The Leon reporter. (Leon, Iowa) 1887-1930, 1900-08-09
4 Gold standard

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What is a gold standard and what is
meant by the gold standard is ques
ton often asked but seldom correctly
answered by those who favor the single
gold standard.
Under the present law gold is the
only money that will pay bonded
debt-principal and interest Private
debts can be paid in silver or govern
ment notes unless otherwise specified in
the contract but bond holders must be
paid in gold.
4 Now will soon goldlte please tell why
a bond holder should be paid in gold
and not be taxed on his bonds or in
terest while the soldier is paid in ma
tional bank notes or what the .goldite
calls 5O-cent silver dollar as they claim
the silver in dollar is only worth fifty
cents. 1t is a dishonest dollar and
ought to haye 100 cents worth of silver
in it to make it worth dollar SO that
every dollar we have will be as good as
a gold dollar.
Now if that theory is correct, (Which /
don't admit let us see whether a ma
tional bank note is an honest dollar.
AS all national banks pay their notes
out as money but no one is under any
obligations to take bank note in pay.
ment of debt, the banks are using a
"promise to pay" instead of dol.
lar.
How does the bank get that "promise
to pay?" Who did they get it from?
What did they give in exchange for the
national bank currency?
Answer to the first question:
They get it from the comptroller of
the currency and is issued by him to the
banks as loan for twenty years at one
half of one per cent. per annum. No
other class of man can get single dol
lar of currency that way. And what
does the banker do with that bank cur
rency?
Answer to second question::
They loan it to the people as money
at 10 per cent. on 80 to 80 days time and
take the interest in advance, leaving
the banker at least9 per cent. profit
every three months.
Are not the bankers special privilege
ed class of monied men? Why should
men who are we'll to do be allowed to
use the peoples credit for their special
benefit and do it with currency that
they get for one.half of one per cent.
per annum for twenty years?
That money loaned three times year
will be ~ per cent. and that is not all
they make. All deposits they can loan
out again and don't pay any interest on
deposits unless left twelve months
which would pay all expenses and
leave them net profit on their nation
al bank notes of at least twenty-five
per cent. and four per cent. on the
bonds exempt from taxation on princi-
pal and interest making it thirty per
cent. on the amount invested.
Il Now let us look at this bankers
"prsmise to pay" and see if he does pay.
He has $25. 600 and invests it in govern.
ment bonds and then takes those bonds
to the comptroller of the currency at
Washington, D. G. and says to the
comptroller that he wishes to go into
the banking business and will deposit
those bonds with him and wants $685..
600 in national bank currency. CAN
right, Mr.. Banker, let me see your
bonds? Yes, they are four per cent.
due in twenty years, interest in gold
payable semi-annually."
/ He gets his $4,000 of "promise to
pay" in national bank currency to loan
to the people at whatever per cent. they
can get out of the business men of the
place where he establishes his bank and
goes into business.
At the end of 20 years he has taken
in interest at 10 per cent. for twenty
years:
Simple interest $5O, 900
Paid on circul alton ..... $500
Balance on loans........ ...............$ 47 500
Interest on bond .. 10000
Total interest ...... - .$67 500
Amount paid for bonds . 81, 900
Total assets at the close of TWEEN
ty years ......... 10000. $685.. ....$ 92 800
Now will some business man please
tell the "dear people" how much the
bankers have paid the people for the
national bank currency over and above
the one-half of one per cent. The bank
ers have been exempt from all taxation
A., = u