People's party paper. [volume] (Atlanta, Ga.) 1891-1898, 1894-08-31
National Banks again.

| y
of Washington, Ca, writes us under
daCe OF August 18th, that Banker
of that city takes issue with us and
wants a further reply,
Owing to absence from home and
the fact that our mail had greatly &C
cumulatsd, Captain Anthony's letter
has been overlooked till now.
AS the subject is most import
ant one we will comply with the
wishes of the Washington banker
and be more elaborate in our expla-
nation Of the picnic enjoyed by the
National Banks.
/. The money they invest in the
Bonds excapes taxation, whereas if
they were to invest it in land, mer-
chandise, cattle, or produce, it would
have to pay It's legitimate share Of
the expenses Of government
,. The interest and the principal
paid to them from the taxes OF other
citizens is paid in coin, instead of in
paper money; and under the favor
itism thus practiced by the govern
menr, this Coin" is gradually com
ing to mean gold. The entire trend
OF legislation Is in that direction.
8. The money invested in these
Bonds assumes none Of the risks Of
legitimate business. Contraction of
currency only adds to its value. The
shrinkage of all other classes of prop
erty serve but to enhance the ad-
vantage it enjoys. The Bond be-
ing, in effect, a national mortgage,
every dollars worth Of property in
the Union is pledged to its payment
The government, through its power
of taxation, Is bound by the law Of
the contract to exhaust, if need be,
every acre Of land, every bale Of
cotton, every bolt of cloth, and every
chattel, rather than allow the bonds
to go unpaid.
Money invested in bonds escapes
all the burdens of government, all
the expenses Of Legislation, all the
chances of trade, all the risks Of fire
and flood. No panic affects it, no
riot dismantles it, no boycott or
strike or lockout can touch HAIR Of
its head.
The merchant has to work with
hand and brain to win prosperity ;
the farmer has to toll from sun to sun
to achieve success; the manufacturer
has to study every change Of maohin-
cry, explore every channel Of trade,
in order to reap profits; the bond
holder has he to do?
Moth. 1gfsave 10 sit, like Matthew,
sat the receipt OF customs" Paying
no tax himself, his job simply con
sists in fattening upon the taxes Of
other people.
SO great are the advantages de
rived from putting large sums of
money in bonds, that many capital
lists are content to keep the Bonds
without reaping the additional har-
vest which comes from banking upon
them. Mr. w. II. Vanderbilt, for
instance, invested $40,000,000 in
government bonds and did not bank
upon them at all. He considered
the absolute security of the invest
ment, and the freedom from taxation
of the money SO invested, as a suti-
Gent induoement to buy bonds.
4. The interest, to the extent of
many millions per year, has been
paid in advance during a long series
of years. This IS shown by official
reports which we will produce if the
assertion is denied.
On page 203 of the claws Relat-
ing to Loans and the Currency" will
be found the law (Section 5000
under which this practice of paying
interest in advance has become a
standing reproach to our govern
ment. The law was passed by the
republicans in 1864, but the demo-
Gratis still continue it in force.
Curing our brief and breezy ca
reer in Congress we introduced bill
to stop this prepayment Of interest,
but the Democrats smothered it in
| Committee room.
We stated that the interest was
paid semi-annually. The Washing
ton banker says it is paid quarterly.
On page 1876 of the claws Relat-
ing TO Loans and the Currency it is
stated that the interest on the bonds