The independent. [volume] (Lincoln, Neb.) 1902-1907, 1905-01-26

Editor Independent: The asset cur
rency proposed by this bill and the
sEs'ssasssist4i Sc q lready in existence
are, in fact, but representa- tf6fis " Uase
credit OF the government, loaned to the
banks at the rate of LID per centum
per annum, except the last 40 per
centum of the possible issue of asset
currency on which they are required to
pay 3 per centum.
Like other combinations operating
public franchises, the banks are to be
enabled to use the public credit for
private profit practically without con-
sideration to the public. The amount
to be paid, as stated above, is called a
tax, and on the surface might be re-
garded as for the benefit of the gov
eminent, but it is not. The banks are
required to deposit with the treasury
an amount equal to 5 per centum of
the currency issued to them. This may
be in bonds or gold. II in bonds,
then the banks receive the interest on
tho bonds.
Section 10 authorizes the secretary
to loan all the money of the govern
ment in excess of fifty millions to the
banks at what is called one per centum
interest per annum. This loan is called
deposit. On the face Of it this looks
as II 1t were for the benefit Of the
but it is not Every dol
lar Of the so-called interest is for the
benefit Of the banks. In section II,
heretofore quoted, in part. it is pro-
vided that the per centum Of the
amount OF currency issued, the So
called taxes, the so-cal,ed interest on
the deposits loaned to bank when
paid INTO The treasury shall be set.
aside and constitute fund. which;
shall be designated a guaranty and re-
demption fund"
This fund is to be used to pay the
outstanding circulation of banks that
have failed. Such notes, as before
stated, are in the hands of the treas
NY department first lien on the as
sets Of the bank that has failed, and
the secretary of the treasury must en-.
force this lien and recover the amount.
It Is, of course, preferred lien as
against Nepositors, and when collected
goes back into the guaranty fund The
whole continuance is for the benefit
of the banks. Every dollar of the paid
up capital may be covered, when the
bill is in full operation, by preferred
liens in the hands of the government.
In fact it is possible for such preferred
liens to exceed the paid up capital by
about 20 per centum. The govern
ment under the provisions of the bill
will loan the banks all the nations
except fifty million dollars lex
cept what is in the issue and redemp-
ton division), and the nations credit
to the full amount a. least of the capt.
tai stock of the national banks. All
this is practically WITHOUT compensa-
ton. The power and prerogatives of
the nation are to be used for the bene-
fit of the bank combinations. No ad-
vantages will accrue to the nations
treasury, and no benefit to the people
in reduction of taxes. On the contrary,
the people are being, and will continue
to be, taxed by unnecessary custom to
maintain in the treasury a surplus in
excess of public needs to loan to the
banks practically without interest.
What is the use of efforts to destroy
trust monopolies in the face of such
a monopoly as now exists, and that it
is proposed to strengthen by this pro-
posed legislation. Here is money mo-
nopOly, trust and currency monopoly.
an exclusive privilege to manufacture
and to sell credits now existing, and
to be made more effective by, this bill.
This money trust monopoly is, by this
given the exclusive right
to create and deal in credits and will
have complete power. If it works out
as intended, over all industry, business
and commerce.
The aggregate of all bank credits
now amounts to not less than 100000
DOC, 900 and is increasing at the rate
Of more than 81 ,000, 900 for every bust
ness day. These credits are at present
money equivalents. How long they
will SO remain is uncertain.
When the asset currency scheme "a
credit based on assets of banks) is In |
operation, the whole vast volume of
bank credits Ito say nothing of other
credits) will rest on bank currency.
itself credit resting on bank assets;
the larger part of which is made up
of deposits. All this vast sum of bank
credits and credit currency is so ar
ranged that, at the option Of the banks |
and creditors, it may be turned into a |
!