Democratic Sentinel, Volume 1, Number 37, Rensselaer, Jasper County, 26 October 1877 — The Cause of Hard Times, and How They Can Be Prevented. [ARTICLE]

The Cause of Hard Times, and How They Can Be Prevented.

Hard times could never afflict the American people while the earth yields lo the husbandman her annual pro luctions, if we had a proper financial system. The present and ail former seasons of hard times in the Uni ted States, have been the result of a faistS deceptive and delusive financial system; false in assuming that a paper currency of five times the value of gold, could be redeemed with gold. The present hard times and prostration of business, and forced idleness of the laborer arfe caused by the false deceptive belief that paner money can be made equal in value with gold by contracting it. when it does not possess the same legal value with gold. The gold redemptionists all admit and desire a paper money redeemable in gold and made as good as gold solely on the faith, hope and delusion that the promise of the banks to redeem it in gold, can or will make the paper as good as gold, but they most persistently repudiate and reject giving the paper the same legal character and power of gold, and which is the only thing that can make paper money as g>od as gold. Ihe present national banking is, we think, the best banking system ever yet adopted, and which is nothing but a cunningly devised scheme < y which the bankers live and get rich by getting interest on what they owe, and is a direct fraud tn 1 robbery of laborers, mechanics, farmers and business men, which is accomplished in the following manner: There are about seventeen hundred millions of government bonds, upon which the government pays interest semi-annually, thus placing the lender and the government on an equality, the government receiving the use of the money and the lender receiving the interest for its use which leaves each party equally benefltted according to contract. The banker then gets the national currency in the following manner: Ist. By organizing a corporation called a a bank, and then purchasing say one hundred thousand dollars in government bonds, which he takes and deposits withfthe Treasurerof the United states, who is compelled to keep and take care of the bonds, and pay the interest thereon regularly to the bank, the government all the while being responsible for the safe keeping and return of the bonds. The government then furnishes to the bank ninety per cent, of the par value of the bonds in natitNMlbank notes, printed and all executed ready for circulation, except the signature of the president and cashier of the bank; this without cost or expense to the bank. When these notes are signed by the president and cashier of the bank, they become a promissory note of the bank, payable on demand in greenbacks, so that when they are signed and put in circulation, the bank has an outstanding of ninety thousand dollars of indebtedness due on demand, and the people, through the government, have become security for its redemption or payment, thus increasing the indebtedness or liability of the government ninety per cent., only holding her own bonds, deposited by the bank, as collateral security, and when they are signed and put in circulation, the bank gets tea per cent, interest on what she owes; that is on her ninety thousand in notes which sne owes to the people, she receives uine thousand dollars interest annually from the people who hold her notes, and on which the people through their government, are security for the redemption. So ft will be seen that on the three hundred millions of national banß indebtedness in circulation, the people are paying to these banks annually thirty millions of dollars interest. Under the present law the entire seventeen hundred millions of dollars may be turned into a national bank issue of promises to pay, amountingto fifteen hundred and thirty millions of dollars, npon which the banks will get ten per cent, interest, or one hundred and fif-ty-three million dollars annually.— This shows so clearly the whole design and purpose of the national banks, and the reason they are opposed to the greenbacks, that we feel that the people will stop this grand and cunningly devised scheme of banks to live off the interest of what they owe; and if the indebtedness of any one is fit for a currency or circulating medium, the promises of the government are the best that can be made.—and if the government would loan to the people her promise to pay, and the people pay her the same interest they pay the banks, the interest would pay the entire expenses of the government For there is no le gal way for national bank notes to get iu circulation, except by some one borrowing them from the banks, and placing; a rider of ten per cent, interest thereon to come off the laborers, mechanics, farmers and business men.

J. L. MILLER.

Lafayette, Ind.