The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1895-08-13
BANKERS ON rHR DEFENSIVE.
President Lyman ]. Gage Says the Boy
colt Won't Hurt the National Banks
Much, But He Talks As If He
Thought It Might--An Ex-
posure of The Methods Of
The Shylocks

IL M1gnC"-Au G4
posure of The Methods of
The ShYlocks
Correspondence Of the Progressive Farmer.
The effect of the boycott on the notes
of national banks, published in last
weeks issue of the Journal, has become
a subject of national comment. The
hired organs of the Sound money
clubs and the ~plutocrats are now
squirming like caterpillars on a hot
griddle. Some national banker try to
laugh the boycott away; others say
that I am Insane, and others say that
/ am hearless and cruel for attempting
to contract the currency at a time
when money is so scarce and wages so
low. And then, like a condemned
murderer who relies on the Governor
for a pardon, they console themselves
with the thought that the people whom
they have outraged will not permit
them to be hanged. Yet in all their
interviews on the question can be dis
cerned the same nervous twitch, the
same CLASSY eyes, and the same longing
far-awaY look that always marx the
-pearanc of the criminal just before
execution. The sin soaked souls or n
national bankers r not accustomed
TO rapid transit. Last week they were
devoting their time in trying to make
the people believe that our silver dollar
is a dishonest fifty cent dollar. This
week they are devoting their time de
Tending and excusing the worthless no.
cent dollars of their own and they dis
like such rapid changes.
United States Treasury officials stated
to the press that the boycott, if carried
out, will ipjuIe labor and not the
banks, because it will decrease the Cir
culating medium $211, 600, 900. Last
year the same officials were telling the
people that the country contained more
circulating medium than vas neces
sary, that what the country needed
was confidence and credit. Now they
are affirming that the volume Of cur
rency in circulation regulates wages
and prizes, and therefore the boycott
will reduce wages becaus9it will reduce
the volume of circulating medium-an
admission which they would never be
fore make.
The Chicago bankers were interview
ed by reporters, and the corporation
dailies devoted from two to four col
umns each, explaining that the bankers
cared nothing for the proposed boycott
''This is the raving of alunatic, p" said
President J. j. P. Odell, of the Union
National bank, when he had read the
published account of the Sovereign pro
nunciamento. 1T is foolish in the ex-
treme and disproves itself. The n
tional banks of the country have the
privilege of issuing about $3.50, 600, 600
in circulation notes, but 30 little do
they care about this privilege, and so
little do they exercise it that the total
amount of national bank notes in cir
cuIation October 2 1894, was less than
$172, 900. 900. If issuing notes we're
profitable, it is likely that the banks
would avail themselves of their priv
lege to a greater extent than this. Thus
falls the charge that the national banks
are trying to foist on the country a
fiat currency.
1.-THE First National bank of Chicago
has the privilege of issuing $4,000, 600
of notes. 1t has not a dollar in circu-
lation. The Union National bank has
the right to issue 81, 900, 900 worth of
notes, and we have only &24, 600 out.
That shows how much the note-issuing
power is thought of by the banks"
THAT manifesto is all buncombe and
is not worthy of serious attention, "
eaid President John Mitchell, of the
Illinois Trust and Savings bank. But
very few people would act according
to it and the amount of notes these
would refuse to accept would make no
perceptible difference to either the
banks or the currency. National bank
notes are not full legal tender between
individuals, but the people have always
accepted them and will continue to do
so. This manifesto is unfortunate, be
cause it tends K breed antagonism be-
tween capital and labor, where there
should be only harmony"
'Mr. Sovereign might as we'll try to
bail out Lake Michigan as to ID what
he proposes in his manifesto" said
Charles L Huschingon, President of
the Corn Exchange bank. The ma,
tional banking system and the high
character of the national bank notes as
currency are too we'll established to be
assailed effectively by so weak a meth