The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1893-08-01
HAYsEEDRRs VS.. PLUrocRATs.
The Raleigh Chamber of Commerce Know
A Good Thing When They See 1t
For the Bankers.

For the Bankers.
In expressing an opinion or two
through your columns, I do not seek
prominence, nor do I wish to pose as a
doctor of Finance" l am not able to
sustain the first and my comprehension
will not permit me to be the latter.
But without wasting words and space,
7 want to make a statement, and then
ask a question.
Not very long since, when Congress
was in session, a class of people known
as "~hayseeders' and calamity howl
ers7 believed they were in trouble.
They sent numbers Of men and volum-
inous petitions to Congress praying
that august body to do something for
their relief, and they even presented
plans for consideration, Another class
of people known as "bloated bondhold-
ers" and ''plutocrats" hooted at the
representations of the '~'hayseeders"
and gave it as their opinion that Con
gress couldn't do anything, and that
the "haysee elders" ought to go to work!
And Congress evidently thought so
too.
More recently the ~"plutocrats" have
come to the conclusion that they are
in tt ouble and though Congress was not
in session they wanted that august
body to do something for their relief,
and they raised such an almighty howl
about it that Congress has been called
in extraordinary session to see what
the matter is, and to remedy the
trouble. I wish I could state these two
facts with a force and elaboration that
would strike the mental marrow and
| consistent reasoning power Of every
man of both classes. They are food
for some very interesting mental diges'
ton.
4 4 4 X X X 4
Now I would like to know why it is
so eminently proper to think that If
banking institutions can only secure
certain additional concessions and
privileges, the entire country and gen
eral public will be amply provided for.
There would undoubtedly be 0 u
rency, but where would the additional
power of that additional currency lie?
With the banks or with the people? If
the proper remedy for existing ills is
to increase the power of banking insti-
buttons, then I have asked a very fool
ish question. Otherwise there is some
propriety in the question.
X X x X X \
AS I understand it, a bank can now
take a 81, 900 bond costing 81, 100 and
under government regulations issue its
notes to the amount Of $3.50. The bank
gets 4 per cent. on the par value of the
bond, or $40 annually. 1t charges S
per cent. on the $3.50, or sos annually.
The banks total income from the bond
which cost 81, 100 is $1O8, or practically
10 per cent, less 1 per cent. on note
issue. This does not seem illiberal on
the part Of the government toward the
banks, and yet they would like more.
Under the resolutions which the
committee will present to the Chamber
of Commerce next Tuesday night they
would have the following: A bond
costing 81, 100 on which they would
issue 81, 900 in notes. They would get
$40 annually on the bond and $50 an
nually on the notes, or a total of 1920
annually on this investment Of 81, 100,
about - per cent. They would have
the privilege also Of issuing notes on
State bonds, dollar for dollar, and
would receive interest from the State
as well as from the notes issued, and
they wouldn't pay a cent Of tax on the
issue. Now, in consideration Of all
this, will the banks widen their Iati-
tude in the matter of securities? Will
they make a reduction in the rate of
interest? Nothing of the kind has been
proposed.-H. w. Ayer, IN Ne2c8 and
Observer, july 16.
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