The midland journal. (Rising Sun, Md.) 1885-1947, 1892-04-01
THE NATIONAL
BANKS.

most IN 0rueT 10 supply tue nesessaIy
funds for carrying on the internecine
war then waging in the South. Vast
volumes Of money were necessary
beyond the capacity of the mines and
minis to supply in coin. Then the
legal tender bill came forward and
passed the lower House, creating o
paper money. based on all the products
Of the Nation and the patriotism Of the
people. This money, the House said,
should be an absolute legal tender for
all debts. Then the Senate took hold
of the bill-after the money power had
taken hold Of the Senate-and amend
ed the House bill by placing two i'm
portant exceptions into the legal teuder
clause, to wit: interest on bonds and
duties on imports. These two sacred
things, the Senate said, the greenbacks
should not pay. They may pay the
soldier for blood, but not the bond
holder for interest. They should be
accepted by the farmer and laborer for
sweat and toll, but not by the govern
ment for import duties. This Amend
ment the House accepted and the bill
became law. the greenback debased
from the moment of its birth-made a
bastard by the edict Of its father. Then
gold and silver. retaining their normal
value as circulating medium, became
the money of the banker as they circu-
lated between the banks on the one
hand and the custom house on the
other, and the disgraced greenback,
falling to 40 per cent Of its value as
compared with gold, became the money
of the people
Then the bonds-six per cent, nom
assessable bonds whose interest was
payable in coin, were sold to the bank
ers for what? Not for gold Bankers
bought them with deprecated green
backs. These bonds drew 6 per cent
interest in gold. Then they were 6
per cent bonds i they cost one hundred
dollars IN gold. But did they? No;
the Banker exchanged forty dollars in
gold for one hundred dollars in green
backs. He then exchanged his hun
bred dollars in greenbacks for 500
bond, which paid him gold dollars
per year. and was subject to no taxes,
National, State, County or City. In
vesting $4,000 in gold, he drew each
year gold dollars in interest, or Is
per cent on his original investment Of
40 gold dollars. But this was not all.
The Banker was allowed to deposit his
bonds in the vaults at Washington, aud
draw in National Bank notes 80 per
cent of the face value Of the bonds, to
again loan at 10 per cent or more,
Thus. then, the matter stands: Starting
with $4,000 in gold, the Banker goi
500, 900 in Bonds, bearing 6 per cent
n gold,-or $4,000 per annum. Then
with interest still flowing on, he drew
from the Government 500, 900. which
be loaned to the people at 10 per cent,
thus producing $1,000 year. So the
thrifty banker who started with $40,-
900 in gold was able to harvest Sis, 900
year interest--or 37a per cent. But
if this vast harvest of interest that the
Bankers have been drawing from the
people for quarter Of q century we're
all, we could stand it. But it was not
all. Already financial legislation had
been sought and readily produced at
the hands Of merchantable Congress-
men, whereby the contraction OF the
currency, with other causes operating
in the same direction, had enhanced
the value ofthe Bond to more than
double its cost price to the bauk. In
1869 came the GROWING infamy Of all
the act fer STRENGTHENING the Pub
lie Credit At time when the Gov
ernment needed no stronger credit
when ID had no bonds to sell-this act
was passed, declaring that the bonds,
which we're payable in currency (the
interest only being payable in gold)
should be paid in coin. This act, with
no reason for It, only to more greatly
enrich the bankers, added at least 500
million dollars to the value of their
bonds. Then the rock ribbed noun
tains of the West, as if with hearts
softer than the hearts Of the plumber
ers, opened the food.gates of their
hidden treasures and poured forth
streams of silver that amazed the world.
But the genius of the Congressman
who the bankers owned was equal to
the emergency. Silver vas coin, they
said. Bonds we're payable in coin, they
knew under the act of 1869. Silver