Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1896-07-16

asked the farmer.
"A national bank note is a promise
of national bank to pay the amount
named on its face" answered the
banker.
PAY what-gold? ?"asked the farmer.
''Oh, no; lawful money! answered
the banker.
That gives you an option to pay in
silver. Do you pay out silveran asked
the farmer.
Mostly silver, silver certificates.
notes of other banks, etc." answered
the banker.
''But, Mr.. Banker. if you have the
option and pay it in silver, why do
you claim that the government, also,
having the option, should pay in gold?r
asked the farmer.
Because we are on a gold basis.
and if the government paid out silver,
confidence would be affected and gold
would go to a premium" said the
banker.
Then if we are on gold basis why
don't you pay your notes in gold7n
asked the farmer
Because" answered the banker,
1.-THE law gives US the privilege of pay
ing in lawful money, and we educate
the people who want gold to demand
gold of the government. and that re-
lieves the banks of the bu7den of pro-
vidfng the gold for the gold basis.''
Then what we get for labor is
paper promise of bank?" asked the
farmer.
''Oh, but it is good, good all over
The world,'' said the banker.
What makes it good?" asked the
farmer.
ut is secured by United States bonds, "
'aid the banker" for every 5000 we
ssue in our bank notes we deposit a
$1,000 bond i'll Washington"
And the bond is yours, but the gov
srnment is responsible to you for its
;afe keeping and return" said the far
ner
"Yes, answered the banker
You buy bond with $1,000 and
hen get 5000 back Just as good money
Is you gave for the bond,'' said the
armer.
''Ye-yes," hesitated the banker.
What is bond2" asked the farmer. |
"A bond-a United States bond, "
;aid the banker. Why every one
Knows what United States bond is.
It is promise of all the people that
he holder of the bond shall receive in
crest until the bond is matured and
principal and interest is fully paid"
Then you draw interest on the
,ond," said the farmer.
s.Yes," said the banker.
And" continued the farmer, ''yo1
yet back 5000 out of the $1,000 you
'aid for the bond. You draw interest
IN the full bond and get back 5000
gain to loan. So you have only
oaned the government ten per cent.
,r $1C0-is that the way it is?"
That is not the way we state it,
aid the banker.
NO" said the farmer, .'that is not
he way you state it, but ii is the exact
privilege you enjoy at the expense of
he wealth producers, the bread win
lers, and the widows and orphans, and
-ou are also exempt from paying in
crest on the bonds or on the notes.
Il haven't finished asking questions
ret" said the farmer.
go on" said the banker with
ired look.
Il want to ask you how you get
-our bank notes into circulation, y said
he farmer
I'VE discount notes; for instance.
he retailer buys goods, hasn't the
money to pay for them and gives his
tote; the manufacturer or iobber who
ellis him the goods, endorses the note,
writes his name across the back of it,
md brings it to our bank. Sometimes
business friend endorses the note.
We deduct the interest, discount it,
md give him the balance. or he leaves
t on deposit. and gives his check, and
We pay out our bank notes on the
heck. =
Then you are drawing interest on
he bond at Washington, and interest
,n:your bank notes; isn't that double
interest for your money?n asked the
armer.
We'll We don't state It that way
aid the banker crustf1y. f
s.No. it is not stated that way. You
re too busy educating the people on
honest money It appears to me-"
ontinued the farmer, that bank
iotes are promise to pay. on which
he bank draws interest. The retailer
Iays interest on what he owes. and
be bank receives interest on what it
we4- This is giving the bankers
cry special privileges. =