The midland journal. (Rising Sun, Md.) 1885-1947, 1894-08-03
Our Financial System.

In 1892 there were sixty billions of bus
mess done through fifty-seven clearing
houses, and ninety-two per cent of the
business done through these clearing
houses was credit. only eight per cent
of money was used. This is the state
rnent given by the Comptroller of the
currency i'll his report to Congress.
From the most reliable information
which can be collected, there is i'll actual
circulation not more than five hundred
millions of money, (some statisticians
claim there is much less,) after deducting
the idle money held out of use, called
reserve According to the above
statement of the Comptroller this money
was used more than ten time in transact
ing the amount of cash business shown to
have been done by the banks. Eight per
cent of sixty billions being something
over five billions, which represented the
cash transactions by the banks, demon.
strating that the five hundred million
dollars estimated to be i'll actual circula-
ton was used ten times i'll making up this
amount of cash business.
All above eight per cent of the business
transacted was done with borrowed credit
of the banks, costing six per cent interest
at least. Let us figure the interest OH
sixty billions less eight per cent, which
represents the cash, leaving fifty five bill
lions, two hundred millions of credit or
wind money borrowed from the banks on
which the business of the country was
taxed in the shape of interest at the rate
of six per cent, making an interest drain
upon productive industry of THEE Bill
LIONS, THREE HUNDRED AND TWELVE
MILLIONS, gathered in over bank counters
in single year for the use of their credit
they claim but it is all credit of the
United States which stands behind the
banks with its bonds, its greenbacks, its
silver certificates and guaranteed national
bank currency. To put this absurd
financial system of ours in its truest
and plainest light it is the industrial
classes borrowing their own credit from a
lot of pet banks and paying said banks
three billions, three hundred and twelve
millions interest for the supreme privilege
of using their own credit to enable them
to transact business. Isn't it ridiculous?
Aren't we lot of big fools to allow our
selves to be buncoed in such brazen
menner?
The above showing, taken from the
books of the banks demonstrates that the
people in order to transact their business
on anything near cash basis, and escape
this piratical interest fleeing, need five
thousand millions of circulating money
in place of five hundred millions which
they are supposed to now have, in order
to conduct sixty billions of business. Not
having the actual money they are obliged
to substitute bank credit for money and
pay the enormous interest stated above.
We may safely accept this statement as
substantially true as far as it goes, as the
banks will not publish statements against
their own interest. And it may also be
accepted as the very minimum of expense
laid upon the public by placing the entire
nations money in the hands of private
corporations to manipulate and control at
their pleasure. No one will ever know
the amount plundered from the public
under existing financial conditions until
the money is taken i'll charge by the
establishment of government banks,
where the people can have their money
kept safely and use it without being bled
to death by legalized class of usurers.