Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-02-07

| rather do Ii, than to De the preSluen
Of the United States.
Money Trusts.
I noticed in the State Of Januar,
10th, the startling statement that on
| bank In New York on a capital o
100000, had since the war distribu
ted eighty millions Of profits, beside
laying up a vast reserve. Let me read
Enormous profits of the First Ma
tional Bank Of New York were re
counted today by George F. Baker
chairman of the board Of directors o
the bank, a witness before the hous
money trust committee. Mr.. Bake
furnished the committee with records
showing that since its organization II
1863, with a capitalization Of $500, 600
the bank has made profits amounting
to more than $S0,000,000. In the foul
years since 1908, Mr.. Baker told th'
committee, the bank had paid diW
dends Of 226 per cent, or more thar
twice the total capitalization, which
is now $10,000,000. Samuel Unter'
myer, counsel for the committee, from
facts supplied by Mr.. Baker, calculated
that since he assumed the presidency
of the First National In 1878, that in.
stitution has paid dividends Of 1856
per cent on its original capitalization
l agree with Mr.. Baker, This thing
has gone far enough"
What a commentary on financial
conditions in the United States when
we consider that the Bank Of England
had only 165 million dollars In gold
in its vaults, while there was about
900 millions locked up In the United
States treasury, and 800 millions more
in the vaults Of banks doing no good
to stay a panic, while the Bank OF
England, the worlds great clearing
house, could with one-twentieth OF
what we had, send US 65 millions OF
gold with perfect confidence. 1t could
do this because 1t only uses gold to
settle balances and to redeem its notes,
which are based not on bonds, but the
assets Of the various banks Issuing
them. Banks in the British empire
are not required to carry a fixed
amount of reserve funds, hence this
Call money" Is not concentrated in
one place to promote speculation, but
distributed according to the CONNER
cial necessities Of various localities.
The Bank Of England raises and low
ers its discount rate to meet condi-
tions as they arise, so does the Bank
Of France. This protects the gold re-
serve and makes the banks clearing
houses for all Of the other banks. They
hold the gold reserve Of the nation to
protect credit both individual and ma
tional, while our gold reserve Is piled
up in the treasury like cord-wood, al
the mercy Of Money Trust centered
In New York, which can any day draw
this gold out by using the currency
that the entire country ships to the
reserve banks in New York, and bank
rupt the treasury. This Is the reason
that in the panic Of 1907 the secretary
Of the treasury went to New York and
placed the whole resources or the ma
ton at the command Of Mr.. Morgan.
This Is why the president Of the United
states had to stay his hand and con-
sent to the absorption Of Tennessee
Coal and Iron by the Steel Trust. This
Is how the natural resources OF the
United States are exploited to make
multi -millionaires. No relief can come
except by banking and currency sys-
tenn, not dependent upon New York,
or any other one city. Our slaves were
set free by fanatics who sought new
ways; what we now need Is few IA
natics seeking new ways to set the
white people free, for when the shack
les were stricken from the limbs OF
our slaves, the national bank act rivet.
ed the broken fetters on all, both
black and white, for he who controls
the means Of subsistence controls me
Where shall we find relief? Do you
remember the bondage Of the children
of Israel when the Lord commanded
each to sprinkle the door post with
the blood Of lamb? It was 80 sim
pie that many refused, and the Angel
of Death carried away the first born
in that household. The solution for
us lies at our very doorway, II we will
lay aside personal and political Jeal-
ousies, and utilize the best brain and
talent obtafnable; we have in our land
and It's product, cotton. one asset that
Is unrivaled since Moses led the hosts
out Of Egypt and from the top OF that
lonely mount saw them cross the Jor-.
dan into Canaan, the land that flowed
with milk and with honey.
Cotton Is used the world over, 1t al
ways commands its price In gold. New
York uses our crop to deplete Euro
pean gold reserves In order to main
tain her own commercial supremacy
The price of cotton Is fixed abroad
and measured in terms Of gold. Ev-
ery time New York calls for gold, the
purchasing power Of our customers
abroad Is curtailed and the price OF
cotton falls. Cotton Is the one crop
that always insures the balance OF the
worlds trade being in favor OF the
United States. Cotton Is the very
cornerstone Of international finance.
Why not use it to build US up instead
of permitting 1t to be used as an oo-
struction to our Industrial develop
ment? Why Is 1t that we have become
a nation of panics?
No Panies Abroad.
Why is it that these constantly re-
curing panics do not come In Eng
land. France or Germany? This Is not
the time or place to enter into dis
cussion Of the banking and currency
system OF the United States, and yet
this warehouse bill must be considered
in Its relation to the general subject,
for warehouses are useless without
adequate means to finance cotton
placed in them. There Is no lack OF
money In the United States, no other
nation in the world can compare with
US in this respect. The reports or the
comptroller Of the currency snow 9
banking capital Of nearly double thai
of the entire British empire, and four
times that of continental Europe
Does 1t not seem strange that with
such resources we should be financially
one Of the weakest nations, unable to
save ourselves from such disasters as
the panics Of 1873. 1893, 1908 and
1907 and the present near" panic
the murmurings Of which can even
now be family heard?
The answer to this question Is found
in the fact that while business meth
ods have changed in all industrial lines
within fifty years, to meet radically
new conditions. a Money Trust has
been evolved that holds US rigidly to
the National Banking act Of 1868
passed in war times, not to provide
system Of banking, but as Secretary
Chase said, to compel the banks tc
buy bonds to carry on the war for the
subjugation Of the south.
We hear a great deal In these days
Of the Canadian system Of banking
and every one must admit its infinite
superiority to the one followed by the
United States. It Is not, however
generally known that the United States
first inaugurated this system in 1871
and that Canada copied 1t almost ver-
batim a few years later. The differ
ence lies in the administration: Can
ada succeeded, because they kept poll
tics from interfering, and from the
fact that they impaired the element oi
elasticity to their note issue. Canada