The farmers' union. (Memphis, Mo.) 1891-1895, 1895-01-10
Endorsed by Cleveland.


Endorsed by Cleveland.
By the aid Of the Wall Street bank
cres Mr.. Cleveland has evolved bank
ing scheme that, for downright rob
berry OF the people. takes the babrry.
The scheme nf the bank combines,
endorsed by Mr.. Cleveland, is as fol
First, to retire absolutely all gov
eminent paper money except the treas
ury notes OF 1880, and rohably Il
pnrtion Of tho or.cnbackS.
Then confer tie sovereign power to
issue money on bank corporations, un-
der the following Arrangements:
The bank combines are pcrinlttcd to
isa'!c fiat circulating paper money,
equal to - per ccns. Of their paid up
capital. They are then required t.
deposit 80 yer cent. of that amount, III
trcaAu"" notes of 1890, with the Mt
tional .rensur.r. Then they are per
United to circulate the bank notes Is
sued. up to - per cent. of the capital
stock. anh charge any rate of Interest
they please.
a one half OF per cent. tax is to he
paid by the banks, to form IL sinking
fund to help out the banks that fail.
This sinking fund ~ to help the bank
combines, and not ne people the banks
may have robbed Of deposits in their
banks In brief the above is the
scheme. Now. let us start bank I'm
der this law. 1t is true, it is not yet
acted upon by Congress. but, rs Wall
Street favors il, the law will doubtless
pass.
Smith, Jones, Thompson X Co. APP
ply for IL charter to start Il bank.
Their books show that they have Il
paid mp capital stock Of $lOO,Ooo, al
though there may not be a dollor Of
stock paid in. II they say 50, md
their books SO testify, how on
earth is the assertion, to be disputed?
Smith. Jones, Thompson X Co. then
apply to the Government for authority
to issue $4,000 in bank fiat paper
money. T!.c Secretary Of the Treas
ury informs them that they must de
post with INN 80 per cent. OF that
amount III treasury notes rf 1890, or
any other money III circulation will
answer the purpose.
Smith Jones. Thompson X Co. may
have no money, but they have friends
who have. and they call on these
friends to loan them 81. 800 to deposi
with the treasury. This loan need
be only for IL few days, for a, soon as
the bank fra: receives authority from
the Government to ls,!lc $4,000 fiat
bank dollars, they can pay this Dor
rowc,l money and have 80. 500 to start
banking on without it costing them II
cent.
Smith, Jones. Thompson X Co.,
bankers, then open up business. They
loan their money out to the merchants
and farmers ut from II to l., per cent.
Some of the borrowers refuse to pay
such high interest. but Smith, Jones,
Thompson 4 Co. inform their borrow
crs that they cannot get it for less for
there is bank combine. aud they will
find the same rate is charged by all
other banks. They will also tell these
kickers that as tn. banks now have 4
monopoly of the sovereign power to
issue money, there Is no other money
to be had but the bank fiat variety,
and there is nothing left them but
Hohson's choice to take this money
or none.
Finally. Smith. Jones, Thompson Il
Co. conclude to double their power tC
issue fiat paper money. and they IN
form the Government their capitaI
stock is now 100000. There is still
not n cent of paid up stock. but the
evidence of 1T is all straight on the
comp"ny's books.
The Government then gives then
authority to i,suc - per cent. OF tn.
second 500, 900 OF paid up wind. an,
as they now have money OF their own
they can make tn" second deposit ou'
of tn, profits OF the bank. and not
have to borrow.
This gives the firm of smith. Jones
THOMPSON II Go. So. 800 more. or SluJ
600 clear fiat money to do \ banking
business urpu without cent to start
on They then loan this money. an'
in five wears or les, have doubled i. i,
profit They then conclude 10 clos
ont the banking business and retire !,
the suburbs. where they are now abb
to build residences.
The profits Of this little hankin:
firm that only did 4 small business 1t
little country town. can he footed II
As follows:
Profits fer five years --,-.. -.-..---,.... ie'ts
Me-. profit 50 ',tV
These three imrecunlous cusses Q
five years ago divide the plumber. an
have for five yelr> Of toll As banker
So. 900 each clear OF all expenses.
This is the system Of banking tina
Mr.. Cleveland and Mr.. Carlisle ar
urged hv Wall Street to have Coz,
Ercss adept.
We shudier to contemplate the Pre-
tit the bnnklnC combines would rea
from Il million or L half million dollar
OF watere,l stocks.
How tn. Iion,is Are rait For.
The slickss, thing in the world {
finance is the way the bond buyers pa