Democratic Sentinel, Volume 2, Number 12, Rensselaer, Jasper County, 3 May 1878 — Financial System—Who Reaps Our Benefit. [ARTICLE]

Financial System—Who Reaps Our Benefit.

A correspondent of the Rural World, in a recent number of that paper, draws a vivid picture of the financial system of onr Government, proving conclusively from his standpoint that national banks have been detrimental to the interests of the masses. Can this be successfully controverted ? “I am a bondholder. In 1864 I had 020,000 in gold. I gave it for $50,000 in greenbacks and gave them for fifty thousand 5 20 bonds, deposited them with the Treasurer at Washington, and he gave me $46,000 in blackbacks. I came home and started a national bank, I loaned the blackbacks to the farmers, and of course took a mortgage on their farms. Thus in about four weeks after I sold my gold I bad $95,000 on interest. As the law only allowed me 10 per cent, on loans, I had a silent partner who started an office and advertised Eastern money to loan at 10 per cent, on farms for security, and no money let for less than five years, and in sums of SSOO and upwards. But my partner always charged 5 per cent, commission for doing business—and the deposits in my bank generally amounted to $30,000 on an average, and I generally kept it loaned out—and during all this time my $50,000 in Washington were drawing 6 per cent, in gold. I always converted the gold into greenbacks and loaned them, and thus, by honesty, economy and industry, on Jan. 1, 1870, I had mortgage notes of $182,000. “ Since then I have been swindled by a great many disVonest farmers, who mortgaged me land for more than it was worth, and have been heavily assessed by the Bankers’ Union for money for political purposes, such as passing laws to strengthen the national credit; so I have been eight years and have only doubled my capital, which is now a little over $360,000. Now I can’t see wherein I have dealt unjustly. Then why all this cry against the bondholders, and why should the people want to pay us off in worthless greenbacks and cheap silver ? I would advise the greenback men to just keep cool, keep your shirts on till we show you our hand. It is true, 1 expected when I bought bonds that greenbacks would redeem them. But Congress has settled that question by passing a resolution tnat we should be paid in coiu. And when silver began to be so plenty Congress saw, in its wisdom, that to pay us who stepped for • ward in the time of peril, and laid our money on the altar of our country, would be financial ruin to us, a twin brother to repudiation. So it demonetized silver.

“Now, you greenback yelpers and howlers,* just keep cool, keep cool, and trust to the Government, and don’t go back on the public faith. The first thing you know you will be called disloyal. Now, would you not be ashamed, right in the face of our noble laws, to offer the German and English, that live away over in Europe, our greenback rags and cheap silver for United States bonds ? It is true the present bond system is oppressing the poor of this country, but they can afford to grin and bear it for the sake of honesty and loyalty. If you go back on public faith, and then get into another war, we will not let the Government have our money. And, further, if you go off to these outside unimportant issues, when we send out our speakers in the next campaign, and crack our party whips over your backs, you will leap back into the traces, and feel ashamed of the way you are now doing. Beware ! beware ! I could say to you much more, but the above is plain and simple, and should be sufficient for the present.”