The Union times. [volume] (Union, S.C.) 1894-1918, 1913-08-08

But no citizen can get this endorse
ment. He may buy the bonds, but he
cannot use them except through own
ing national bank. No State bank
gets this endorsement, this Govern
ment credit. No industrial corpora
tion, cotton mill or other factory,
railroad or farming corporation. On
railroad or farming corporation. On
ly the national bank. But the nation
al bank is misnamed. 1t is not ma
tional-it is not owned by the nation.
1t is as private corporation for
private profit as any other corpora
tion-the Standard Oil or the Steel
Trust. Thus one set of corporations.
national only in the sense of being
chartered and supervised and nurtur-
ed by the National Government, has
the advantage of the Governments
recommendation and quasi-endorse-
ment of large batch of its promises
to pay, and is the specially privileged
and monopolistic private agency or
private brokerage through which the
National Government issues its mon
ey, or that great proportion of its
money based upon other assets than
actual gold or silver.
Here we have fine illustration OF
what has been called Special privi-
lege." Likewise a fine illustration of
Government partnership with .ri-,
vate business" The national bank
gets interest from the Government
on its money invested in bonds Just
as any individual would get interest
on the investment; but it also gets
the use of the currency based on
those same bonds, and lends this cur
rency to the people, obtaining in this
State or. per cent interest addi-
tlonal on the same investment. Fu:-
ther, the national banks are thus
given the Sovereign" power of con-
trolling the supply Of money (or this
large proportion of it) and controll-
ing its distribution, saying yes or no
as to who shall borrow it. Gilt-edge
collateral, United States bonds them
selves, in the hands of a mere man.
cannot command money" The
larger and more powerful national
banks, in the great cities of the
North, thus select the enterprises
which shall be undertaken, the
groups of financiers who shall ac-
quire the most desirable industrial
plants of the country and dictate the
wages of the workers and the prices
TO the consumers. The Southern ma
tfonal banks are still relatively weak
and dependent, and merely subsidi-
ary. The big national banks of New
York make our Southern banks hang
on their favor for loans and renew
ais, just as the home banks saw YES
Approved commercial paper will
or no to their customers who ask
whether money can be had or not. A
call from New York calls along the
line. The money must come. The
notes must be met. The collateral
must be sacrificed. The cotton long
held in the warehouse against the
rise that must come unless the "hold-
ing" is broken, must be sold regard
less of price when the "accomodat-
ing" bank regretfuiiy says that the
money advanced on the cotton can
not be longer spared-obligations
must be met in New York, and the
cotton must be sold. The home bank
is as helpless to indulge the farm
er till cotton goes up as the farmer
is to help himself.
Thus it is within the discretion of
the leaders of the chain of Govern
ment favored (national) banks to
limit the credit of the parts Of tho
country dependent upon them and or
dinarily served through weaker
banks. They may say which Sec
tions Of the country shall be devel-
oped and in what degree by capital"
what water powers shall be left 90
ing TO waste through this generation |
rather than be brought into use as
competitors of others within a Ger.
tain zone, what new railroad deyel- |
opments shall be permitted in q Civ
en- territory, not with regard to the
needs of that part Of the country. but |
with an eye TO the continued profits