The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1894-09-30

cans, VINO mad 1ull control of the gov
|ernment, began to bow down to the
golden calf.
Shortly after this conference. a law
was passed by Congress- to the effect
that greenbacks should be a legal tend
Ter for all debts, public and private,
except duties on imports and interest
on the public debt From that time
the soldier who risked his life for his
country received his scant wages in ma
per. and the capitalist, who, at one
time was able to buy two dollars and
eighty-five cents worth of government
bonds, for every dollar of his gold. by
simply changing the gold into green
backs, received his interest in c,ip. The
soldiers wife received greenbacks. with
which to buy her sugar at gold Ir.ces,
owing to the addition Of import duties.
which were paid in gold. More than
this, at one time Congress decla 90 that
the money loaners mtgn- draw their liz
terest for year in a ivance isy means
OF this, the man who owned 81 COO. 900
IN government bonds, drawing interest
at b per cent. which he hal purchas ed
say, for $Iae.O9o IF goli, coull draw in
advance mis- 500 I'D Of iiteres; AMI ,,,i.-
iehase si50,900 in bonds upon
which he would also receive
interest in gcId It is ;rue
that the necessities of the nation were
great, but they were not so great that
congress was required to make of the
people hewers of wood and drawers of
water Tor the spectators and money
loaners of England and of Wall street.
During the latter part of the war the
government paid the soldiers SIS per
month in greenbacks. The holder of
gold in July, 1864. could. with SIG in
gold purchase $3.50 of government
bonds How much could the soldier
purchase with his SIC? The loaner of
money received his interest in gold.
With SIG thus received. he could rein
vest in bonds of the face value of S43. so.
The soldier received his pay in green
backs and with his SIC he could only
purchase SIC worth of government
bonds. Which was the favored class?
Which way was our financial legislation
tending.
THE NATIONAL BANKING SYSTEM.
l am not opposed to bankers or to
banks, but, / say, that in the creation
of our national system, capital was
given great profit and great power.
The national banks have been a great
force in politics. In many lard
fought campaign, the thousands of
national banks threw their influence
to the Republican candidates. knowing
that Republican legislation would be
favorable to the money power. BY
means of the national banking act.
capitalists were allowed to invest their
greenbacks in government bonds at
their face value. Upon these bonds
they drew their interest in gold. And
while 100000 worth of bonds were thus
drawing interest, $4,000 was returned
10 the capitalist in the form of national
oank notes which he loaned to his Gus
toners at bankers interest. Thus. the
bank received two interests from the
same money. One from the government
ana one from the borrower. Was not
this law favorable to capital? Was
it not the creature of the Republican
party? Was it not so profitable that
5000 banks We're. established under its
provisions?
AS an Illustration of the profits, let me
call your attention to the remarks of
the president of the First National
Bank of Indianapolis, Hon. W. H.
English, when he retired from his trust
in 1877. He said:
congratulate the officers and stock
holders of our enterprise. The bank
has been in operation fourteen years
under my control. with capital stock
of 100000. In the meantime, it has
voluntarily returned 100000 of capital |
stock back to its stockholders, besides. |
paying them in dividends. 81. 496. $50
part of which was in gold; and I now
turn it over to You with a capital I'M
impaired and $927.000 of the undivided |
on hand. To this NAV be |
added the premiums of United States
bonds at present prices, amounting to |
S36, 900, besides quite a large amount |
for lost or destroyed bills
Let us see what the profits were.
Returned to stockholders, capt.
tai ................ ...S 500. 600 |
dividends to stockholders. 80. ], 496. $50 |
Undivided earnings ..... S21 900 |
premiums on bonds. .. 36 O0O |
Lost or destroyed bills .. $4,000
lotal profits ..................S2 81, 1888, 250 |
The profits of national banks were
so great that bankers were opposed to
the government issuing any paper
money at all. Let us consider a circular
sent out in 1873, to our bankers. n is
proper to say here that the Democrat tic
Congress of 1894, passed law making
national bank notes subject to taxation. |
A SIGNIFICANT CIRCULAR.
Dear Slr:-It is advisable to do all
IN your power to sustain such daily and
prominent weekly newspapers, especial
~ the agricultural and religious press.
as will oppose the issuing of greenback /
paper money and that you withhold
patronage or favors from all appli-
eants who are not willing to oppose the
government issue of money. Let the
government issue the coin and the |
banks issue the paper money of the I
country, for then we can better protect |,
each other. To repeal the law creating |.
rational banks, or to restore to circula- /
hon the government issue of money.
will be to provide the peopIe with L
money, and will therefore seriously
affect your individual profits as banker |
ana lender. See your member of Con-
sress at once, and engage him to sun
port our interests, that we NAV CONTROL
legislation. Signed by the secretary.
JAMES BUELL.,
147 Broadway, New York"
This circular needs no comment. It'll
speaks Tor Itself. 1t is a proposal to
corrupt the press in the interest of i
money and to place in chains those
who are in debt.
OF THE CURRENCY
AND REDUCTION OF VALUES.
But, we proceed a step farther. Let
is consider the act passed in 1866 con-
racing the currency. During the war
large amount of money had
been in circulation. AS result
prices had risen. 1t was pro-
posed to rapidly reduce the |;
-olume of currency and thus reduce
-alues. True, The inevitable result
would be distress among the masses:
tut, on the other hand, the value of B
very mortgage, of every evidence of |,
lebt and of every dollar in the bank
rs vaults would be enhanced. BY |,
he contraction the Indebtedness OF
ne nation was not reduced; for, when
Yer a thousand dollars of non-inter-
st bearing greenbacks were surren-
ered to the government to be burned |,
here was issued a thousand dollar in,
erest-bearing bond. The greenback
lad been employed in business. II Is
lad been used to build houses and to Is
'ay labor. The bond was locked I'D in Il