The Louisiana populist. [volume] (Natchitoches, Natchitoches Parish, La.) 1894-1898, 1896-04-03
THENATIONAL BANKS.
HOW THEY LIVE AND TRIvE ON
THE INTEREST
OF What They Owe-The system Ono OF
the Most Infamous That Was Ever De-
vised for the Purpose of Robbing an I'm
sr.pcctins People. f1flff


Very few people understood at the
time of its passage the national bank
ing act, passed few years before sill
yer was demonetized. Several months
Before its passage, at meeting of
Eastern bankers, held in Boston, the
following letter was formulated and
afterwards sent out TO the various
banking institutions troughout the
country. viz: e
Dear Sir-It is advisable to do all
in your power to sustain such daily and
prominent weekly newspapers, especi-
ally the agricultural and religious press
as will oppose the issuing OF greenback
paper money; and that you withhold
patronage or favors from. all appli-
cants who are not willing to oppose
I the government issuance of money.
Let the government issue the coin and
the banks issue the paper money of the
country; then We can better protect
each other, to repeal the law creating
national banks or restore to circula-
tion the government issue of money,
will be to provide the people with mon
ey, and will therefore seriously affect
your individual profits as banker and
lender. u
"See your member of congress at
once, and engage him to support our
interests, that we may control legisla-
tion.{ tffHL
(Signed by the secretary
JAMES BUELL.,
No. TAT Broadway Groom AZ N. Y" 3
AS q result of this circular letter and
others, the next congress Of the United
States.was filled up with bankers. with
the. determined purpose of passing such
acts as would benefit their own inter-
ests. They occupied seats, notwith-
standing a law in force at that time,
declaring that they were ineligible to
be members of the house. SO -.
The founders Of our government.had
a salutary dread of the bankers influ-
ence making itself felt in shaping ma
tional legislation. therefore the third
congress of the United States passed
the following resolution on the 23rd
day of December, 1898. viz:
ANY person holding any Office or
any stock In any institution in the ma
ture of bank. for issuing or discount
ing bills or notes payable to bearer or
order. cannot. be a member of the
house whilst he holds such Office or
stock" .Ia 3fsi ff ssss.r raxsfa =
This resolution was signed by Presi-
dent George Washington, and was In
full force and effect at the time the ma
tional banking law was passed. In sub
stance the law was this: BY it the
Wall street and English money chang
ers were allowed to invest their green
backs in. government bonds at their
face value Notwithstanding green
backs were then deprecated in value).
Upon the bonds the investor drew gold
/. interest in advance and in addition
thereto he actually had 80 per cent OF
their value returned to him. While he
drew interest upon the investment in
bonds, 80 per cent ofit)was returned to
him in national bank notes, which he
loaned out on the most advantageous
terms.
SO 1t can be seen the investor drew
interest from the government, and all
SO drew interest from his individual
debtors. gs
Let us just see what a banker worth
100000 could do with it under this
law. before the per cent government
bonds went to a premium. With that
amount Of money he could. in thirty
days, have 81, 100000 in bonds drawing
A per cent interest and also have 500, 900
in cash left to loan at the highest rate
of interest to the people. You say 1t
cannot be true Let me prove 1t to you.
He has 100000. buys 100000 OF 4 per
cent bonds, deposits them in the treas
ury and draws $50 900 of national bank
no .es, as he is entitled to by the law.
To this $4,000 he adds SIC. .O00. buys
another 100000 of per cent bonds,
deposits them in the treasury and
draws 10000 in national bank notes
again. 1t is very simple He keeps on
repeating this operation until his cash
is limited to the $4,000 in national
bank notes, which he receives the
eleventh time he takes 500, 900 OF
bonds to the treasury Figure It out
and see II it is not correct, that he had
| 81, ,10o. 900 in bonds and 100000 in cash.
On the bonds he draws $44, 900 q year;
the 800, 900 at 10 per cent earns 50 .000
per year; thus he is making $4,000 per
annunn ON an original d capital OF
$500, 900. Does the reader wonder that
such men as Jay Gould accumulated
fortunes in q few weeks or months?
The national banking law was one
OF tbs most villainous schemes Of rob-
| berry ever practiced upon an innocent
and unsuspecting people. Secretary