The midland journal. (Rising Sun, Md.) 1885-1947, 1892-06-03
Friday. June 3, 1892.
ST. LOUIS DEMANDS.


government only, full legal tender for all
debts, public and private, and that without
the fuse of banking corporations a just,
equitable and efficient means of distribution
direct 10 the people at a tax not to exceed 2
per cent be provided, as set forth in the
sub-treasury plan of the Farmers Alliance,
or some better system also, by payments in
discharge of its obligations for public inn
provements.
Briefly stated, this demand means the
abolition of the national banking system and
the issuing of sufficient volume of money
by the government direct to the people.
This demand is based on the experience Of
years, and is in perfect accord with the
trend of progressive civilization. National
banks are based on the national debt, and it
is claimed they were originated TO absorb
or furnish market for national bonds, and
hence patriotism was the prime factor in
their inception. This claim is absolutely
false, as the records will show. At the
close of the fiscal year, Jnne 80, 1868, there
were only 26 banks holding $l,1S5,75 in
bonds. AT the same time, in 1864, there
were 467 banks holding $44 ,266, 300, and in
1865, 1894 banks holding 1926, 9S9, 200
There was no very great show of patriotism
up TO this time. The first banking act was
approved February 25, 1868, and the war
closed in April, 1865. In the uncertain
days of 1868, comparatively no banks were
instituted the developments of 1864 were
more encouraging, and an increase is
noticed but in lS65, when the result of the
war had been decided, the number increased
rapidly, until now there are 1904. There
never was single spark of patriotism in
the system it was the result of cold-blooded
calculation.
1t is the most perfect method of robbing
the people on the one hand and the govern
ment on the other that is possible 10 invent.
At the expense of repetition, it might be
we'll to state just what bank is. since it is
not CLEARLY understood by many people.
Five persons or more Join together and
subscribe not less than $4,000 as stock for
a .bank. Let the example be bank of
$4,000 capital, which is the smallest allow
ed. AT least one-fourth of the capital, or
$12 500, would have to be represented at
the United States treasury in government
bonds at :heir face value. The entire
$4,000 could be expended in bonds if the
stockholds saw fit. The bank can draw 90
per cent of $50 900, or $12, 800 in national
bank currency, as it may choose, or not
any. There are quite number of large
banks that have bought the required amount
Of bonds, but have never drawn single
dollar in currency. The government bonds
have drawn from to per cent as rule
since the system was inaugurated. An
average of 5 per cent will be taken. The
bank business would stand as follows
$4,000 in bonds at 8 per cent 81, 500
$4,000 in national bank currency loand to
customers at per cent. Observation-Disclosures. 600
Earnings per annum. Sc. 100
An average of - Us per cent on capital
invested. There is a charge of per cent
by the government. Plain people call it
interest, bankers call it duty. This, how
ever, is done to coyer up the fact that it is a
loan. Bankers will say that this money is
not always loaned out, and that per cent
must be held as redemption fund.- This
is Gall bosh, and calculated to deceive
interest is paid in advance TO bank and
compounded from twelve to fifty times each
year. Half of it is never taken from the
banks, but is left there subject to check,
and is loaned again in ten minutes after the
first note is made. There are thousands OF
petty stealings in this business which taken
altogether make mp an aggregate which is
appalling. National bank profits from
1864 TO 1891:
Received as interest on circulation
during 81 years, compounded at s.
per cent. ACKNOWLEDGEMENTS. $201S, S41 ,078
Interest on United States bonds 41-2
per cent OBSERVATION-DISCLOSURES. 159, 400, $50
Interest on deposits, at per cent. 2307 PAT 05s
Profits on purchase of bonds. 49,, 141, $50
Total. SIS, 969, GAO $50
The above is a conservative estimate from
actual figures of the amount made by the
banks in their transactions with the gov
eminent and the people. When we con.
slider that all this vast sum was paid BY
producers for the nse of tool of exchange
that ought not to have cost scarcely any
thing is radically wrong. Common sense
dictates that this tool of exchange should
be so cheap that no set of men could levy
this enormous tribute upon the people.
Having given the profits of this iniquitous
system, the next question to consider is its
effect upon the industries of the people, and
the reason why it should be abolished.
There is SO much information contained
in the above article exposing the national
bank swlndle, written by N. A. Dunnng
and published in the National Watchman,
that we republish it in full in lieu of any.
thing we might produce on the same subject
'National bank profits from 1864 TO 1912
which is stated 10 have been close to six
billion dollars, though seemingly incredible
we do not think is any thing like the amount
gathered IN by those institutions. II will
be seen by carefully studying the above that
there is no necessity whatever for the pur-
chase OF bonds on which to found bank
The bonds are supposed TO be held by the
government as security for the return of the
currency-national bank notes-but manv