The herald., 1897-10-18
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The Rothschilds manipulated, at will,
the money of Europe, and possess more
power than any king or emperor of the
old country.
Recently a movement has been started
to establish government savings banks
That is a forward step. This "honest
money scheme" of Gage is clearly in
tended to sidetrack the postal savings
banks proposition. Now l have no
prejudice against bankers as individ-
uals,. but do object to the turning over
to private parties of the power to m anip-
ulate the money of this great country. I
do protest against the proposition of Mr..
Gage to destroy all the greenbacks and
allow the banks the dangerous power to
contract or expand our volume of money
as their selfish interests might dictate.
AS the national banking system now ex-
lists banks invest 100000 in government
bonds bearing interest; they then have
issued to them SOC, 900 in bank notes,
which they loan out. They are thus en-
abled to receive two interests on the
same investment. They harvest two
crops where they plant but one.
Banker Gage wants things still more
favorable for the banks; he asks that the
invest 100000 and then receive interest
on. 5000, 600 instead of but $3.50, 900 as now
and reduce their rate Of taxation. If Mr.
Gage can secure this change in the law
he will enable the banker to reap crop
of interest considerably larger than
heretofore, besides will fasten upon the
country the single GOLD standard system
and permane rstH idemenetize silver as
primary money! His whole plan is per
nicious and fraught with the greatest
danger to the country. When England
adopted the single gold standard there
were 900 land owners in Great Brit
ain. That financial ma chine in one gen.
Grafton took from the small farmers and
middle classes their homes to the num-
ber of III ,000 and forty-three rich land
barons owned all the land in the realm
Mr.. Cages "honest money" scheme will,
if adhered to long enough, bring similar
| results in America. Our banking sys-
tenn is so adroitly planned that the banks
have been enabled to get the people of
this country in debt to them to the
amount of more than three times the
entire volume of money in circulation in
| the United States, and though they owe
the depositors a still greater sum, yet
they reap rich harvest in conducting
the business without loaning any of
| their own money. They loan to one set
of our people the money belonging to
| another class 1t is fine business in
| times of prosperity and confidence, but
| the system goes to seed in periodical
| bank parics and suspensions in which
millions of dollars are lost by the people.
Yet this system is called "the best bank
ing system in the world" while every
well-informed person knows that it fur
nishes no security whatever to the de-
positors and that the banks do, as claim
ed by bankers themselves, rest solely or
the confidence of the people. Let a
breath of suspicion or word of criticism
be cast on bank and it's very existence
is endangered Clearly that cannot be
a stable banking system which depends
upon the whims of capricious public
for it's stability. Surely the foundation
is not very solid if the banks can be
plunged into bankruptcy and ruin by
the tattling tongue of some street loafer
or the gabbing of some garrulous ole
lady.
Let this "honest money scheme" of
Secretary Gage be promptly squelche
by the people, and the postal savings
bank proposed by the Chicago Record
and Postmaster General Gary be adopt
ed by the next congress. Let bimetal-
lism be restored. Let the government be
authorized to issue all the money of the
country. Let law be enacted taxing
national banks say 1 per cent on their
average deposits, the funds thus raised
to go nto sinking fund out of which
depositors in suspended banks shall be
paid to the full amount Of their deposits
in such banks at the time of their sus-
pension
If these suggestions were carried out
there would be no hiding away in old
stockings millions of dollars, and runs
on banks and bank panics would be at
an end. r. A. DAGUE.
Santa Paula, Cal, Oct 13, 1897