The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-05-13
notes into circulation?" continued the

notes INTO clrculalOn! continued the
farmer.
1--WE discount notes: that is, for in
stance. retailer who buys goods and
hasn't the money to pay for them gives
his note, his promise to pay at 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
'ur bank. We deduct the interest-dis-
,unt it, and take the discount N advances
ID the balance we loan him, and enter IL
the deposit-book Of the one for whom
ie discount it. When he draws a check
Re can give him in payment our banks
notes.
Then" questioned the farmer, won
draw interest on the bond at Washington
and interest on the notes of your bank:
isn't it double interest for part of your
money!"
well, we don't state it that way" slowly
answered the banker.
mo-" remarked the editor, 1t Is not
stated that way; they are too busy educat-
ing the people on honest money
ut appears tome" remarked the farmer,
"that bank-notes are promise to pay on
which the bank draws interest The retailer
pays interest on what he owes, and the bank
receives interest on what it owes
udI . CuuCklcu ln0 editor. Inc
bank is living on the interest of what "a
owes. and growing rich at the expense of
the people who vote for the gold-basis that
gives the bank this special privilege. This
enables the banks to educate you up to a
gold basis at your expense They have the
special privilege of furnishing you with
sound money There's so much wind in
it that they can make it sound like bass
drum
Special privilege" exclaimed the bank
er, why, any five men can take advantage
of the National Banking Act. It's no spec
ial privilege"
"Of course they can," replied the editor;
land / wonder that there are so many
tramps doing nothing, when they could have
such an easy job, it, in blocks of five,' they
should associate themselves and organize a
bank. All they need is $4,000 or 100000
capital. Certainly every American citizen
has the chance to run bank. 1t is gooS
business. For instance: The Chemical Ma
tional Bank of New York, capital $500, 900.
Surplus, seven million. Par value of stock,
500; market value, forty-three hundred
forty-three times as much as it's par. No
note circulation. Deposits thirty million,
and It's profit is from the credit based on
about one-quarter this sum. In addition
to the seven million profit represented by
the surplus, its dividends have been one
hundred and fifty per cent per annum; and
n addition to that one hundred per cent is
carried tosurpius Our business comes from
confidence said the president in his testi-
mony"
Dear me-" said the minister, 'I have
listened to all this about national bank
and the money power; and the system
doesn't appear to be just right. It is q
debt based on debt; and we are doing
bushes on the basis of our debts. To
have money we must keep in debt, and
pay interest on the debt forever, that
we may have the evidence of debt with
which to exchange wealth. 1t is interest
on a dollar, and another interest on some
hing not earned, which is based on that
dollar and called national bank credit.
Why, a dollar printed on every fifty
cents worth Of silver, seems to me, is
better dollar than promise to pay a
dollar which has only twenty cents guar
anty in it's possession that we shall finally
promise, If we get anything. More prom
ises to pay than there is money to redeem
the promises! Dear me! The president
of our, national bank has donated the
chapel in which l try to lead men to fear
God; but fear that the money changers
have so burdened them with supporting
themselves and the banking system, that
they do not come to church SO often as
they might if they were emancipated
from this bondage. Mans body is Gods
temple, and the money-changers must be
driven out. / must have a sermon on
this"
You'll get fired if you do,' whispered
a rude voice in the rear Of The room; but
the minister did not hear IT,
*These figures are from the testimony
Of the president of the bank to congress
sional committee, 1894
Continued next weekly