The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1896-06-19
|BANKE R AND FARMER
GERRY BROWN MAKES 4
SPLENDID ILLUSTRATION.
How q Rustic Old Hayseed Put a Ma
tional Banker in a Hole-Farmers All
Understand the Great Money Question:,
and Will Vote Accordingly.

Certainly l WILL answered the
banker. 1--WE have a league in New
York whose mission it is to reward or
pay editors to print our ideas on sound
money but go ahead with your ques-
tons"
What is a national banknote, for
which we sell our labor?' asked the
farmer.
"A national bank-note is a promise of
a national bank to pay the amount
named on the face of the note an
swered the banker.
"Pay what-gold?" asked the farmer.
ooh, no; lawful money! answered
the banker.
THAT gives you an option of paying
it in silver. Do you pay out silver?'
asked the farmer.
Mostly silver, silver certificates.
notes of other banks, etc." answered
the banker.
but, Mr.. Banker, if you lave the OPP
ton and pay it in silver, why do you
claim that, if the government has the
option it should pay in gold?'' asked
the farmer.
Because we are on a gold basis; and
II government paid out silver, conf
dence would be affected, and gold would
&c to a premium" said the banker.
Then, If we are on a gold basis" said
the farmer, "why don't you pay your
notes in gold?"
Because" answered the banker, "the
law gives me the privilege of paying
lawful money and we educate the people
who want gold to demand gold of the
government for that lawful money, and
that relieves the banks of the burden of
providing the gold for the gold basis
Then, VIVA we get for our labor is a
paper promise of a bank?" asked the
farmer.
ooh, but it is ~good-good all over the
country" said the banker.
What makes it good" asked a la
borer.
ut is secured by United States
bonds" said the banker. "For every
5000 we issue in our bank notes, we de-
post a S 1 1000 bond in Washington. The
law furnishes us with 5000 in bank
notes for every thousand dollar bono
there deposited.'
"And the bond is the property Of the
bank and the government is responsible
for its safe-keeping, and it's return to
you," asked the farmer.
Eyes" answered the banker.
"You buy a bono with S., 600, and Their
get 5000, that is good currency as that
which you gave for the bond?"
'Ye-yes," hesitated the banker.
"What is a bond?" asked the farmer.
GA honda United States bond?"
asked the banker. why, every one
knows what a United States bond is. 1t
is a promise of all the people that the
holder of the bono shall receive interest
until the bond is matured, and the prin-
cipal named in the bond at maturity"
'Then you draw interest on the
bonG?" asked the laborer.
EYES," said the banker.
"And," continued the farmer, you
get back 5000 out of the 81, 900 you paid
for the bond. Then isn't it true that
you are drawing interest on the full
bond, when, in reality, all that you have
loaned the people is ten per cent of that
bond?"
"That's not the way we state it" said
the banker.
"No," interjected the editor, "you
don't state it in that way, but it is an
exact statement Of the privilege you
enjoy at the expense Of the Wealth-pr
ducers, the bread-winners, the widows
and orphans included. Tell him also
that you are exempt from paying inter-
est on the bond or the notes.
II haven't finished asking questions
said the farmer.
eco on" said the banker, with a
"tired" look at the editor.
II want to ask how you get your
bank-notes into circulation? ?" continued
the farmer.
1--WE discount notes; that is, for in
stance, a retailer who buys goods and
hasn't the money to pay for them gives
his note, his promise to pay at a certain
date. The manufacturer VINO sells him
the goods indorses the note-Writes his
name on the back of it-and then he
brings it to our bank. We deduct the
interest-discount it, and take the dis
count in advance-and the balance W {
loan him, and enter it on the deposit
book of the one for whom we discount
il. When he draws a check we car
give him in payment our bank notes."
Chen" questioned the farmer, "yor
draw interest on the bond at Washing.
ton and interest on the notes OF you1
hank. isn't it double interest for part o: