The midland journal. (Rising Sun, Md.) 1885-1947, 1895-11-08
The Bankers Gold Basis

Bankers Association, in as much as he
told in straightforward, plain way what
the bankers meant by gold basis finan-
cial system. The money redeemed on
credit in seventy-four cities of the United
States averaged, in the seventeen years,
fifty billions per year, and through the
Clearing Houses "the checks are paid
and debited to the various accounts, and
the differences or settlements between
banks adjusted with about two hundred
millions i'll gold, or two-ffths of one per
cent, thus redeetning on gold basis the
entire volume of fifty billions of money
issued yearly against credit. This is
credit currency and credit redemption OIL
a gold basis"
1t will be observed that very little gold
is wanted by 1.-THE bankers, two-ffths of
one per cent only.
Few of our readers understand what
manner of bank clearing house" is. A
clearing house is bank for the conven-
fence of an association of bankers. Every
day a clerk from each bank repairs to
this clearing house or bank for the asso-
citation. The clerks take with them the
checks they have received of other banks
in the association in the transaction of
business. The checks are all exchanged
and accounts between the banks balanced.
These balances are paid in gold, or rather
in gold checks. The clerk from bank A
exchanges checks with clerk from bank
B. If there shall be a balance i'll favor OF
bank B or vice versa A draws check in
favor. of for the difference, and if the
gold is wanted by bank B messenger is
sent for it. This is the purpose of clear
ing house, and this system of balancing
accounts among the banks of the asso-
citation is what the bankers mean by gold
basis, and this is all the gold they want.
All the balance of their talk about gold
basis is humbug. Two hundred millions
of gold is sufficient to make basis for
fifty thousand millions of bank credit
money. The banks don't propose the
people shall use gold coin as money, only
the banks to keep their balances.
Mr.. Burt continues "To-day the most
eminent authorities demand the retire
ment of the greenbacks and Treasury
notes." These "most eminent author
tiles" are all national bank presidents
and cashiers. Gin time this will be
accomplished, we are assured, "by the
issue of government bonds" No scheme
is complete without the destruction Of
greenbacks and the issue of more gov
eminent bonds. "These same author
titles 1.-THE bankers vii then demand the
retirement of all paper money issued on
silver as basis, and that the bullion be
sold when expedient, the proceeds to be
a fund to retire United States bonds. This
will also be accomplished in time and by
the issue of bonds" Read this paragraph
over carefully and note the highwayman
audacity avowed by this spokesman of
the banker bandits. He continues
''The problem then is to devise cur
rency to take the place of the present |
entire issue of paper money amounting to
about one billion; currency which shall
be national, accepted without question i'll
any part of the United States, and
which shall be redeemed on gold basis"
And now the cat in the meal tub appears.
''In some form it should have the guar
antee of the Government but the redemp-
ton of it should be thrown entirely on
the banks" That is the Government is
to guarantee the currency but the banks
will attend to its redemption, in gold, we
suppose. The people never want gov
eminent money redeemed, but suppose
they did who will guarantee the banks
would do it J
But Mr.. Burt is equal to the emergency
and goes on to describe the process:
IT. The United States to issue credit
notes. The form of the note to be as
follows" 1.-THE italics are ours "The
United States will pay to bearer at any
national bank one dollar in credit.
~. Any national bank to receive on
a deposit of credit notes not
exceeding rs per cent of its assets"
This is sufficient to show the gold basis
financial system as the bankers see it.
The 25 per cent of credit notes to be
guaranteed by the Government and re-
deemable i'll cyedH by the national banks,
is about the amount required for reserve
in the banks to meet depositors checks
The "assets" on which the government
IS TO deliver the credit notes to the bank,
are the promise to pay notes on the banks
to whom it has loaned wind
money. 1t will be seeu that this entire
.,oold basis bank scheme is nothing but
n grand credit plan in which the control
of the finances of the nation is to be
pIaced in the hands of the bankers, who
are to work on the Governments credit
hat is to be placed behind the currency
in order to keep the people quiet. Two
or three hundred millions of gold is TO
run the whole scheme, and the notes or
currency is to be genuine fiat" legal
tender currency, such as the entire gold
bug ring are denouncing. In addition to
this moiety OF currency regulated by
of rs per cent of the assets of
,be hank, and a minimum as small as
The banks choose to make it, silver and
silver certificates are to supply the small
change. No note issued to the banks and
nayable in credit by the Government is to
be less than $40.
The bankers have presented different
i'll detail and more or
less disguised, but the above plan con-
toius the gist of them all. 1t is the most
omen and above board, and shows up
nlainly the bankers gold basis financial |
plan. which the wisdom of the "ablest /
fnanciers" have racked their brains de- |
vising. contains not particle more