Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1898-03-10
A BANKING MONSTER.
WALL STREET AND GAGE ScHEM-
ING TOGETHER.
While the Secretary OF the Treasury Is
Supposed to be the Servant of the PeO.
pie he Is the Servant of the Bond.
holders.

the United States with the government
as their security. The secretaries of
the treasury have acted as attorneys
for the corporations aud have present
ed their claims with unfaiiing regu-
larity." Congress, under the influence
of a powerful lobby, has favored the
banks with much legislation, but the
final conspiracy to destroy the green
backs and let the banks issue notes on
the credit of the government and levy
tVibute ON the people forever has been
sQuelched in every congress. The con-
test, of course, is to be renewed. In
deed, Secretary Gage is asking more
for the banks than was asked by any
Of his predecessors, and the scheme by
which the infamy is to be accomplished
is so adroitly planned and nicely word
ed that the conspirators feel certain of
success. The "best banking system in
the world" landed by jejune journals
and dilapipated politicians, is about to
be remodeled.
The following are some of the things
that Wall street is asking through
Secretary Gage:
First-That an issue and redemption
division be established in which shall
be held a reserve fund of 1925, 900, 900
in gold, besides the money in the regu-
lar treasury.
Second-That the bonds now out
standing and which mature in the
years 1904, 1907 and 1925 be refunded
with bonds that are payable in gold
instead of coin.
Third-That additional gold bonds
be issued to the amount of 5000, 900, 900
for the purpose of redeeming green
backs, silver certificates and treasury
notes; that the tax on bank circulation
be reduced so per cent, and that the
banks shall be allowed to issue notes
the full face of their bonds.
Fourth-That banks may issue addi-
tional notes to the amount of 25 per
cent of their bonds, (which said 25 per
cent may be unsecured by any direct
pledge of security, but issued against
the assets of the bank" tax of Q per
cent being levied on unsecured circu-
lation.
All other money being made redeem
able in gold, this reserve fund of $195,-
900, 600 would be used to redeem silver
or whatever might be presented. The
gold would have to be replenished
from time to time by issuing more
bonds.
The secretary urges in defense of the
second recommendation that the word
"coin" is ambiguous. The great finan-
ciers know that coins means gold. But,
according to Mr.. Gage, the simpler
and more humble investors" are in
doubt, land the public credit is the
weaker therefor" 1t is remarka BILE
that the makers of the dictionaries
have not noticed that '"coin" is word
of doubtful meaning.
Knowing that there is a strong feel
ing among the people against retiring
the greenbacks, Mr.. Gage says that
they are not to be destroyed or even
retired, but simply redeemed and held
in the treasury and given out again for
gold if any one offers gold for them.
He contends further that this is not
the same as cancellng them. Little
reflection is necessary, however, to see
that this process is exactly and abso-
lutely the same as burning the green
backs, for when the greenback is again
given out for gold it simply becomes
u gold certificate, and had it not been
given out certificate would have talk
en- its place If they are to be used as
gold certificates, why not make them
over, or what would be more conven-
lent, why not burn them and make
gold certificates out of other paper?
This would not deceive the public.
The recommendation to allow banks
to issue notes for 95 per cent more than
their bonds caps the climax Of audaci-
ty, and the tax, it will be remembered,
is to be decreased. If tine new bonds
are used as basis for circulation and
if no banks issue more notes than the
face of their bonds, the loss in tax TO
the government will be sl,0OO,OOO a
year. The banks now organized would
add $50. ron, 900 to their circulation If
they issue to par Of bonds, or $40, OOO,-
900 if they issue all they can, without
adding anything to their capital.
Who will be benefited by this gigan-
tic swindle that will add 100000, 900
to our interest bearing debit The
banks. Nee the small banks, but the
great corporations The bonds would
be taken in day by the Wall street
gamblers, and the small banker, if he
wants bonds, must paya premium of
about 20 per cent
Mr.. Cages scheme, taken as a whole,