The Caucasian. (Clinton, N.C.) 188?-1913, 1894-11-08

TOM WATSON SHOWS Up The M
TiONkL BtNKiEI SYSTEM
THE PEOPLE Do MOI H4YE \ PGCSIC
BUT THE BD>DHOLDER DO.
senator Ransom voted for This Inf tauou.
- stem. Read and see How il work.
K4n~ou Knew Thi- W hen he voted forir-

FN"'At'' AAAh~Ohi s'LFh ISF hlr tHE HuUu
System. Read and see How it work.
Kan@ou Knew Thi- when he voted forit
Peoples Party Paper, Atlanta Ca
Some time ago We were asked b,
a correspondent to state wherein tn,
National Banks e"joyed a picnic.
Our friend Capt 4. VI. Anthony
| Of Washington, Gs., writes uo undel
date Of August l3rb, that i Banke
ot that city takes issue with us aue
wants further reply.
OwIng to absence from home anC
the fact that oar mail mad greatl,
accumulated, Captain Anthony.
letter has been overlooked Til now
As the subject is most import
ant one We will comply with the
wishes of the Washington banker
and be more elaborate III our expla
nation Of the picnic enjoyed by the
National Banks.
l. The money they invest in the
Bonds escapes taxation, whereas il
they were to invest it IL land, mer-
chandise, cattle, or produce, it would
have to pay its Legitimate share of
the expenses Of government.
Z. The interest and the principal
paid to them from the taxes Of other
citizens is paid in coin, instead of in
paper money; and uuder the favor
ltiSm thus practiced by the govern
ment, this "Coiu" is gradually CON-
ing to mean gold. The entire trend
of Legislation is in that direction.
3. The money invested in these
Bonds assumes none Of the risks of
| Leg tlmate business. Contraction of
currency only adds to its yalne. The
8hrink4ge Of all other classes Of prop
erty serve but to enhance the ad-
vantage it enjoys. The Bond being,
in effect, national mortgage, every
dollars worth of property in the
Union is pledged to It's 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
chattle, rather than allow the bonds
to 60 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 manufac-
Curer has to study every change Of
machinery, explore every change Of
trade, IN order to reap profits; the
! bondholder-what has he to do?
Nothing save to 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.. ". II. Vanderbilt, for
instance, invested $40,000,O00 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 50 invested, as a suffi-
cient inducement to buy bonds.
4. The interest, to the extent Of
many millions per year, has been
paid in advance during long series
Of years. This is shown by official
reports which we will produce if the
assertion is denied.
On page 2O3 of the claws Relat-
ing to Loans and the Currency" will
be found the law (Section $500
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.
During 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 166 Of the Laws Relat-
ing to Loans and the Currency" it is
stated that the interest on the bonds
shall be payable semi-annually, or
annually.
On page 179. discretion is given
the Secretary of the Treasury to
make the Interest on funded bonds
payable quarterly.
On page 163 (act of 1864, already
referred toy the Secretary is author
led to ''anticipate the interest by d
period not exceeding one year"
What the practice is at this par.
ticular time we cannot say, but it il
certainly fact that the prepayment
of the interest has not heretofore
been always confined to quarter).
payments, nor does the law read tina
way.
;. Having salted his cash down il
a bond which pays no tax and which
runs no risk, and which can only fai
when the republic dies, the bond
holder now takes d step forward
: He lays his bond in a vault which
r the government provides for him