The Kinsley graphic. [volume] (Kinsley, Kan.) 1890-1940, 1891-11-13
me PEoPLE vs.. The Banks,

84AAaGa hAA-H--sz 4A easy A-AA4A~
ton, from the discussion OF the silver
question, 70 q defense of the national
banking system 1t Is nv purpose in
this article 70 crtticise some of Mr
Wheeler'a arguments aud discuss the
national banking system from the
standpoint OF an alliancemau, or per
hsps I should say. as one of the people,
for there IS . national citizens as we'll
as a national farmers alliance. both
bodies advocating the same principles
and having the same ends In view, and
when / say people, I mean the masseA
in contrsdis istinction 70 the classes-thG
bees, rather than the droues-labor,
productive and distributive. which pro
duces and peEfects all forms Of real
wealth and pays nearly all taxes La
Dor, just now, Is thinking aud IS using
its thinking faculties as it never
did before Labor heura a great deal
about the "uaeEampled prosperity" of
the United States aud her marvellous
increase In wealth. amounting 20 100
per cent from 1870 TO 1890, but It feels
that 1t has no part or lot in the nations
prosperity Labor has been balancing
the books and e dnds 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 pirEtical schemers have also Gctu-
/ ally acquired the ostensible ownership
Of fen billions Of wealth possessed by
| labor in 1870. Seeing in these moment
I Gus facts grave portent of danger 20 the
! American republic, the people, reason
/ ing from result 70 cause. would G fleet
pesceabIy with the ballot recoustruc-
/ tiou Of our economic system, which
must otherwise be effected by a forcible
/ revolution
It is, perhaps, needless for me TO re-
I mind your readers that the people look
/ upon the United States bonds as hEv-
/ ing been conceived in fraud and born
| in iUiquity," and as being unpleasant
] "reminiscences of an i'm mbecile aud trait
Orous policy. which results In the
wantOn destruction of the peoples
| money and the substitution therefor Of
an interest bearing debt 1t would also,
! perhaps, be an act of supersrogatiou
on my part TO call attention to the
fact that bonds aud green back notes
{ are alike the peoples notes or certified
checks. both dependent upon the
/ nations wealth and sbility 70 pay
! taxes There is this difference, how
/ ever, the bonds bear interest aud the
greenbaclzs do not National bank
bill are the notes Of private CorporG-
tion indorsed by the people aud
redeemable in green back 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 6 basis
/ for this strange aud hybrid currency
No one is benefited but the bondhoider
and banker, and the arguments they
advance in support OF the system are
! based upon selfish and nerGenary mo-
tives- The system gives TO n class Of
avaricious and unpatriotic money
mOngers enormous gains coined out OF
the blood Of those who saved the M
ton aud preserved the union, VINO have
l waRed a hopeless struggle against fate,
since the war, ia an effort TO pay the
interest upon the money received by
them at par at the rate of SI5 per
month for their services 70 their coun-
try in her time OK need.
Mr. Wheeler has a great deal 70 say
about a national debt" As a matter
of fact there was and need have been
no such debt. Who furnished the gov
ernment any specie. and how much did
, they furuish2 The bonds were almost
5 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 papel
] money. which the holders Of this stuI
, called specie. depre eciated TO serve theu
5 own selfish ends hr. Wheeler says
First there IS a loss TO the minority o.
E our national banks, and soOE will be q
% all of them on their circulation, agt
th5s lass must Be borne 5g che people IN az
p tsay cT a tar 0f high interest 10 tAs 50rr2t1
D e." tItalics are mine-) To the hra
. clause of Mr.. Wheeler's assertion, th,
. people enter an emphatic denial, whicl
Is emphasized by the alacr.ty viii
Z which the bankers avail themselves %
the opportunity TO continue their bond
- at two per cent interest Let us hgur
! little. First upon the basis OF : pc
D cent bonds at par. A banker invest
s 81 600 Ia a bond upon which he receive
b $50 in interest He receives 5000 Z
s bank upoui 4 e., 20 loan out, whicl
, nets him at least sT2 more; total, Si1z
e per cent, 1I.2. But to this statemen
2 [ our banking friend demurs, becaus
- the bonds are at II per cent premium
/ Very well, let MS try that basis tn
r Investment Is 81, no; interest on bonds
p $40, and interest on bank currency, 81
2 total, s112; per cent, O. 81 Now, let q
= see what revenue the S1,ITO woul
b Weld. invested In other chanueli
e as that is the only true way q
determining the advantage in favor q
/ u the baulr Investment Say 81 40 at
b Der cent (the rate as before. plug q
p on eircuIation) the interest would D
D. stO5 80. less tax. say $40. So net sG2. 81
e or SO less than the bank investmsu
q In other words, the bank investmer
-e pays 8.57 per cent, while the businsi
= Investment pays $50 per cent Upo
D. the basis OF two per cent bonds at "a
10 the banking investment would yiel
90 per cent, as Egainst the yield 1rol
q business investment Of 8. 80 per cen
But these are subordinate, c0rrelativ
n questions, and are not 20 be compare
la in inheritance 20 the vital aud par
u mount issues. which are 2uEeparsbl
- connected with the national bank que
g ton Mr.. Wheeler has kindly 1uruishs
ls in his communication arguments a.
le ideas tending 90 show the iuiquity &C
50 frsbecilfty OF the whole system- II
Of instance. he says: Surely. Senat
ae Stewart and his so-uinera couid u
le o55eet 70 the government b0rroWiE
ln money from oEr own people at one p
T. cent per annum. when it Is now COZ
- PEELED 70 borrow money aud Is payil
be Sour per cent Shades of lincoln, Je
A. fsrson and Calhoun4 Into what sort
% straits has our proud sud nigh
n nation fallen that iE should ha