Democratic Sentinel, Volume 2, Number 38, Rensselaer, Jasper County, 1 November 1878 — Finance Catechism. [ARTICLE]

Finance Catechism.

Republican—Why do the Greenbackers oppose the national-banking system so bitterly ? National—Because the national-bank-ing system is the most stupendous swindle ; the most outrageous scheme of robbery, ever legalized by a free people. Republican—lt is often so asserted, but will you make it plain so all can see it as you do ? National—We will try; let us go into the bank across the street, and prove it by the banker himself. National—Mr. Banker, hnw mneh money did you loan to the Government ? Banker—One million dollars, sir. National—What security did you take for the loan ? Banker—l took the Government’s bond, payable in twenty years, drawing 6 per cent., gold, interest. National—Do you still hold that bond ? Banker—No; I pawned it to the Government, and received on it $900,000 of national currency. National—What did you do with the $900,000 of currency. Banker—l paid it out to the people for property. National—What security have the people that the currency you paid them is good? Banker—My bond is on deposit as collateral for its final redemption by the Government. National—Then you have parted with nine-tenths of your claim against the Government by passing it over to the people in exchange for their property? Or, in other words, the people have refunded to you 90 per cent, of your loan to the Government, and taken a lein on your bond ? Banker—Yes.

National—Do the people draw from the Government nine-tenths, or their proportion, of the interest on the bond ? Banker—Oh, no, I still continue to draw’ the entire interest, without being taxed; while the people who own ninetenths of the claim draw no interest, and are taxed to pay mine. National—-Then really the Government owes you but SIOO,OOO of the million, you having transferred $900,000 of the claim to the people, and at the same time the latter are taxed to pay you interest on the whole? Banker—Those are about the facts under the law. National—To what extent does the law allow you bankers to carry this system of speculation? Banker—We are not limited by law. We can carry it to the extent of the bonded debt of the nation; and,as John Sherman is obliged to increase the bonded debt from, year to year to obtain gold to pay interest, we can carry it to the extent of our opportunities for speculation. It is one of the nicest schemes ever invented. It is like a ratchet wheel —it takes all and gives nothing The whole people are taxed to pay ns interest on what they do not owe, while w r e are exempt, even from our own burdens.

National—Do you expect to hypothecate more of your bonds for currency, ami transfer them to the people for property ? Banker—Yes, as soon as we can get the infernal greenbacks out of competition, and property values are depreciated enough to enable us to rope in $3 worth for $1 of currency. This we intended to do when we got a clause inserted in the Redemption act to allow us to inflate our bank currency without limit. National -What amount of bonds do you now’ hold, which yon are at liberty to “put up” for bank currency? Banker Near $10,000,000,000, with what we already have up. National—By handling the $2,000,000,000 of bonds and the nine-tenths or $1,800,000,000 of currency, as you did your $1,000,000 and $900,000 of currency, what would be the result, financially, of your investment ? Banker—The result will be, we shall carry but one-tenth, or $200,000,000 of the public debt, while drawing interest on the whole. The people will carry nine-tenths of the burden, draw no interest, but have the privilege of paying ours.

National—How much will your annual interest amount to ? Banker—About $100,000,000. National—What do the tax-payers get in return ? Banker—Nothing. National—Then you contracted to extend a certain favor to the Government, for which you were to receive $100,000,000 in gold, per year, from the people. But, through the agency of your national-banking machinery, you are enabled to make the people perform nine-tenths of your contract, while you receive the entire reward. Is not this most outrageous robbery—a swindle upon tlie people ? Banker—(John G. Deslder, President Franklin National Bank, Columbus, Ohio)—lf the people are such a fools as to vote for men to put saddlesj on their backs, spurs on my boots, andj then invite me to ride, I am not going on foot. If it is robbery, tlie people who sustain the party that authorized robbery are to blame, and not the robbers.—The Advocate.