V Ml I MONEY, ITS HISTORY. Gold and Silver. BY L1 FOGY. No. 2. The Bank of Tenice was established in 1171. There was a loan forced from the wealthy Venetians to save the Republic in a war against the Grecian Emperor. Each citizen was required to contribute according to his ability and by a decree of the Great Council the office oi Chamber of Loans was instituted. The contribu tors to the loan, were made creditors to that office and received an annual interest of four per cent. CotweU, p. 289. These loans were incribed in a book, authenticated and made evidence of the whole debt, as well as what be longed to each subscriber. The inter est was punctually paid into the office and thence distributed to each cred itor. Econ Poletique, par Henri Siorch, vol. 21, p. 95. A medium of debt paying without the use of a coin. This was a great discovery. BANI 0F GENOA. The Genaese system of finance was the most remarkable and complicated one of which his tory gives any account. In 1302 they reconstructed the system, and - !.. the reconstruction was similar to re construction on the South in its effects. In 1407 the people demanded a change. This banking system, like our own, was not nearly as favorable to the people as to the bankers. Carlo Cuneo gives a table of rates of value of shares: In 1559 shares were 48, in 1582, 112; in 1606, 219, and 1621 at 278. While the bank of Genoa had higher rates of interest than the Bank of Venice, it never gained nearly so much importance. It took quantities from the government the Bank of Venice took from the people. The Bank of Genoa never attained any greatness until it became a bank Of iS3U3. The Bank of Amsterdam was insti tuted in 1609. While the Bank of Venice had for centuries been excit ing the wonder of the world, the peo ple o Amsterdam were so wedded to the gold and silver system that they s -made their system much less practical, more clumsily arranged and much more expensive than the Bank of Venice. The Bank of Hamburg followed and was similar to those already re ferred to. It was founded in 1619. Banking was introduced into Eng land by the Lombard Jews who brought the system with them from Italy. The Bank of England transacts the whole business of the government. Adam Smith says of it: "The bank acts not only as an ordinary bank but as a great engine of State.'' It went into operation in 1695. Its whole capital was loaned to the government and the interest secured by taxes. Its first paper issue was for 20 pound note3. In 1696 it suspended specie payments. The design from the first was to make an engine of power out of the bank. For 175 years no de positor has lost a dollar of his de posits. The taxing power of the govern ment is used as a base for issuing and securing notes. At no time for a century and a half has the silver and gold in its vaults been anything like its circulation. 1 will quote as an example the re port of February, 1815, just half way in the period I named. Feb. 23t, 1815. 27,261,650 pounds. 11,702,250 " Circu'ation. Deposits. Securities. Bullion. Surplus. 44,558,501 2,836,910 it 7,631,510 This report shows that circulation and deposits are in excess over the coin and bullion of $184,639,950 in our money. The Bank of Scotland is the best yet devised. The Scotch banks were created in the interest of commerce. Its charter was granted by the Scotch Parliament in 1695. The Bank of Scotland started with the design of making credits based on property and not on com. It identified itself with the people. The laborer deposited his money and stood on an equality with the lord. The bank taid one per cent, less than rates of interest to all depositors. Thus it was a vast savings bank, a bank of deposit and a bank of issue. The Ensrlish have tried for a cen tury to get the gold base attached to me ocotcn oanK dui witnout success. The great advantage in the Scotch system is the loaning of the credit of . - . me DanK to those who use it. The merchandise purchased is the base and not the gold or silver on deposit. The rebellion of 1715 nor that of 1745 nor the disturbances following the French Kevolution of 1793 or that of 1797, nor yet the great crash of 1825 effected tae ISank of Scotland, nor did the people at any time made a run on the Danl. JUe Wolf p. 133. The early sellers of our country adopted the English system. The ob ject of our banks has been pecuniary gain. Massachusetts made an issue of paper in 1690. In 1702 South Caro lina made similar issues. Pennsyl vania made the first issue that could properly be called money. It was en tirely -under control of the Provincial THE PKOGrRESSIVE FAEMEE MARCH Government. Its loans were secured by land or by plate deposited in the office. The borrower was made to pay 5 per cent. Gov. Powell, Dr. Franklin and Adam Smith all com mended the plan. Its issue of paper based on merchandise or lands, never sunk below the value of gold and silver. Holmes, vol. 2, p. 110. These credit bills of Pennsylvania were so much better than those of other States that there was a demand for them in furnishing bills of ex change. The first bank in the United States was the bank of North America. It was incorporated by an act of Congress on the last day of the year 1781. Its capital was limited to 10,000,000 in holdings, but its issue was unlimited. In 1782 the bank went into operation with a subscribed capital of $400,000, 254,000 was taken by Mr. Morris for the general government. Thus banking was instituted with out any capital. The prelended capi tal was only the money which passed through it belonging to the United States a deposit rather tha a anything else. Tha charter to the first United States bank was passed on the 20th of January, 1791 by the Senate. The capital was ten million dollars, one fifth was subscribed by the government. Ihe government had no money to pay its subscription, proposed to borrow it from the bank. The bank having no money to lend, passed a credit of two mil lions on its bank to the government and the government paid 6 per cent, on the credit. Under the charter of 1816 (its first renewal) the capital was increased to 3o millions. The government sub scribed 7 millions having no money the bank again gave it credit. The bank went into operation Jan. 7, 1817, and only about one per cent, of it3 capital was paid in, yet it was run on a " specie basis." Our readers will see that it was not a question of goodness of currency, but the point then, as now, was and is: " The power to oppress and the per cent, of profit obtainable. We are anxious for some opponent to give us cause to bring out the par ticulars of the banking scheme. On the 4th of July, 1832, a bill to re -charter the bank passed Congress, but President Jackson vetoed it. There were two considerations, one political and the other State banks', both opposing it. There were some 1,600 of State banks under free bank ing or general banking laws, in 1860. In March, 1836, the bank of the United States had a circulation of $19,195,817; it had of specie $12,- 175,476, ond deposits of $16,759,507. The question is, how could the bank pay the deposit of 16 millions with 12 millions of specie and then redeem the 19 millions of currency ? Again. Keports of Bank Com. of Conn. 1837 to 1849, shows the aver age circulatian of $11,669,457, and an average of deposits of $478,719 of specie, that is to say 4 per cent, on the 100 dollars of paper. Did the specie belong to the banks or the people ? THE WESTERN WAY. The Leavenworth County Alliance, Kansas, at a recent meeting, among others, passed the following resolu tions: Whereas, Many movements for the advancement of the wealth pro ducers, the agriculturists and the laborers of this country have been thwarted or wrecked by the subsidized press, and Whereas, To know the truth about who and what is oppressing the people and who is getting the profit and the true remedies for the evils we endure, some paper should be taken whose speciality is the telling of these facts; therefore be it Resolved, That we, the Leavenworth County Farmers' Alliance, do fully endorse The National Economist, of Washington, D. C , and highly com mend The Advocde, of Topeka: The Western Rural, of Chicago, III; The American JSon Unormist, of Winfield, Ks.; The Toiler, of Nashville, Tenn.; The Progressive Farmer, of Raleigh, N. C; The Alliance Tribune, of Topeka, Ks. Resolved, That we recommend that each Sub Alliance subscribe for one or more good Alliance papers for the use of its Lecturer and that each member subscribe for such papers for his own use. Resolved, That we urare all members of the Farmers' Alliance to watch their political papers closely, and if any treat us unfairly in any wav see that it enters your house no more warming an adder in your bosom is Daa policy." When the masses of labor come to understand the value of an economic educatiou, we will hear no more wrangles about the relative value of parties and candidates. Officers-elect. no matter who they are, will know what will be expected of them. The great work of the hour m which in tellierent labor should eneaere is to edn cate tne puonc mma on economic questions, point out the errors of the j 1 1 i - , , 1 ! i present system, and unite with all who are willing to substitute a better. Labor must appeal to the virtue and intelligence of the peoole and their vices and their ignorance. Rock j-sianaer. RAILROADS AND RAILROAD COMMISSIONS. No. 9. Cor. Scotland Neck Deaiocrat. The. highest and most obligatory duty of a sovereign State or power is to refrain from oppressing or taking advantage of any citizen subject to that power. Its next duty is to see to it that neither any of its creatures nor any of its citizens or subjects oppress any other citizen or subject under cover of law. And as soon as any law or granted privilege becomes unjust and oppressive the law ought to be repealed; and as soon as that privilege, is exercised to the detriment, damage or annoyance of the people, it is the duty of the sovereign power to withdraw it, and the State that fails to do this falls far short of its duty to its citizens. When these special priv ileges to build roads and haul freights and passengers were granted to the railroad corporations fifty years ago, and exempted them from taxation until they paid a dividend of eight per cent, on the capital invested, it was not contemplated, nor even sus pected, that these corporations would become the controlling money power of the State, and that they would ex tend their power and influence into every nook and corner of the State and dictate the nominees for every important office within the gift of the people. Our fathers in granting these special privileges to these special corporations thought not of the possibility, much less the probability, of these organiza tions combining and controlling the power that makes and executes the laws of the State. And yet every well-informed citizen knows that the railroad presidents and their paid at torneys absolutely controlled the last three legislatures on the subject of a railroad commission, and to some ex tent the legislatures for twenty -five years past. Now I am not making war against these railroad kings. They are elected by the stockholders to look out for the best and greatest interest of these roads. They are discharging their duty as faithful servants. They are doing what they have contracted to do; and if they were discharging their duty in the service of the people as they are in the service of their present employers, the people would say, " Amen. Well done good and faith ful servant. Now, how shall these wrongs be remedied? Surely not by abusing the railroad authorities, or by break ing down or even crippling these cor porations. They are as indispensable to the prosperity of the State as the farmer, the merchant, the blacksmith, the lawyer or the doctor. They are en tided to make money and control the State as much as any other class of citizens, provided they use no corrupt ing funds or undue influence. The majority does not exist with the railroad authorities, their attor neys and stockholders. The people constitute the majority in this State; and if they desire to control the legis lature and to test the constitutionality of a railroad commission, its expedi ency and its power to regulate the tariff and transportation, let them see to it in the primaries in all the coun ties and townships in the State, that none but good and true men are sent to the county and State conventions. Railroads control just as individuals control by being kind and extending courtesies to those who can help them when they need help. When they do a lavor or extend a courtesy they ex pect a dozen in return. When they allow a man to gather an apple from their orchard they expect to gather a dozen trom his. As soon as a man is elected to the legislature they send him a free pass- When a man is elected or appointed circuit Judge or solicitor tne.y send mm a tree pass. All this is wrong. There is no reason why a legislator, Judge, Solici tor or Governor should not pay his fare over the railroads. They have no more interest in these roads than other people, and no more right to ride free than other people. In fact it would seem that the man who gets four dollars a day and ten cents a mile going and coming as a legislator is better able to pay his fare than the man who gets fifty cents a day. And the Governor or Judge who gets twenty nve nundred or three thou sand dollars salary is better able to pay fare over the railroad than the man who gets less than twenty-five j n il i i -t uuuars a inontn ior nis iaoors. Do the railroads send free passes to farm ers and laborers of the country? Well why don't they ? Because as a rule the latter have no apple orchards from which twelve apples can be gathered to one. Of course the railroads have never intended to buy any of these Governors, Judges Solicitors and leg islators; nor did these recipients feel like they had been bought when they received ana usea tnese iree passes. These little courtesies, running all the way from thirty to three hundred dol lars a year produce quite a kindly feeling on the part of the free passers towards the railroads. And perhaps these' little courtesies might not influ ence the most patriotic men that have ever lived, but it is doubtful. Cesar's wife ought to be above suspicion and yssar ougnt to hold her above suspi cion. inese omcials ought to be above suspicion and the people ought to hold them above suspicion. How can this be done ? By giving these officials pay sufficient to live uporf, and then make it a penal offense to give or receive a free pass over a railroad. Then the railroads would be under obligations to no one, and no one would be under obligation to the rail- roads. This would enable the rail roads to transport every passenger for a little less money. A railroad com mission with the proper power would look into all these evih and many others not alluded to in this paper, and would advise against their continu ance. Some motive always prompt the acts of a sane man. And so some underlying motive prompts the tender of these free pisses. L leave that mo tive to the honest judgment of the reader. I have been told by good authority that sometimes the railroads fail to send these free passes, and that they are very soon reminded of the matter. There are other things that railroads ought not .to be allowed to do. I have heard that several year 3 ago the town of Enfield, Halifax county, be came gready agitated because the railroad authorities threatened to move the depot outside the corporate limits of the town. Everybody had bought property, built and started business with reference to the location of the depot. But from some cause the authorities desired to change the loca tion; and I have been informed that a money consideration from the people of the town prevented the removal of the depot. When I was a young man there was a depot on the Wilmington & Weld on Railroad called Toisnot. There were several stores and dwell ings there. People had invested, built, started business because there was a depot at that point. From some cause the depot was moved a mile or a mile and a half down the road to a place less suitable for a depot than the first. The town died a natural death, and property became almost worthless. I remember that some years ago the depot in or near Asheville was located about seven or eight hundred yards, or perhaps farther, from its present location. I was informed that some trouble arose between a citizen and the railroad authorities; and, regard less of the rights of others who had bought lots and built there because it was near the depot, the railroad au thorities moved the depot. Without very good reasons these removals and attempts at removals ought not to have been allowed. Rail roads ought not to be allowed to establish depots and induce people to invest their money there and then pull up stakes and locate elsewhere without good cause. A railroad com mission could prevent these corpora tions from practicing such unbridled injustice upon the free citizens of the State. THE FARMERS KNOW THEIR BUSINESS. Some of the Georgia editors are ad vising their constituents to " give politics a rest " and go to work on their farms. We are disposed to think that this advice is meant to be humor ous only, and that the farmers, who do not stand in need of it, appreciate it as such. The fact is, they are not taking any undue interest in State politics just now. While, as a matter of course, they are alive to the issues of the hour, and naturally take a keen inter est in the political gossip that is going the rounds of the press, they are not losing any corn and cotton by it, not leaving any ground unbroken, or any seed unsown. This we infer from the accounts that come to us from all sec tions of the State of work mapped out by the farmers for the year; and if all signs do not fail which they are only said to do in dry weather the farm ers will do the hardest year's work of their lives in 1890, and will add to the prestige and plenty of 1889, a year whose bright abundance topped high their barns and storehouses and made their purses fat. No, they are not wasting any un necessary time in political discussion in the field or farm just yet; they are plowing and sowing; they are adding to their acres; they are strengthening the sinews of the great alliance; they are building cotton factories, and they are interested in every worthy enter prise which marks the industrial growth of Georgia and the South. Let them take as active an interest in politics as they will; it is their right to do so, as it is the right of other men; they are not likely to neg lect one duty for another, but as they have proven in the past, they will do their whole duty, now and in the future. And in the meantime, the grand old State of Georgia, with their aid, m politics and at home, is moving on to the music which means millions! Atlanta Constitution. j a b m i Paper horse shoes are being ex peri mented with in Germany. They are said to adhere better to the hoof than metal and to be very durable. As they become rough from usage they act as a security against slipping. It is thought they may supplant the metal shoe. 25. 1890 FARMERS' ALLIANCE AND IN DUSTRIAL UNION. FOR WARD, MARCH ! The Rock Islander (111.) says: That money is the creature of law is now admitted by all. The 5 cent nickle coins are composed of seventy-five parts copper and twenty -five parts nickle. A pound of this metal costs 70 cents. It coins 100 5 cent pieces which makes $5. Take 70 cents from $5 and $4.30 remains, all made by law. Toe Nonconformist (Winfield, Kan.): One hundred and thirty-six foreclos ure cases on the docket this term of court, said a member of the bar in our hearing the other day in this city. Kansas is a wonderful State, you bet. She can produce bigger crops of corn, wheat, mortgages, thieves and fools than any Stite in this grand and free country. Alliance Motor (Broken Bow, Neb.): A man can be longer starving to death on a farm than in any other business, but then we are not on the farm to feed the world and starve ourselves. We are there to succeed, by making a profit on what we produce. That is all we ask and that we demand. We have had enough of the starving busi ness; have done enough toward mak ing millionaires, and now intend to have a share of the profits. This is an age of trusts and combines, and we have trusted to combines long enough. NOW HOWL, ISN'T THE WAR OVER, NEIGHBOR? NO, NOT UNTIL 1907. The following is taken from the speech of Mr. Beaumont, made at St. Louis, to the Farmers' and Laborers' Union and is of itself a full charge of grape and canister fired into the bond holder: Mr. Beaumont says: "When the war was over they discharged the soldier. They told me the jig was up, laughter the fighting was all done and that they did not want me any longer. "But," said I, "you owe me something." " Qertainly," said the official, and I held out my hand and they paid me off in legal-tender paper money and I took it like a little man and I have yet to hear of a soldier that ever squealed about it, and all I ask the creditor of the government, the bondholder, is to display the same kind of patriotism and take his pay in the same kind of money. The gov ernment discharged a million of men. They all came home and found plenty of work at good wages. Why was this so? It was because there was plenty of money among the people. " That's why. There was over $2, 100,000,000 of money in circulation. When I got home they began to tell me that if the bondholder had not bought the bonds of the government we would not have been able to whip the rebels. And I for a long time thought that the statement was true. But when I came to examine the re port of the Secretary of the Treasury in June, 1865, less than sixty days after Gen. Lee surrendered, I found "that the total amount of 5-20 bonds that were purchased up to that date did not exceed $625,000,000. Now that is not the cost of the war, by any means, fellow citizens. Applause. Well, where did the money come from that enabled us to carry on the war? Why the government made the money to carry on the war. Now, one of the specie-basis fellows will sing out: " How did they get it out?'' Why we fought it out. Laughter. We fought out over two thousand millions. You remember the last year of the war the government paid us soldiers off in the 7-3 10 bonds with six little coupors on the end, and every six months we would clip one of them off and receive our interest on it. And at the end of three years it left the simple state of a greenback dollar to transact vour business. The government during the year of 1864 issued $830,000,000 of that kind of money and it was used by the people in transacting their business. Well, I want to talk to the old soldiers, when they were discharged, or after the war. How about the other fellow that enlisted when you did Mr. Money? Did they discharge him? Not a bit of it. Laughter. They put in a new recruiting officer. Who was that? Hugh McCullough. Who was he? Why he was the tail end of the banking firm of Jay Cooke & Co. What was their businesss ? Why, they said it was funding. What was that ? Why, it was drawing in these greenback dollars that we had faced death to get out and putting out in place of them a 6 per cent. bond. Cheers. And in 1873 this country was struck between wind and water with a panic, and we had $2,100,000, 000 of bonds, costing us over $100, 000,000 interest annually, and only $346,000,000 of legal-tender money No w, let us reason together. How does the soldier's account stand with the bondholder ? Listen carefully now until I relate it. To pay the sol diers every dollar of bounty from the time Fort Sumpter was fired on up to July, 1886, to pay every dollar of pension that has been paid from the time Fort Sumpter was fired on until July, 1886, $2,100,000,000. To pay the bondholder for services of money not since Sumpter was fired upon, but since Lee surrendered at Appomattox, April 9, 1865, to July 1886, $2,350,- " 'IIM" M, Mm i, . I ! 000,000, or $250,000,000 more than they paid in flesh and blood ior putting down the rebellion, and there has not been a battle fought in that time. Now did you ever see a bond with a leg or an arm off ? Laughter and cheers. Did you ever see one lie buried in a Southern grave ? Did you ever see any widow or orphan of a bond ? Now, what I want to know is this: If this bond has ever been shot, killed or wounded, what the devil is he pensioned for ? Loud laughter. Now I am not a pensioner, but if that money is to be pensioned for thirty years more, I want mine. I fought just as hard as Mr. Money. Laugh ter and applause. Again we have paid $1,150,000,000 of the interest bearing debt, since we were dis charged, and still have now in the ser vice of the government $250,000,000 whose term of enlistment will not ex pire until 1907, and we must continue to pay this pension until that time. Again do you know, after having paid over one-half of the principal of this debt, that it will take more bush els of wheat, more bushels of corn, more days' laor to pay the $1,000, 000,000 still due than would have paid the whole debt at the close of the war." OF IMPORTANCE TO FARMERS. It is to be noted that while the boards of trade and the exchanges are doing their best to suppress the bucket shops, they are not making any effort to put a stop to the gambling that is the basis of the bucket-shops. On the contrary, the boards of trade and the exchanges are suppressing the bucket shops in their own, and not the public's interest. The vast amount of gambling that is done in these small concerns they hope to transfer to their own establish ments. They are not trying to put a stop to gambling and speculation; they are trying to destroy competion. They know the volume of gambling and speculation will be as large when all the bucket-shops are closed as when they were running. . The important fact to farmers in connection with his speculative gamb ling, is contained in a statement re cently made by Mr. Pillsbury, the largest miller in the country. Mr. Pillsbury says that the indirect effect of this speculation in wheat, corn and other agricultural products is indi rectly ruining farmers, and he must be regarded as an authority on the subject, since his large interests in grain give him knowledge on the subject. Mr. Pillsbury says that the selling of a million bushels of fictitious wheat depresses the market just as much as if the actual production were increased that much, and what is true of wheat must also be true of corn and oats, and also of cotton. A fact of more significance to the country and of more importance to the farmers could not be conceived. This is a matter for the Alliance to take up and dral with. Atlanta Con stitution. Marion County Farmers' Alliance (Buena Vista, Ga.) The object and aim of the Farmers' Alliance and In dustrial Union, according to our un derstanding, is higher and grander than is generally considered by the majority. Our guns are not loaded for small game. We see no justice in the action of our government lending its aid to national banks and wealthy corporations, when the Kansas farmer is burning corn for fuel, while men, women and children are starving in the coal mines of Illinois and Penn sylvania. There is something radically wrong in this state of affairs, and we propose to ferret it out, even if it takes two winters and the best part of a summer. When a debating society meets and the question is up, "Does Farming Pay ?" and the spread eagle orator on the affirmative side has brought all his eloquence and logic to bear to prove his premises, we do not intend that it shall be answered and annihilated by his opponent rising and taking a shovel full of corn and throw ing it into the stove without uttering a word. Neither do we intend that the same grade of cotton, which sells on the streets of Buena Vista for 18 cents per pound, in January, shall sell in the same market for 8, 9 j, and 9 cents per pound in September, October and November. This applies with equal force to the Americus, Columbus and Savannah markets. The Climax (Mo.) Advocate. If the farmers and laborers are to be skinned, it makes but little difference which of the political parties skin them. They are both running "cheek by jowl " with national banking asso ciations. Hence, there is but one way out of their present dilemma, and that is to stand squarely upon their decla ration of principles and abolish this infernal system of legalized robbery. This hydra-headed monster is the head and front of all the accursed combines that are to-day sapping the wealth of this nation. Kill the head, and the tail will surely die. Thirteen years ago a young man commenced breeding sheep in Colorado with 500 breeding ewes. He has given his entire attention to sheep ever since. To-day he has 25,000 and his wool clip the past season brought him $20,000. f y - r-- j

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