The progressive farmer. [volume] (Winston, N.C.) 1886-1904, 1895-08-13

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he has to pay the government interest
at the rate of one per cent, as ne o
when he loans the money OF some kind
6epositor. for which he pays nothing.
But Mr.. Gage misrepresented the law
when he inferred that the national
bankers deposit five per OF their
notes with the government to secure
their circulation.
Section 2 of the act of Congress
reads as follows: THAT section 81 of
the national banking act be soamended
that the several associations therein
provided for shall not hereafter be re-
ouired to keep on hand any amount of
money whatever by reaso of the
amount of their respective Calculations
but the moneys required by said circu-
lation to be kept all times on hand shall
be determined by the amount of de-
posits in all respects as provided for in
said section"
Section 8 of the same act provides
that the five per cent. deposited with
the government to redeem circulation
be counted as part of the lawful q
serves of the bank, as provided in sec
ton Q. Therefore, the government
generously permits the national bank
ers' reserve to answer a double purpose,
and the banker is relieved from depos-
itiDg a single cent extra by reason of
his circulating notes,
The reason national bankers do not
issue circulating notes to the full extent
of their privilege is because they want
to make the flesh and blood of the in
dustrial masses very cheap and the
n-ecessaries and comforts Of life very
hard to get. Their interests lie in
maintaining a dependent rather than
an independent people. They laugh
and grow fat on slavery and weep and
die on freedom. Why do national
banks withhold their own notes from
circulation, and at the same time pay
long time depositors from three to four
per cent. per annum for money to loan
to their customers9 Why do they pay
private depositors three or four times
more for the use of money than they
are willing to gay the government for
the use of their own notes, which they
claim the people will acct pit as freely
as any other money, and cannot be
boycottedP Ga the surface this seems
quite a mystery indeed. Toe Chicago
and other bankers account for this ap-
parent unbusinees like method, on the
ground that the bonds are at a high
premium. Yet it is not the low inter
est on the bonds but-their value as a
basis for the circulation Of national
banks that give them the high premium
they now command. If Mr.. Lyman J.
Gage, and other national bankers will
consult the private circulars issued by
Fisk & Hatch, New York bankers, in
1888, they will find that Fisk & Hatch
clearly demonstrated that with bonds
at % per cent. premium, 81, 900, 600 dol
lars invested in national banking
twenty years will retire the premium
on the bonds and pay it's investors &c.,
900 more per Annum than 81, 22O,0 900
will pay invested in private banking
for the same lengtho of time. Therefore,
we will have to look elsewhere for q
CAUSE why national bankers pay higher
interest to time d~epcsieors than they
will pay the government for the use of
national currency. But the aus is
simple, and it is one which the people
have studied very little and the bank
ers very much. The cause is found in
the organic d effort to perpetuate debt.
All the national bankers know that
the profit of money at interest depends
on the ability Ct the loaners to control
the volume in circulation. They know
that money in the hands of the people
is harder to control than money in the
vaults of the banks. They know that
when the people have plenty of money
they pay their debts and stop the bank
ers from reaping where they have not
sown. They know that when money
is scarce the people fl ,ck to the banks
to borrow. They know that their In
terests lie in controlling the volume of
currency and limiting competition in
the money loaning business. And this
is why they reduce their circulating
notes and devote their time to specu-
lating on the money of their depositors.
This is a principle known to the money
changers before Christ scourged them
from the temple. It was this principle
that took the monetary prerogatiVe
from the British crown and transferred
it to the bank of England. 1t was this