The midland journal. (Rising Sun, Md.) 1885-1947, 1893-06-23
Two Kinds of Money Unknown to
the Law.

The constitution of the United States is
very solemn compact, or rather contract
entered into by the States, in which each
State surrendered something of its sovereign
power in order to create nation under
which all could act in harmony. Among
the privileges, or sovereign rights thus vol
UNFAIRLY surrendered to the national govern
ment, was the hight to "coin money and
regulate the value thereof"
We find, however, there is another power
grown up insiduously under the government
which has not only had the right conferred
10 it Of regulating the value" OF money,
but il has usurped the authority to "coin"
two distinct species of money. This power
is the national banking corporation and It's
Clearing House Association, whose head
quarters are located in Wall street, New
York. Last week this Association met with
closed doors. A press correspondent in
describing this secret meeting of bank pres
idents says:
at was said that the conditions in the
country were phenomenal, that the distress
is not due to lack of currency, although 1t
s1aay be indirectly due TO excess of ii; that
on the whole business has been wisely done !;
that the resources of the people, both public
and private, are immensely greater than
their liabilities, and that the whole trouble
Is due 10 the lack Of confidence which arises
from several causes, all operating jointly at
this time.
"That being so, ii was felt to be the duty
of New York banks TO do all in their power
20 restore confidence, although it is asserted
with great earnestness that these efforts
must be supplemented by the Adminisra-
ton in Washington. Little mention was
made of Congress, and what was said was
EXPRESSED in terms of doubt, and the opinion
was that Mr.. Cleveland would find himself
compelled before long to stand between
Congress and the best financial interests OF
the country"
Here's richness for you. The conditions
are phenomenal, not owing to the lack Of
money but may be to the excess of it. The
want Of money to meet obligations due to
the excess of it ! "Lack of confidence" is
Gle cause of the whole trouble. People in
business want money to meet their obliga'
lions, and these men say it is lack of con-
fidence. Confidence 10 what ? Ir the ability
of this conclave of inancerS 10 conduct
business without money. 1t isn't surprising
that sensible people who have debts TO pay
should lack confidence" under such con-
ditions. And then they feel it a duty "to
restore confidence" but the Administration
at Washington must assist these confidence"
men. Then follows the family masked hint
that Mr.. Cleveland shall usurp powers not
given him by Congress and "stand between
Congress and the best financial interests of
the country. That best financial interest is
Wall street gamblers and New York
national banks. These traitors actually
propose the President shall enter into
conspiracy with them against Congress and
the people!
After many very patriotic and eloquent
speeches, one 10 another, this secret concave
OF conspirators resolve TO issue Clearing
House Certificates, which is money 10 pass
current among the banks, and be taken in
exchange from each other to pay balances,
in place Of lawful money. This is in viola
ton of law. These Clearing House Ger
tificates and the credit money which this
favored class deal in, lifts them outside Of
law. No State bank shall issue such money
unless it pays tax of 10 per cent, but these
national bankers of the Clearing House
Association, do so to the extent of millions
and pay not cent of tax.
The security on which this Clearing House
currency is issued are the assets of the banks,
bills, or securities, or stocks, real estate and
any marketable collateral of whatever kind
held as assets by the banks, shall be deemed
proper security for the loan of this Clearing
House syndicate money. There were $780,
900, 900 of these :assets handed in by the
banks to the committee appointed by the 60
bank presidents who constitute the Clearing
11OuSt ASSOCidtlOu, W dosSSo anu fdIuSs OH
this sum the Association propose TO loan rs
per cent ifthe crippled banks apply for it.
Several have applied.
This whole business''is marvelonsly like, in
principle, the Alliance Sub-Treasury plan.
The Alliance proposed TO place their grain
and cotton in government warehouses and
borrow direct from the government so per
cent OF the market value OF the goods for a
not longer time than one year, at an interest
of per cent, clear of all other expenses.
This New York Clearing House concern
takes the assets Of the banks, which are
principally debts that have been loaned
upon by the banks which now find them
selves hard ny; the Clearing House charg-
!. ing per cent on the loans. The Clearing
House loans its notes to the banks, secured
by warehoused debts, while the farmers
proposed TO go 10 the legal source, and the
oply legal authority TO create money, and
borrow ON collateral that was clear Of debt,
and a howl was sent up by those same
bankers that such proposal was an unheard