The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-02-14
SEVEN FINhNGIhL CONSTITUENCIES.
Which Have Enslaved the American People.
Published by Permission of the Author,
Mrs. S. E. V. Emery.
CHAPTER Ill.
NATIONAL BANKING SYSTEM

people was the national bank act,
passed in 1863. OF all the villainous
schemes of robbery ever practiced on
any people our national banking sys.
tenn stands prominent. BY it Shy
lock was permitted to invest his
greenbacks in government bonds at
face value; upon these bonds he not
only drew gold interest in advance;
but by means of the bank scheme he
actually had 80 per cent of their value
returned to him. While drawing in.
terest upon the entire investment in
the form of bonds, 80 per cent of it
has been returned to him in the
form of national bank notes; and it is
with these he carries on his banking
business, lOaning them out upon the
most advantageous terms. On the
one hand he draws interest from the
government; on the other, from the
same Investment he draws interest from
his individual debtors.
For instance, you borrow 500 from
your national banker, he graciously
loans it to you at ten per cent in ad-
vance, which actually leaves you but
800. With this 800 you supply your
family with food and clothing, upon
a large part of which, as we have al
ready shown, you pay an import duty,
this import duty, please remember,
went into the treasury and from
thence paid interest on the same
bankers bonds. Now is it not clear
that your banker has been paid two
interests upon the same money, one
directly upon the bank notes, pre-
sented to him by the government,
which he loaned to you at ten per
cent interest, the other indirectly as
interest on his bonds, which was paid
with the import duty that had been
added to the price of your goods?
Now it is not for me to condemn in
dividuals for taking advantage Of
this Infamous law, but we do in most
unqualified terms, denounce such a
system of public robbery. None but
the wealthy classes are able to enter
upon this profitable banking bust
ness. If it is proper for the govern
ment to make the business
of the wealthy thus lucrative, is it
not equally just to give like advan-
tages to the poorer classes?
A wise government will look to the
interests of it's wealth producers who
constitute the great toiling masses,
and a just government would make
the way to prosperity as easy for it's
hum blest as for it's most wealthy citi-
zen. If this system is good for bank
ing it ought to be good for every 9th
er legitimate enterprise, and every
other law-abiding citizen is entitled
to like consideration.
Let us see how this system would
affect that great industrial class, the
farmer. To illustrate: Mr.. Jones is
a farmer in easy circumstances; the
markets are favorable and he con-
= C1uuCS w SUI lid WIIOdU 0IOp. dNIOlu
ingly he hauls 1000 bushels to mar
ket: having no immediate use for the
money, he agrees with the buyer to
sell at 81 per bushel and take in pay
ment his $1,000 note. 1t is long
time note, fully secured, bears good
rate of interest, payable in gold semi
annually in advance. Mr.. Jones be-
ing we'll secured, feels that he has
made good exchange, in place of
property idle and subject to loss in
his granary, it is now safe and yield
ing him a handsome income. He is
congratulating himself upon his
ability as a financier, when he is &C
costed by the dealer, who informs him
that he-the dealer-has on hand an
other variety of wheat, equally good
as that he had just purchased, and
since he had found Mr.. Jones a keen,
thrifty business man, he would pre-
sent him with 900 bushels of it. The
only expense to Mr.. Jones would be
the cost of handling, which would be
one per cent of the value of the
wheat, or 49, The wheat should be
taken to Mr.. Jones granary, where
he could loan it to his neighbors up
on the most advantageous terms.
Nothing would be required of him
for twenty years; at the end of that
time, unless they could enter into a
new contract, it would be necessary
for him to return the 900 bushels of
wheat: nothing would be required of
him for the use of it, although by
judiciOusly loaning to his neighbOrs
twenty fold had been returned tC
him
Words could scarcely express the
surprise of Mr.. Jones upon hearing
this irrational proposition. We may
imagine him taking the 81 900 note
from his pocket. and scrutinizing il
with the gravest suspicious, or in
: specting the shining gold pieces-his
| advance intereSt-tO satisfy himself