Natchitoches populist., 1898-08-19
UNHEEDE,D PROTEST..
A LETTER AGAINST THE RE-
CENT BOND ISSUE.
Some New Points That Are Often Over.
looked by Students of the Great
Financial Issaa'-Whess Money Do the
Bankers buy Bonds with?

NASSSSN W shO ~ lOoAStChS w H1i OAAe@A A>S
E. Jones, of Chicago, A copy was also
sent to each representative In congress.
1t is as follows:
in the Chicago Tribune Of May Is
is an article which states that tie cons
troller Of the currency, Charles G.
Dawes, was sent by the president to
meet the bankers and reassure them
than an issue of $2OO,OOO,0OO of 8 per
cent bonds would take place regardless
of the opposition Of the Democrats and
Populists, and that, as result OF this
reinsurance, large orders for plates were
placed with the controller, and that
the bureau OF printing aid engraving
are working night and day to get the
plates ready, that the circulation which
will be required on the S2OO,OOO,OOO
bonds will be Forthcoming at the proper
time Do you fully realize what this
bond issue means to the American peo-
pie? When l ray American people,
mean the masses. | ask again, do you
fully understand what the result of this
bond issue will mean to the masses
of the citizens and voters whose votes
placed you in the position You occupy?
If you can fully realize the result, you
are committing an objectionable crime
against the people If you permit these
bonds to be issued and then issue cir
culation on these bonds to the extent
OF 80 per cent OF the represented value
| OF the bonds .As | understand 1t this
bond issue Is to be for $2OO,OOO,OOO; the
circulation would be $4,000 $1,000. Now,
if the bankers bring $500, 900, 900 and get
$500, 100000 bonds and s1S0, 0,000, 900 cash,
how much have the bonds cost the
bankers? | can see but S20,000,O00
invested by the bankers and liabilities
created to the extent OF 5000, 900,
and also that the people to get the use
of the $18O,000,0 Zoo will be compelled to
pay the bankers interest at such rates
as they shall DE able to contract for
when the people may need any part Of
this $1S0,000,00O to transact business
with; adding this $3.50, 100000 to the
$500, 900. 900 the people will be compelled
to pay interest on $3.50, 600, 900 for only
$40, 100000 received. II such trans
action is not legalized robbery, then I
4 would like you to define to me what le-
galized robbery is. would like to
carry out the problem little further
for your information. Now, let the
whole amount Of bonds as recommend.
ed by the popular branch of congress be
issued, in say three lots, two lots of
s2O0.000,000. What would be the result
of the transaction? AS have demon
strated above, the first transaction will
give to the bankers $3S0,O00.00O of In
terest-bearing paper, 10000 bonds
and $1S0,0O0,00) national bank notes
for which they actually paid $20,000,O00.
Now, take a second transaction of
$200,000,000 and see the result. By the
time the government shall apparently
need the cash that would justify a
bond issue, a great part of the money
received in the first transaction will be
in the hands ol the bankers; and now
issue the bonds, the bankers can come
again and take the $2O0,0O0,0O bonds,
pay the $500, ,00O, 900 cash and take the
bonds and $1S0,000,OO0 in cash, making
the actual cost of the bonds to the
banker but 20,O00,00O, but the people
are again put under obligations to the
bankers to the extent of $3.50 600, 600
S2O0,0O0,000 bonded obligations and
$1S0,000,000 on which they must pay in.
terest to the bankers to get the privi.
lege of using the money which the peo
ple, through their representatives, gave
the bankers Add this transaction to thu
first and you have the stupendous sun
of $76O000 900. which cost the banker.
apparently s4G00O,OOO. Now, take thu
500, 100000 of bonds that remain t
complete the amount recommended By
the popular branch OF congress, an(
treat them in the same way and thu
result is that the banker will holi
bonds against the people to the amoun
Of 00,0OO,000 and loanable and mos
desirable paper to the amount of s45O,.
100000; this added to the $500, 900 ,0Gl
Of bonds amounts to the neat littl,
sum of ss50,000,0OO, costing the banker
| apparently the small sum of $50 600 600
| What do you think of such villainou.
! transaction as this appears to be? Tt
compel the people to pay 8 per cent OF
! $500, 100000 bonds and then to comue
them to pay to the bankers the rate d
| interest they mily demand for the privi
| lege of using the $450, ,Oe0 that tn,
people themselves, through their rep
resentatives, gave to the bankers! TIL,
people are ignorant of these facts, bu
can you say the same Of the representa-
! tives? If the representative is igno
rant OF these facts he has no right t.
attempt to represent the people; If h,
is not ignorant of these facts then hs
must be a villainous, designing traitor
to the people and to the free institu
| tions OF America. Nor is this all there
is to these financial transactions. Thi.
money that is printed at the bureau q
engraving and printing is paper, and ii
Igiyen to the bankers to circulat.