The Caucasian. (Clinton, N.C.) 188?-1913, 1895-08-22
WHAT WAS
And WHAT is.
Only 81, 900, 900, 900 in Existence
But Banks Have &,800,-
600, 900 on Deposit.

100000 on Deposit.
BONDS ARE NOT TAXABLE.
rhs Destructive Methods aas Cont ued--
Despite the Kingisg Alarm Of the United
States Commission--which w.s APP
pointed to Ascertain the Cause Of De-
pression.
Just after the war there was plenty
Of money in circulation. The products
Of labor commanded good prices.
Every man who desired work was
promptly employed. Every enterprise
in q businesslike way was
successful. Our farmers were happy
notwithstanding high tariff taxes.
Our mechanics were contented and
and grand future was
open to all who wOnld labor. If q
farmer wanted few hundred dollars
to add to his hitherto limited comforts,
to embellish his home or to continue
the education of his children, it could
be gotten from his neighbOr at small
rates Of interest. He did not have to
always 60 to the banks who charged
FROM TO IL PER CENT.
There was plenty of money in circu-
latiOn. The demand of loans from
banks were rare, consequently rates OF
discount were high. The banks only
prospered by extOrtion. Bankers be-
held the prosperity of the farmers and
IabOring classes Of America with
dread as to their own future. Plenty
Of money in circulation meant to
bankers contraction of their business
1t meant to them tramping bankers
With an eye to saif-aggrandisement
with no sympathy for the balance OF
mankind,
of efforts secured the passage of the
contracting act of 1856. When this
act was passed there was in circulation
paper money Ono gold or silver
amounting to aoout $2,OOO, 900 600 equa
to about $50 per capita. By this ac1
this money in circulation was gradu.
ally retired, converted into interest.
bearing United States bonds. In thu
interest Of the purchasers of these
bonds they were made non-taxable. A
man may own one million dollars o.
these bonds and
NO STATE, CITY OR CORPORATION
can tax them. European capitalists il
a short time began to invest in thes'
bonds. This money was purchased b!
capitalists with gold. One dollar il
gold could buy from $l.5O to $3.50 il
currency-not that the people feared
its ultimate redemption dollar for dol
lar, but by proceeding act in the in
terest Of those possessing gold, Thu
paper money was deprecated by al
exception clause which read, "a lega
tender for all debts except in payment
of import duties and interest on tn,
public debt" In a comparatively shor1
time this money circulation of $4,000,
600, 900 was cut down to about $500,
100000. Instead of 500 per capita il
fell in the space of ten years from the
passage of the law
TO ABOUT $40 PER CAPITA.
Then commenced an era of bankruptcy
distress, despair and poverty wholly
confined to the farmers and industria
classes such as was never experienced
in any civilized country before. AL
occasioned by the undisturbed contro
granted to bankers and capitalists Of
Europe and America of the flnancia
laws of this country. A mere handful
of meu making laws which have en-.
riched themselves and
ENsLAvED ALMOST ENTIRELY
the yeOmanry and toilers of America
Notwithstanding we have doubled
the population we had in 1865, we have
only One-fifth the amount OF money
actually in circulation" that we had
at that time. In 1898 we were shown
by financial reports that the amount
of deposits in banks of all kinds in the
United States was 81 ,S48, 862, $50, while
it could not be possible (were every
cent accounted for as having been dis.
tributed was in actual circulatiOn) fol
there to be more than $1,6O0,OOO,OOO OF
all kinds of money in circulation. Now
let US for illustration concede that thi.
whole amount was deposited in tn.
banks. This would leave at least So,
300, 100000 more money subject tt
check
THAN THERE IS ACTUALLY EXISTING
in America. In short the ranks OF
America are drawing interest on &c..
800. OOO, 900 more money than actually
exists. 81 900, 100000 in money and
80, 300, 100000 in confidence" Cash
and credits amount to about 81, 900, 600, ;
600. 1t is clear to my mind, therefore
that 81 800 ,OO0, 900 is the normal amount
requisite for the transactions of the
business of the country. Still a PEI
capita of only $50 would magnify pros
perity wonderously.
A shrinkage of money and falling
prices always have had and always
must have tendency to concentrate
wealth to enrich the few and to I'M
pOverish
AND DEGRADE THE MANY.
Stringency in money is strangulation
OF industry and starvation of labor
The United States commission said
"HOwsOever great the natural resources
of country may be. however genial
its climate, fertile its soil, enterprising
and industrious it's inhabitants, if the
volume of money is shrinking and
prices are falling its inhabitants will
be
OVERWHELMED WITH BANKRUPTCY,
its Industries will be paralyzed and
restitution will prevail" Also it said
"A shrinkage in the volume of cur
rency has caused more misery, famine
and pestilence and more injustice thai
all the bad laws ever enacted" This
commission was created IN 1873 by
Congress, to ascertain the cause of gen
eral depression. The alarm was sound
ed then but our rulers still continued
in the work of destruction. Plenty of
money will be the salvation of So per.
cent. Of the people. Abundance of
money will make the people brave
enough to defy bankers and foreign
and resurrect home rule.
G. w. B. II. in Virginia Sun