The mighty King is an exacting Tyrant. All things are dominated by
money. It shapes the destinies of Nations. It rules trade and gives
life or death to all enterprise, as it sees fit. In the hands of
unscrupulous men it is the greatest known power for evil. Properly
curbed and free from the manipulation of designing hands it may be made
the greatest known power for good.
The American people seek by law to control the trusts. They legislate
to regulate Inter-state commerce and to punish rebating and unlawful
restraint of trade. They give us tariff laws and levy Internal revenue
taxes, to raise money with which to pay the expenses of government. Our
country is quadrennially thrown into a spasm of political excitement to
settle these and other great political questions.
Standards of value are discussed, and any standard thus far proclaimed
is shown to be unstable, fluctuating, wrongful and hurtful. Much has
been made and lost in the past by reason of the fluctuation in the
value of the standard of money, be it a single gold standard or a
double standard. Government ownership is advocated by some as a panacea
for all of our political ills. Currency, it is said, should be more
elastic.
Notwithstanding all the discussion and legislation of and concerning
all these, and kindred questions, for more than a century, our body
politic seems still to be sick, and like leprosy and the great white
plague, no known remedy has been discovered for or applied to the
patient.
The wealth of the nation has been, and is now being, concentrated in
the hands of a few. Individuals have been, and are now, accumulating
such vast fortunes that our President has advocated a course that
amounts to confiscation, as the only remedy for the evil.
The money market can be so manipulated by a few men, that they are
able, at pleasure, to make or unmake panics; to stagnate business; to
appreciate or depreciate the value of stocks and bonds, and to cause
untold suffering to the people. Innocent investors are carried from
their feet by the maelstrom of speculation in money.
No great enterprise, be it for the public good or not, can be
accomplished without first obtaining the consent of a few men who
control the money market. A few millions of actual investment in
Railroad stock, it has been demonstrated, can be manipulated so as to
control stacks of railroads amounting to over a billion dollars; when
the maturing crop of the farmer is ready for the market, the volume of
currency in circulation is not great enough to move the crop to market,
and the men in power reap large profits out of the money furnished for
this purpose. A panic follows and the farmer is made to suffer and
either hold his grain or sell it on a declining market.
The control of this greatest of all powers on earth should be taken
from the hands of the few and deposited where it belongs, viz., into
the hands of the Government. When this shall have been done all the
ills which flow from this source will be healed.
It has been well said by the immortal Lincoln that this is a government
of the people, by the people and for the people; and yet, we find that
the place where there is the most need of governing the people for the
greatest benefit of the whole people has been neglected.
Money is the controlling factor of all human agencies. Regulate it, and
a proper regulation of most great evils will naturally follow.
Money is controlled by the banker, not because he owns all the money
which he controls; but because the masses of the people deposit their
money with him and thus he gains power over not only the little capital
which he invests in the stock of the bank, but over the very large
volume of deposits which his many customers leave with him.
The great power of the banker is a power placed in his hands by the
people. The money which really gives him power is not his own, but
belongs to the depositor.
If this great power were given by the people to our Government, it
would be more impartially exerted, because the Government is the
people. The people would thus be protected from loss of deposits
by failing banks, absconding bankers and rascally bank officials.
Combinations of the people’s money in the hands of a few men, to
benefit the few men at the expense of the people would cease.
When a condition exists that is a menace to the people, a condition
that is being taken advantage of by certain individuals to the
detriment of the great mass of people, it is the right and the duty of
the Government to enact such laws as will eradicate the nuisance if it
can be done.
A banking scheme can be devised that will accomplish this beneficent
purpose. Under it an elastic currency can be established, a
non-fluctuating standard can be provided for, the tax gatherer can
be made to disappear, panics cease, depositors will be protected and
unlawful combinations in restraint of trade be a thing of the past.
Put the Government into the banking business and the thing will be
accomplished.
It may be charged that the scheme is too radical. It may seem so, but
nothing is too radical that is right. It will be a very great change
from the present system, and will be opposed by all the force and power
of organized wealth.
It may be charged that it is not authorized by the constitution. If it
is right, change the constitution. It won’t be the first time it has
been changed. At one time the negro was a slave with no more rights
under our constitution than an animal. Today, by reason of a change in
our constitution, he has all the rights of citizenship and stands on an
equality before the law with his white brother.
Let the General Government, the State, the County and the municipality
get together and go into the banking business. Does it not look too
vast to be comprehended? Think about it a while, Mr. American Citizen.
Don’t brush aside the idea without consideration, but if you are not
interested in opposing the plan, and will give the matter a little
thought, you will see the advantages of the proposed system.
Thomas W. Lawson was at one time opposing the present system; he laid
bare many of the fraudulent and unlawful outrages perpetrated by it,
which the system of Government bankers, if established, will be able
to prevent. Take the present system, which he has so ably shown to be
noxious, and transfer it from the hands of the individuals into the
hands of the Government, and this great power, now exercised by the
few, will be placed in the hands of the people, where it justly belongs.
Give the General Government at Washington, under the supervision of
the Treasury department of the United States, banking powers. Let
it organize a central bank, with power to supervise and control all
the lesser banks proposed to be organized by States, Counties, and
municipalities. Provide by law for the opening of a bank in each state,
under the control of the State, but to be tributary to the Central bank
at Washington, each to be known as a United States Bank of Illinois, or
the state in which the same is located.
Provide also for tributary banks in each County, to be known as a
United States Bank of the County in which the same is situated, with
general banking power; it being optional, however, with each state
to pass laws to avail itself of the banking privilege or not, as its
legislative body may see fit; this option also to extend to each County.
Make a provision that the Central bank at Washington shall receive
deposits from County Banks and issue Government bonds for the amount
of the deposit; the County Bank then to be empowered to issue notes,
similar to the present National Bank Notes, to be used as a circulating
currency among the people, to the extent of its Government bonds,
depositing the bonds with the Central bank as a security.
Give the County Bank general banking power, to receive deposits, draw
exchange and loan money on real estate, chattel and personal security,
under proper regulations.
In Counties where the privilege of engaging in the banking business
shall have been availed of, branch banks of the County Bank may be
organized in such localities of the County as the County Bank may
determine is necessary or expedient, with the same banking powers as
the County Bank.
Give to the County Banks and their branches, in addition to the
general banking powers, power to execute Trusts, act as Executor,
Administrator, Guardian and Conservator.
Give to the County Bank, in addition to its regular issue of bank
notes, power to issue, at any time the exigencies of the times may
require, other bank notes, to an amount not exceeding a certain per
cent of the assessed valuation of all real and personal property of
the County, for the year such assessment was last made for taxation,
upon payment to the General Government of such per centum on said
circulating notes as will insure their prompt recall whenever the
emergency which called for their issue shall have passed.
Let the funds deposited with the Central Bank at Washington, by the
various Counties, and for which Government Bonds shall issue, be
loaned out by such Central Bank, at a reasonable rate of interest,
sufficiently high to produce a profit, to enterprises of an inter-state
character, such as railroads and other large borrowers; and let the
same be invested in stocks and bonds of known stability in large
amounts; thus furnishing a fund to be used in large enterprises,
and relieving the promoters of such undertakings from being under
the control of a few individual money lenders, and at the same time
furnishing a source of profitable investment of the people’s money.
The various state banks may be simply branches or departments of the
Central Bank at Washington.
Such State Banks may receive deposits from the various County Banks of
any state as a medium of exchange, and the same may be loaned under
the direction of the Central Bank, the same as the proceeds of sale of
Government Bonds, but they shall be required to keep constantly on hand
a certain per cent thereof, to be fixed by law, to pay exchange.
The profit of the Central Bank shall be paid into the Treasury of the
United States to defray the expenses of the Government so far as the
same will apply.
The profit of the State Banks, if there be any, shall be paid into
the Treasury of the States respectively; and used to pay the current
expenses of the State, as far as the same will apply.
The profit of the various County Banks shall, after paying a certain
per cent thereof, to be fixed by law, into the Treasury of the State in
which such County is situate, be paid to the Treasurer of such County,
to defray the expenses of the said County. And any sum so paid by any
County into the State Treasury, to be deducted from the taxes levied in
said County for State purposes.
State Banks shall be only branches of the Central Bank and shall be a
part of the same.
County Banks shall be subject to examination and supervision by the
Government of the United States.
These observations may be crude, but certainly they are worthy of
consideration. Is the general idea not worthy of attention?
Perhaps much that has been suggested should be eliminated entirely;
much probably should be changed; much more perhaps should be added.
Time and trial of the system would bring to mind many good ideas.
Consider it and see if a little thought given to the matter won’t make
it look feasible and open up a much wider field for thought than merely
the idea of a people’s bank.
What are the possibilities of some such system? Not only what are the
possibilities, but if you please, what are the probabilities as to the
results that would follow such a system?
It will settle the Trust Question because, it will take the control
of money from the men who are interested in the Trusts, and thus
enable competition to the Trusts to borrow money with which to go into
business in opposition to them.
It would hardly be possible, under present conditions, for a person
or syndicate to sell bonds to supply the money with which to go into
business in competition with the Standard Oil Company. The men who are
in control of the money market would not dare to incur the ill will
of such a powerful influence as that which is behind the Standard, by
buying bonds of a rival concern. The men who are interested in such
gigantic Trusts are the ones who control the money of the Country. So
it is with competing lines of railroads. The men who now are in control
of the through lines of railroad have too much influence over the money
market to permit competing lines to be built.
Give to the Government banking power, with local County Banks, and the
currency question will settle itself. The much talked of standard of
value will become fixed. The currency will be made as elastic as the
exigencies of the times shall demand.
We will have not only gold and silver for a basis but as well all of
the broad acres of fertile land, the mines, the grain, the horses,
cattle, hogs and sheep, in fact everything that goes upon the
assessor’s book will stand behind the dollar. For the County and the
Government will guarantee it.
It will be elastic because each particular locality will have the
power to issue emergency currency to meet the immediate needs of the
community. The County with all its property will stand behind it,
and surely all of the land and property in the County will furnish a
sufficient security to make good a sufficient volume of currency to get
the product of farm, or mine or manufactory to the market.
It will furnish a security to the depositor and thus keep the money
which should be in circulation from being hoarded; for the man who
has a little money will have no fear of depositing it. A banking law
recently enacted in Oklahoma has been much praised because the state
guarantees the deposits. How much better would be a law which provides
that in return for the guarantee of the deposits the State shall take
down the profits of the business. Is it right that the State should
take all the risk of losses and not share in the profits?
It will settle the much disputed Tariff Question, because the profits
arising from the banking business will probably pay all the running
expenses of the Government, and leave a balance besides.
If this should prove to be true the Custom house can be abolished and
there will be no necessity of levying tribute on imports.
It will settle the question of Internal Revenue taxes, for the
Government will need no longer to shock the tender sensibility of the
Prohibitionist by levying tribute on the vile Demon to support itself.
It may, eventually, lead to the Government ownership in such a gradual
manner that it will not unsettle the business interests of the Country,
for as the revenues produced from the profits of the banking business
increase in excess of the expenses of Government, the same can be
invested in bonds and stocks of the Public Utilities from time to time,
until after a number of years they would naturally be absorbed by the
Government.
The local tax collector can be discharged and our direct tax on lands
and chattels will cease, as the profit to each County will more than
pay the expenses of the County, including State taxes.
Examine the published and sworn statement of all the local banks in
your County, and figure a reasonable rate of interest on the deposits
alone, not including capital stock and other sources of revenue, and
you will find a profit per annum of more than sufficient to defray the
expenses of your County, including maintenance of schools and roads and
bridges.
This scheme may seem visionary at first, and not feasible, but think it
over. Don’t dismiss the idea without a thought. Surely it is worth some
consideration. Perhaps you may get some good idea from it.
Bankers will dismiss the idea, of course, as not being worthy of
consideration. Money lenders will oppose it. Large capitalists will
treat it lightly. To the man, however, who is interested in Government
of the people, by the people, for the people, free from any personal
advantage, it will surely merit your consideration.
Governments are formed to regulate society and to protect the weak
against the strong. That was the prime object of Government. That which
vitally affects the public is proper subject of legislation. If a wrong
is being perpetrated it should be righted by law. The people have
the right to expect this to be done. They have it in their power to
regulate this greatest of all necessities, money.
One hears a great deal said about the necessaries of life. We talk of
raiment to clothe us, houses to shelter us, food to satisfy our hunger
and fuel to keep us warm, as the necessaries of life, but none of these
things can be counted as any more necessary than money, for before we
can procure these things we must first have money. It is the first
necessity of life. Is it not proper that it should be put under the
control of our Government and its control taken out of the hands of the
few?
Let all the people control, by means of a proper Government, this first
great necessity.
People’s banks will protect the depositor and make his deposit secure.
People’s banks will relieve the borrower from the money shark and
usurer, as a fixed legal rate of interest only will be charged.
Let us have people’s banks, and the power of money, which is now given
by the millions of depositors in this Country to a few men, will be
taken out of the hands of the few and returned to the people through
their Government. Wall Street will be transferred to Washington.
Let us have people’s banks and the investor will not be crushed to the
wall by a panic, as they will be a thing of the past. Investments will
be more stable and more secure.
The standard of value will be fixed for all time, tariff laws will need
no amending and changing from time to time, and cause restlessness and
uneasiness in the public mind, and every man will have an even chance
with every other man in his race for a livelihood.
_A DWELLER WITH THE PAST._
From cabin crude on lonely height—
Eyes piercing keen the solitude—
She gazes at the scarce-worn pass,
Where shadows ceaseless bend and brood.
A soft caress, a word or two,—
The pleasuring thing danced on its way;
But to her, guileless child, it seemed
That blossoms bright fell from the day.
She sighs, the sputtering wick burns low,
The night wind bends the long hill grass,
And the soul of that fleeting bygone day
Glides noiseless o’er the rock-ribbed pass.
Ricardo Minor.