The representative. [volume] (St. Paul, Minn.) 1893-1901, 1900-02-15

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be better thans the treasury note itself!
Is there anyrother explanation to the
"hocus pocus'a arrangement by which
the United States sells its bonds to
bankers, and, upon deposit of those
bonds as secuAity,s and without change
OF ownership,Y returns to the bank
er 30 per centa0f the face of the bonds
In national bank bills at cost to the
banker of onethalf Of one per cent;
these bank bills to be. loaned to the
people by the bankers upon, high rates
OF interest; except that all this special
legislation is q scheme to tax the people
for the bankers benefit?
Would any probate court allow the
trustee or executor of an estate to mort
gage property of the estate to pay an
nual interest on said mortgage and from
the avails of the mortgage return 80
per cent to the owner Of the mortgage
on receiving good security that the
value SO returned go per cent? would
ultimately be- repaid to the estate with
out interest?
Why is it that the ruling powers of
the civilized world demand that paper
money shall not be an obligation of the
| government receivable for all dues and
taxes, and shall not be legal tender for
the payment of all debts public. and
private?
These questions can be answered in a
few words, and in terms so plain that
! the wayfaring man, though a fool, need
not err therein.
THE MYSTERY OF BANKING.
Read national bank BILL or the
bank bill of any other kind of bank, and
whit is it?
| THE ........ Bank of ........ will
pay the Bearer :;-...... dollars on de-
| mand. :f>o
! ......... Cashier .......... President
1t is only promisory note. It is not
an asset nor the, evidence of an asset,
or of property Or of capital, but it is
an evidence =; of debt-an obligation
which the bank promises to pay in the
final payment OF the national bank bill
is secured by, a deposit in the United
States treasury of national bond. This
fact is admitted: 4, but the national bank
bill is no less promisory note and
| debt of the bank A state bank bill or
any other bank bill is a debt, whether
the security for it's final redemption is
good, bad or Indifferent.
Ever since the discovery of paper
money banking has been the science Of
not only making money from capital
not the property of the bank, but even
to collect interest upon it's debts. Two
thousand years ago our Savior scourged
the money changers from the temple at
Jerusalem, but those Hebrew bankers
/ were loaning the hard shekels of gold
and silver-they were not extorting
usury on their own promisory notes
It is impossible to conceive what Christ
would have done to them had these
| money changers at Jerusalem been
banking on the modern system. The
present system of banking is entirely
different from all. other legitimate
modes of business, and finds no parallel
except in modern monopolies and trusts,
which, like the banks, have usurped
public franchises and do business ON
fictitious capital and watered stocks !
THE BANKERS SPECIAL PRIV
IEGE
The authority which issues a bank
| note to circulate as money, whether. it
be the general government, a national
or state bank, or private banker, en-
joys the privilege that it's promisory
notes, payable in the future without in
| terest, shall circulate as money at their
face value, until redeemed.
What is the. present value of note
for 500, due in 80 days, interest 10 per
cent per annNm? Interest on $1OO 80
days, or three months, is $3.50. You Of
fer such a note to banker, and if he
discounts the note he will pay you
$3.50 for the note, and at the expira-
ton Of the 80 days you must pay the
bank 500. That is, you pay the bank
$3.50 for the privilege to circulate your
note for 500 at the bank for 80 days,
or, in other words, the bank collects
of you $3.50 for the use of $3.50 Of its
| own promisory notes for 80 days-you
pay interest on your own debt, but the
bank collects interest on it's debts
And this rotten principle underlies
and is inseparable from the paper
money system. Bankers want paper
money that is not legal tender, that
is not issued by the government (or a
treasury note); they want that sort of
paper money which is really the prom
issOry note Of the bankers, for then the
bankers become the issuing power and
have a legal right to collect interest
upon their debts.
COST TO THE PEOPLE OF SPECIAL
BANK FRANCHISES.
How much do the national bankers
of the United States make annually
from interest which they collect Upon
their own promissory notes?
The circulation of national bank
notes (the promissory notes of the ma
tiOnal bankers) is about $3.50 ,OOO, 900.
Tho ornno1 &~1%AuAnA <xo~ o..s 3.