Dakota farmers' leader. (Canton, S.D.) 1890-19??, 1896-02-28

only amounts to 100000 in gold, silver
and paper, all told.
n,,r;nr tho foil and winter m0nthS

During the fall and winter months,
this people requires about 100000 to
carry exchange, convert and distribute
its 81, 100000 worth of products. This
$500, 900 IS essentiel to do the business of
this state and since there is only $50, 900
in money, the other S27O, 900 must be
supplied by checks and drafts. These
checks and drafts are all issued by one
man who keeps bank and controls all
the capital He does not buy produce;
but only lends his money upon satisfac-
tcry security AT whatever interest he can
get. Sometimes he colludes with specu-
lators and consumers to lower the price of
these products so that u certain sum Of
money will buy more of these products
He does this by boarding in his bank as
much Of the 100000 of gold, silver and
paper, as he can get and then refuses to
pay it out or issue his check, and gives as
his excuse that the money market is very
stringenJ. As this money and check book
are his own property, there is no way Of
getting it till he Is ready to lend it. And
SO this power to issue money, which
belongs to the people and IS a Constltu-
,Nonal function Of its government is dele
gated to an individual for his own ill.,
stead of the public profit.
Some people say that this is not true Of
the banker because he gets his living by
lending his money and that he is only too
glad to get chance to lend it and that it
would be against his interest to lock it
up.
Nobody contends for moment that the
banker would do anything against his
own interest or that he would hoard if he
could make more by lending. But the
well known fact that he does hoard it is
conclusive evidence that he makes more
in that way.
1t happeGs, too, that the most OF these
people owe debts and their property and
products.ase mortgaged and these debts
and their interest and taxes come due
about the same time in the year and they
are liable to have their property sold at 3
sacrifice. $50 they hurry around TO bor-
row monev at a high rate Of interest or
force the sale of their products upon an
unwilling market ut time when there is
no money to buy. when the produce gluts
the market and sells at a low price and
when the railroads are crowded and there
are no facilities for handling and ship
ping.
And now between this boarding Of
money, the>scarcity of a medium of ex-
change. the exorbltant rates of railroads,
the insufficient facilities of storing and
handling, the high rates of interest, the
glut in the local market and the maturity
Of their debts and taxes, these people
have become poorer until they are begin
ming to inquire if there is a remedy for
these evils; and the most Of these people
belong to arace that have never yet and
will not tsmely yield to oppression.
Like that other people spoken OF in
history, when driven at length to the
verge of the ocean. hunted to their last
asylum and ibaited into u mood when men
may be destroyed but never subdued. the
imperial race turned desperately to bay.
FurtherMore, this little state is in debt.
1t owes $32, 600. 1t has issued its bonds
bearing per cent. interest and made an
arrangement with its one rich capitalist
that if he will take the bonds, it will pay
him per ceat. per annum for his money
and they will issue to him $27. 600 in bank
notes which the state will print and guar
antee the payment Of and he can lend it
back to the people at ~ per cent. per
annum; so that for his S32, 900 he gets
81 $50 interest from the state and l2 per
cent. for 1000 of bank notes and his
money just pays him 16 per cent. interest.
The state gets nothing. the people are
taxed TO pay the 4 per cent. interest on
the bonds and they have the privilege of
borrowing their own money back again
from the banker at l2 per cent. interest. |
Now these people think they have dis
covered a way to save taxes and interest. |
Instead Of lending it to the banker for
nothing, they propose to lend it directly
to the people themselves at 2 per cent.
and get revenue of 5000 per annum to
help pay expenses instead of paying l6
per cent. for the use of their own money.
The money that the state issues would
De better than the present money because
The latter is only based on the credit of
The government, while the other would
lave not only this same credit, but it
would be backed by real and personal
security worth three times the amount of
money issued. The people would be bene-
tied because they would get money at
he time when they needed it and in
Luantity adequate to make exchanges
They would pay 2 per cent. instead of 1G
'er cent and the 2 per cent. would pay
'att of their taxes instead of going into
he private vaults of one rich man and
uiding him II palace while the other
eople live in shanties.
The last proposition is part of what
$ called the sub-treasury plan and I