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The Commoner
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the necessity of' keeping a reserve against the
- government doposlr,. This gave them quite a margin
rfbovo their legal, resorvo. In addition to this, Sec
rotary Shaw has enlarged the basis of security re
quired 'of banks. Formorly a bank had to deposit
feovornmont bonds. Now, according to the now
ruling, the bank can deposit other securities, such
as state and municipal bonds. It Is easy to
moasuro tho enormous privileges thus conferred
upon .the banks. If, for instance, a bank has a
million dollars' worth of bonds which It uses as a
security for government deposits it can now use
these deposits to purchase a million dollars' worth
of state or municipal bonds and substitute these
for tho government bonds. It thus has its bonds
(and thoy 'usually draw a hlghor rate of interest
than government bonds) and it makes & larger
profit out of tho benevolence of tho treasury de
partment. Having substituted other bonds for its
government bonds tho bank can now, under tho
law, secure a million in banrf notes and loan out
its money at the market rate while it draws In
terest on tho bonds and pays a fraction of ono
. per cent as a tax to the government
Tho national bank currency system is a source
of profit to tho banks- and they can well afford to
contribute liberally to the republican campaign
fund in order to retain tho advantage, but why
Bhould the ordinary republican vote tax himself
for tho purposo of giving this unueserved aid to
a few banking corporations? If tho ordinary re
publican buys a government bond ho is out the use
of his monoy and must be content with tho In
terest on tho bond, but' an extraordinary republi
can engaged in the national banking business can
turn his bond into tho bank with pther bonds and
tho bank, can doposit the bond with the treasury
department and get the face value of the bond In
bank notes and still draw Interest on the bonds
besldds. The ordinary republican can either eat
his cako or keep it; tho extraordinary republican
can eat his cako and keep it, too.
Not content with this great advantage the
bankers have been demanding and receiving a
large profit in tao way of the free use of govern
ment money, and all of the steps taken by Secre
tary Shaw have been in the direction,, of enlarging
tho privileges and profits of uio national banks.
If the ordinary republican, in his desire to nfake
his money as profitable to hini as possible, loans
out so much, tuat he hasn't enough. tq.rjin him"
-through" tho winter), the .government' doesn't rush
td his afd and correct "hi$ errors to'spLve Him frbm
"stringency fn his financial matter, but the ex
traordinary republicans who control national
banks can loan out their reserves, thus increasing
their profits, and rely, upon the favors of the gov
ernment in every time of need. If monoy rates
run up the treasury promptly supplies them with
money to loan at wo greater rate, and really
, makes it to their pecuniary, advantage to bring a
recurrence of such condition, not to speak of the
speculative advantage which can bo found in an
unsteady market.
Whether the secretary has violated the law in
his effort to rescue the banks is a question which
will probably be discussed when congress meets,
hut that he is running the treasury department
in tho interest of Wall street is a question, which
is not open to dispute. Whether his action will
frighten depositors ana lead to further withdraw
als remains to bo seen, but he has certainly done
enough to frighten tho rank and file of the party
and show them that our government, instead of
being administered as - government of tho people,
by the people and for tho people, is really admin
istered as a government of the corporations, by
the corporations and for the corporations. The
republican voter, however, can be consoled. Ho
can imagine himself in partnership with the big
republicans of Wall street and ho can use WE
in speaking of tho prosperity although the Wall
street end of tho p' -tncrship gets the lion's sharo
of the privileges and profits.
JJJ
George Fred Williams' Platform.
Tho Springfield Republican, by no means a
partisan of tho Kansas City platform, takes the
side of George Fred Williams in his fight for the
. indorsement of that platform and commends his
presentation of local Issues. The reorganizing ele
ment of the party that had pleaded so earnestly
for harmony, laid aside all restraint when it found
that it had by deception secured a majority of tne
delegates, and not only refused to reaffirm the
Kansas City pi .form, but refused to deal in an
honest and straightforward way with state issues.
The Republican, after praising Mr. Will
iams for his manly fight, and after warning the
. reorganizers to prepare for a contest at the pri
maries next year, sets rorth that part of the Will
iams platform which deals with state issues. Mr.
Williams applies tho principles of the Kansas City
platform to all question, national and local, and
tho platform which lie presented was characteristic
of himself as well as in line with the methods pur
sued by thoso who gave to the country the Chi
cago and Kansas City platforms.
After an indorsement of the Kansas City plat
form the Williams platform reads as follows:
Firstmat the power of the people be
extended so that laws may be made-and legis
lative enactments Vetoed by direct vote at the
polls.
Second A prohibition upon Judges in
equity Ho create offenses, and then try of
fenders without jury and sentence them with
"out right of appeal".
Third Taxation in nation, and state
which shall require full contribution from
wealth and bear as lightly as possible on labor
and the poor.
Fourth The repeal of tariff duties which s
protect monopolistic trusts and the reduction
of the tariff to a revenue basis.
Fifth Liberty and self-government ev
erywhere under the stars and stripes.
SixthThe enactment and enforcement of
drastic criminal laws against monopolistic
' trusts. 9
Seventh The public ownership or control
of public utilities. '
Eighth An eight-hour day for all labor.
Ninth Stringent laws to prevent the use
of patronage of corporations to influence leg
islation or political actions
Tenth Honest-reciprocity with other na
tions, especially with Canada and Cuba.
Eleventh State co-operation with the na
tional government for tho speedier improve
ment of Boston harbor.
Twelfth The arbitration of industrial dis
putes such as the present coal strike.
Thirteenth Not only just laws, but a: :
party which means to enforce them.
The Tariff's Changing Defense.
Republican orators af o in the habit of defend
ing a high tariff as if it had always been a re-
.publican .docfrinQ, and, as if it were always justi-
fled by the same .argu,merits. A&Jl matter "of fact
, th.e first, national ptyttbrjH ' writtenby-lihc'TepuDlI-'can
party the piatfbrrii of I860 tlltl nbi mention
a high tariff, That platform was written at a
time, too, when the people were enjoying a low
tariff, but the republican leaders did not see fit
to suggest protection as a necessary thing.
The victory -Won by tho republicans in 1860
was not won on the high tariff issue.
When the civil war broke out and the govern
ment needed more revenue the tariff was raised
as a war measure, but the manufacturers were not
willing to have the rates reduced when peace "was
restored.
A new reason had to be found and Clay's-argument
was brought forward, namely, that in
fant industries must be protected for a short time
until they were able to stand upon their feet
This argument ud service in several national
campaigns. It was answered in 1876 by the elec
tron of Mr. Tilden, and in 1884 by tho election of
Mr. Cleveland.
In 1888 the infants had grown so large that '
they could not only stand upon their own feet,
but they could run all over other people's feet,
and it became necessary to manufacture a new
defense. And wnat was it? Well, they said that
a high tariff was not so much a temporary policy
designed to assist infants as a permanent policy
intended to give manufacturers an advantage over
foreigners, just equal to the difference between the
wages paid here and abroad. The republicans In
sisted upon comparing wages per day when they
should have compared wages per piece (and thus
make allowance for the greater efficiency of Amer
ican labor) and under the pretense that they were
p ' securing just enough to' cover the difference in
labor cost the manufacturers obtained a tariff
sufficient to cover . the entire amount paid to
American workingmen, and in many Instances
double that amount. Tho manufacturers wrote
the law themselves and appointed themselves
trustees without bond; they secured, for them
selves an enormous profit, but were hot com
pelled to divide with the wage-earners for whoso
benefit they asked protection.
But now wo are exporting .an ever increasing
number of articles and certainly no one can say
that we need a tariff to protect industries which
can pay ocean freight on their output and compete
in foreign markets with the "cheap labor", of the
Whole .world. . ...
The trusts rre hiding Jiehlnd V high tariff
wall and demanding extortionate prices from peo-
s - " VU i?No. 38.
plo In this country, while foreigners are given hot
tor, treatment- than American citizens. A new
argument is necessary, and what .will it be? It ha
already been suggested, namelythat the benefit
laries of protection must stand together and object
to any reduction anywhere. u.ney cannot defend
each schedule on its merits they will not try
they will simply insist that the tariff' must be rZ
formed, if at all, "by its friends," which means
that it will not be reformed. Tho republican
voters have supported the uoctrlne of protection
under the delusion th:.t they were performing a
patriotic duty; they have accepted tho statements
of the manufacturers without examination and
have felt a-sort of partnershfp in the industries
protected, but they are beginning to learn that
they have been made the victims of a confidence
game. They are beginning to learn that the manu
facturers who, during each session of congress
approached that body as mendicants and begged
for legislation which they claimed was necessary
to save them from bankruptcy-nthat these manu
facturers not only have larger bank accounts than
the taxpayers upon whom they have imposed, but
have conspired together to form monopolies for
the plunder of their benefactors.
TA!gb.tis breaklng. In Speaker Henderson's
district the farmers and business men are already
in revolt and the revolt will spread. On the tariff
question, as on all other questions, the republican
policy discriminates against the many and in favor
of the few, and the masses will ultimately register
a protest that will be effective.
The South DakotaCampaign.
. The readers, of The Commoner will be inter
ested in tho following' report of the South Dakota
campaign, taken from the Sioux Falls' Daily Press
one of the leading fusion papers of that state.
Chairman Johnson, of the state democratic
committee, upon whom also devolves the -work
for the populist party, announces the estab
lishment of campaign headquarters at Armour,
Mr. Johnson?s home, and the .appointment of
H. H. Smith, -formerly of Sioux Falls, as sec
retary of the committee. Another democratic
headquarters has, bqen opened .at Aberdeen,
. under chargef, Major C. Boyd Barrettf the
state committee who; wilC cover that vendv,bf
v- the state. Having musalrrnged matters tlio
-real work of the campaign Will now ufcgln on
the part of the democratic forces, which means
the fusion forces, under the agreement made
at the Huron conventions.
Republican state headquarters have not
yet been established, although Chairman
Crane has announced his intention of locating
in Sioux Falls and is expected to be here
shortly, equipped for the business devolving
upon him and his associates. His committee
is fully organized and the presumption is that
"it will become active about the middle of
September.
This is the present status of the campaign
in South Dakota for tho fall, of 1902. By fol
lowing the narrative, the reader will see that
it has not progressed beyond preparation, ex
cepting that the democrats are giving the peo
ple something to read.
JJJ '
Right vs. Might. :
On another page will be found the statements
of Mitchell and Baer. Seldom have right and
might been so rlainly contrasted. Mitchell has
immeasurably strengthened himself and his cause
by his willingness to submit to arbitration, and
Baer has increased the contempt which former ut
terances have excited. His impudent and insolent
assumption of divine authority to control the fuel
of the people ought, in his opinion, be supported by
the United States army. He recognizes no obliga
tion to others, but feels that the government is in
duty bound to take his side of the controversy.
The issue is now made and the president
must take sides. Tho people have .already taken
sides they are with the strikers.
JJJ
Anti-Imperialists Stil are Active.
A report was recently sent out from the Y east
to the effect that the anti-imperialists had an
nounced themselves as satisfied with Mr. Roose
velt's position on the question of Imperialism, and
that they would give up further agnation. Of
course such a rumor is absurd because the presi
dent has neither said nor done, anything that
would justify, an indorsement of hia course by any
one who is opposed to a colpnfal system. 'He Is
not only imperialistic in sentiment and method,
f