t holds, costs
nothing and can be used to an almost unlim.
itless extent, for the less real money there is
| in circulation, the greater the need 10 bor-
row this credit money from the banks. The
vista opened by this system Of finance is one
of hopeless debt, from which there is no
avenue of escape. The borrowers make as
little money answer their purpose as possible,
and many of them handle hardly cent OF
what they borrow, but pay it 10 their cred
itors by checks against their debt. Every
cent of this imaginary money is steadily
drawing interest from the producing class
which in the aggregate is at least twice as
much as agricultural industry can extracl
from the soil; hence the surplus that has
been accumulated in "brighter days and
calmer hours" is steadily being absorbed by
the phantom money device, and the list OF
bankrupts grows longer with each succeed
ing year. 1t is very plain that It is only a
question Of time if the present financial sys-
tenn is confined. till the producing class
will be ground literally to powder, or till
they have reached the lowest strata of our
boosted christian civilization, which is wage
slavery, where all above bare, hungry
living created by the hand of toll will go
into The Golfers of the money controlling
class. While politicians and their party
papers are amusing the people with the false
cry of tariff, this monster of usury is liter
ally eating them up alive.
We have chosen our four national banks
merely as an object lesson, not that there is
anything peculiar 10 their management.
They in no way differ from the 3,540
national banks Of the country. II is the
system we aim to expose that the people may
take warning and flee to their tents while
they haye yet power TO make winning
fight for their rights. A little while longer
If the present conditions are permitted to
prevail the people will be compelled to
regain their freedom at the muzzle of the
rife and connan or remain in wage slavery.
There is one fact revealed by this volume OF
bank debt laid upon the shoulders of the
laboripg class of the country which is very
suggestive. The Farmers Alliance and
Grange are contending for a circulation
per capita of $50. If The number of the
population of the county is multiplied by
so il is found TO amount 10 almost the exact
sum which the banks show in their loans
and discounts. Was that amount of real
money in circulation, the people would es-
cape psying interest on phantom money to
the banks. The farmers are on the right
track as sure as the Lord reigns.