The herald., 1896-10-16

fectly safe course. The near prospect
of the authorization of free coinage
counting of heads showing the GER
tainty of a two thirds vote in the house
and senate for 16 to would evoke in
Wall street the kind of conditions that
no congress has ever yet dared to dis
regard, and the cause of free coinage
would be oYerthrown at the moment
when it's success seemed most certain.
1t is this reserved power on which Wall
street is now repOSing."
Every American citizen who believes
in free government should read those
utteranceS and ponder well their sig
nificance. In brief, they mean that even
though two-thirds of the American peo-
pie should be In favor of restoring sill
ity in congress so pledged, still Wall
street would prevent it by evoking
conditions that no congress has ever
dared disregard.
1t is in effect a declaration that
Wall street is more powerful than the
American people, and that no policy
which the great money power center op-
poses shall be enacted into law.
A man who would use such language
as is contained in Mr.. Clews' circular
is not a loyal citizen of the republic. and
is not fit to be a citizen at all, and is
far more entitled to be called an AN
archist" than those to whom this name
is most often lately applied.
Now, l will tell the people why. the
bankers want the government to issue
bonds and how it is to their interests.
In forming a national bank with $780,
900 they buy $4,000 worth of govern
ment bonds. the other $1,000 having to be
paid as premium to the government,
and ty depositing these bonds in the
treasury the government will give the
banker $780, 900 worth of bank notes, the
$4,000 remaining being held by the gov
L..
curity. The government pays the bank
4 per cent interest on the $4,000 worth
of bonds deposited, and the $50, 900 they
give the bank can be loaned out by them
on mortgages, notes, etc, at Z per cent
net interest. giving the bank 1-3 per
cent interest .-ono on the whole. after de-
Quoting the $1,000 loss paid by them as
premium, this interest in total then
amounting to $9320.
This is not bad at first sight, although
it is very high rate of interest for the
banks to get. but If you will stop to
study 1t moment you will see where the
little joker comes in and why the banks
naturally favor the government issue
of bonds and bank currency. In point of
fact. they are receiving per cent in
terest on $4,000 and per cent interest
on $4,000 more, when in truth all the
money they have invested in the tran
sactiOn is 100000 and not $173, 900, and
while they are drawing interest on $685.
600 from the government they have only
made a real investment of $50, 900, and
the per cent really means 20 per cent,
for they have received $50 900 back from
the government out of the $100 900 they
have paid for the bonds to invest else
where, and it should be remembered
that there is still $13, 900 due them that
the government holds as security and
it makes it most profitable investment
for them
While it is good for the banker It is
bad thing for the people, for they are
taxed to pay the or 20 per cent, which
ever you choose to call it, that the bank
first receives. and then the borrower
has to pay the other Z per cent on his
loan to them.
Now, do not say this with view of
exciting any rancor against any of the
bankers. and l believe them as class
to be as fine set of men as we have
in our country. but, like everyone else,
they are anxious to make all they can
and naturally favor that which is most
favorable to them. The fault does not
lie with them, but with our laws. and
this is what the people should see is
corrected. and why they should not fol-
low in the footsteps of the bankers on
this matter. Combined with other
Things that are wrong in our laws. the
thing l wonder at is that the govern
ment has been able to meet it's expenses
have now given my authorities and
l think that our present conditions and
the actions of the bankers throughout
I the United States is full and satisfacto-
ry proof that such letters must have
been issued. for they are most certainly
following out and favoring the very
things advised in the said letters and
our conditions prove this. The panic
of 1893 came like thunder clap on the
country. without any apparent cause
beforehand except that explained above.
If these statements are still denied.
let the people have the authority of
those that deny them. Something more
than the word of few persons is need
ed I think I can furnish even more
proof than have mentioned but I have
no desire to injure the bankers or their
business in any way whatsoever. and
! would heartily hope personally that
the above could be disproved, but do
not believe it can be from the result of
my Investigations up to the present
time. Yours truly.
r PLURIBUS UNUM.
Los Angeles Oct. 14th.
Bryan is the youngest man who ever
ran for president Of the United States
but Palmer at 70 ia not the oldest