Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1896-06-12


pay editors to print our ideas on Sound
money; but 60 ahead with your ques-
tons"
What is a national banknote, for
which we sell our labor?" asked the
farmer
"A national bank-note is promise OF
a national bank to pay the amount
named on the face of the note.' an
cred the banker.
PAY what-gold?" asked the farmer
ooh, no; lawful money" answered
the banker.
THAT gives you an option of paying
it in silver. Do you pay out silver"
asked the farmer.
mostly silver silver certificates.
notes of other banks, etc." answered
the banker.
"But, Mr.. Banker, if you have the OPP
tion and pay it in silver, why do you
claim that, if the government has the
option it should pay in gold?" asked
the farmer.
Because we are on gold basis; and
il government paid out silver, conf
dence would be affected, and gold would
60 to premium" said the banker.
"Then, If we are on gold basis" said
the farmer, why don't you pay your
notes in gold?"
Because" answered the banker, "the
law gives me the privilege of paying
lawful money and we educate the people
who want gold to demand gold of the
government for that lawful money, and
that relieves the banks of the burden of
providing the gold for the gold basis"
Then, what we get for our labor is
paper promise of bank?" asked the
farmer.
"Oh, but it is good-good all over the
country" said the banker.
What makes it good" asked la
borer.
ut is secured by United States
bonds" said the banker. For every
5000 we issue in our bank notes, we de-
post $1,000 bond in Washington. The
law furnishes us with 5000 in bank
notes for every thousand dollar bond
there deposited"
And the bond is the property Of the
bank and the government Is responsible
for its safe-keeping, and it's return to
you," asked the farmer.
"Yes," answered the banker.
"You buy bond with 81 900, and then
get 5000, that is good currency as that
HI fNr
"Ye-yes," hesitated the banker.
what is bond?" asked the farmer.
"a honda United States bond?"
asked the banker why, every one
knows what United States bond is. 1t
is promise of all the people that the
holder of the bond shall receive interest
until the bond is matured, and the prin-
cipal named in the bond at maturity"
Then you draw interest on the
bond?" asked the laborer.
"Yes," said the banker.
"And," continued the farmer, "you
get back 5000 out of the $1,000 you paid
for the bond. Then isn't 1t true that
you are drawing interest on the full
bond, when, in reality, all that you have
loaned the people is ten per cent of that
bond?"
THAT'S not the way we state it," said
the banker.
NO." interjected the editor, you
don't state 1t in that way, but it is an
exact statement Of the privilege you
enjoy at the expense of the wealth pro-
ducers, the winners, the widows
and orphans included. Tell him also
that you are exempt from paying inter-
est on the bond or the notes."
81 haven't finished asking questions"
said the farmer.
GO on" said the banker, with
tired look at the editor.
II want to ask how you get your
bank-notes into circulation" 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 who sells him
the goods Endorses the note-writes his
name on the back of it-and then ne
brings it to our bank. We deduct the
interest-discount it, and take the dis
count in advance-and the balance we
loan him, and enter it on the deposit
book of the one for whom we discount
It. When he draws a check we can |
give him in payment our bank notes."
"Then," questioned the farmer you
draw interest on the bond at Washing
ton 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
No." remarked the editor, cit is not
stated that way; they are too busy edu-
eating the people on honest money"
1T appears to me-" remarked the far
mer, that bank-notes are a promise
to pay on which the bank draws inter-
sst. The retailer pays interest on what
he owes, and the bank receives interest
IN what it owes"
That's it," chuckled the editor. "The
bank is living on the interest of what
It owes, and growing rich at the ex-
}ense of the people who vote for the
yold-basis that gives the bank this spe-
,iaI privilege This enables the hanks |