The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1903-10-23
B6OO2
I J. B i CHI ] I BILL. {. B
Object to Pointed Out by Hon,
w 81 Bryan 6 n Il

Y: y. Bryan III
THE NATIONAL BANKS B FIXED. 3
BY Il so as They Will bo Able to
Furnish the Republican
Party a Big Campaign 4
Fund
~ The following letter was addressed
| through The Commoner to the Score
1 tary OF the Treasury Shaw by the
Hon. W. J. Bryan. It Is worth read
ing:
You are quoted as having expressed
yourself in favor OF the Aldrlch bill or
of 8ome measure Of like charater. The
object Of the bill is to enable the gov
ernment to deposit in the national
banks much larger sum than 1t has
been in the habit Of depositing.S It
has been estimated that according to
the provisions of the Aldrich bill some
thing like three hundred millions of
government money could be deposited
+ with various national banks. Not
withstanding the fact that the Re
publican national platform Of 1883
s condemned the loaning of the govern
ment's money without interest to
pet banks,n you have loaned more
money to pet banks without interest
than any former secretary Of the
treasury, and the purpose of the AID
rich bill Is to still further increase
these loans. ;s Z
There are certain objections to the
Aldrich bill, and you ought to be pre-.
pared to meet them before you urge
such a measure upon congress. In the
first place the loaning Of government
money to the banks is an act OF favor
itism. The secretary Of the treasury
has to select the banks. Whether he
selects justly or unjustly is question
which the public cannot pass upon,
because it has not the facts before it.
It Is a fact that ono Of the New York
: city banks urged its claim to considcra-
tion on the ground that it's directors
Republican party In the proceeding
campaign. The power Of the govern
meDt to thus reward political friends
and to withhold deposits from politi-
cal opponents is tremendous power
In the hands Of an administration that
is disposed to use 1t for personal or
party advantage. What has happened
since 1883 to take to loanlng of gov
ernment money to pet banks less
reprehensible than it was then?
Second The leaning Of government
money to the banks makes the govern
ment dependent upon the banks. II
it loans large sum Gas 1t is doing
now it is hardly at liberty to with
draw the money, for the withdrawal
of considerable sum would disturb
business and threaten panic. II the
government goes into the business OF
1oaning money to the banks it will be
difficult to Withdraw deposits, and
what Is therefore regarded as an emer-
gency deposit is very apt to grow into
permanent deposit.
Thirdly loaning the governments
surplus to the national banks these
powerful institutions are given a
pecuniary interest in the maintenance
Of high taxes and In the collection OF
large revenues, for the more money
the government collects the more it
has to deposit 1t Is evident that
every banker who has a large govern
ment deposit Is permanently interest.
ed In preventing any reduction OF
taxation, however onerous the burden
may become to the people. Can we
afford to array SO potent an interest
1f &cx, t.
it not difficult enough now for the
taxpayer to secure hearing? Will it
not be more difficult when the national
banks profit, largely by heavy taxa
tion? Can the people afford to use
their own money to hire the National
banks to work against them.
Fourth The Aldrich bill provides
for the payment Of interest at the rate
OF II per cent. Some opposition has
been expressed to this provision, and
until the measure is finally enact
ed 1t is impossible to know that com
pensation, If any, will be fixed. But
whether the money is loaned at II per
cent or is loaned without interest, it
is evident that the banks receiving
the money can make a large profit by
loaning it. II, for instance, $780,
100000 is loaned to the banks at u
per cent the amount paid to the gov
ernment would be four millions and
half. II this money is loaned out at
3 per cent, the banks profits Is four
millions and half. If it is loaned at
At per cent the banks make profit
Of S9.000,000; if it is loaned at 6 per
cent the profit Is $500, 900.
The banks that receive the benefit
Of these deposits can we'll afford to
contribute to the campaign fund Of
the party that continues them. At
the lowest rate suggested above the
banks would make four millions and
half. If they can make this sum each
year for four years, can they not af-
ford to give one years profit to insure
four years more? Is it not apparent
that the Aldrich bill lays the founda-
tion for an enormous corruption fund?
At the lowest possible rate at which
any one will calculate the profit to the
banks, the national banks can afford
to contribute more to the campaign
fund Of the party that favors them
than can be collected from all the
people by any party that opposes
special privileges and seeks merely the
equal right of all.
1t may be added that the AIdrich
bill Is Objectionable because 1t permits
the deposits of miscellaneous assets, as