m- - -
. k
. v ?''','
I
KB
r tv ?
I
h
0
fi i
v
and until the measure is finally enacted , it is im
possible to know that compensation, if any, will
be fixed, tfiut whether tho money is loaned at 1
per cent or Is loaned without interest, it is evi
dent that the banks receiving tho money can make
a large profit by loaning it. If, for instance, $300,
000,000 is loaned to tno banks at 1 per cent the
amount paid to the government would be four
millions and a half. If this money is loaned out
at 3 per cent, the banks' profit is four millions and
a halfj If it is loaned at 4 per cent the banks
make a profit of $9,000,000; if it Is loaned at 6 per
cont tho profit Is $13,500,000.
Tho banks that receive tho bonoflt of these de
posits can well afford to contribute to tho cam
paign fund of the party that continues them. At
the lowest rate suggested above tho banks would
make four millions and a half. If they can make
this sum each year for four years, ca they not
afford to give one" year's pront to insure four years
more? Is it not apparent that tho Aldrich bill
lays the foundation for an enormous corruption
fund? At the lowest possible rate at which- any
one will calculate the profit to the banks, the na
tional banks can afford to contribute more to the
campaign fund of the party that favors them than
can be collected from all tha people by any party
that opposes special privileges and seeks merely
tho equal rights of all. '
It may be added that tho Aldrich blil is ob
Jectionablo because -it permits the deposit uf mis
cellaneous assets, as a security 'or the loan of gov
ernment money First mortgage railroad bonds
under certain conditions are declared by the bill
to be sufficient to secure tho deposit of money.
Heretofore the government ., has protected itself
by taking its own bonds as securny for deposits.
While all the other objections made to this sys
tem are good against deposits, even when gov
ernment bonds are given as security, still the gov
ernment is protected, but in the caso- of the de
posit of miscellaneous securities the government
may or may not be secure. It i apparent that the
designation of bonds as suitable for security must
have a powerful i .fluence upon the stock market?
Is it wise or safe that the government should thus
connect itself with ttaJ stock exchange?
The congestion of money In' the treasury Is due
to tho collection of more taxes than the govern
ment needs. Why not reduce taxation? That
would be a protection again-.; any future surplus.
Tho surplus now on hand can be used buying up
the government's obligations. The purchase of
government obligations would not only stop inter
est, but would relieve the government of the em
barrassment which it'finds in having on hand so
large a sum of money. But the surplus on hand
would not bother tli government so much but for
the fact that 'there is a scarcity of money in the
co'untry. Wh'enever we attompl to increase tho
quantity of real money we are Uld that we do not
need any more money. Ab oon as this argument
Is forgotten tho banks begin clamoring for an op
portunity to use the government surplus and al
leging as an excuse that the money is needed in
tho channels of trade. It is possible to have
enough money to do business with and thus en
able the government to keep in tho treasury what
ever money it has on hand. This Is not only pos
sible, but it is desirable, for it avoids the various
questions which arise in connection with tho loan
ing of government money. Then too, if the money
is locked up in tho treasury the people who need
more money will be interested oth in increasing,
the volume of money and also in reducing taxa
tion. Where the money is hell in the treasury
powerful interests are ought to tho support of
tho people in their demand for a sufficient volume
of money and for t an economical government,
whereas these same ltere'sts are arrayed against
the -people when unnecessary taxes can be col
lected and the unnecessary surplus loaned out to
the financiers. The republican policy is to take
from the people money that ought to remain in
the peoplo's pockets and then loan the money to
The Commoner.
tho banks on the ground that the people need It.
Tho democratic policy is, first, to have a sufficient
volume of money to do business with; second, to
collect only so much as'Is needed for the economi
cal administration of the government, and, third,
to keep tho government money in the government
vaults, and avoid the evils that follow the loan
ing of government fdnds. By the way, are you not
now doing without legal authority what the Aid
rich bill is intended to authorize?
THE COMMONER.
jjj A
flanana.
After apologizing for the removal of- Miss
Todd, the postmistress at Greenwood, Del., Wal
ter Wellman, the Washington correspondent for
tho Chicago Record-Herald, says:
"At the same time the comment of tho
press generally, now that the affaix has at- .
tractod attention in all parts of the country, -is
so unfavorable to the huckstering of poli7
ticians in postofilces that it is regarded, as
quite probable President Roosevelt will soon.
that is, after the presidential election take,
steps to revolutionize the system and have
the fourth-class postofilces placed under tho
civil service."
It is interesting to bo assured by Correspon
dent Wellman that "it is regarded as quite prob
able President Roosevelt wii soon that is, after
the presidential eloction take steps to revolu
tionize tho system and have the fourth-class post
offices placed under the civil service."
Manana, manana, manana, seems to be a very
popular cry under tho republican administration..
"After the presidential election," tho republi
cans will revise the tariff.
"After the presidential election' tuo republi
cans will amend the currency laws.
"After the presidential election," the republi
cans will establisn the merit system to which Mr.
Roosevelt and republicans generally have pro
fessed devotion. -" ' -"
''After tho presidential election" but "after
the presidential election" there may 'be no re
publican party.
JJJ
The Supply of Carnegies. n
In an address delivered at Barrow-in-Furness,
England, recently and relating to the cost of pro
ducing steel billets in the United States, Andrew
Carnegie said:
"There have been made and sold without "
loss hundreds of thousands of tons of four
inch steel billets at three pounds for a penny.
. . . This was done during the day of depres-
- sion, when everything, was at the lowest.
Costs are several dollar per ton higher to
day, during this period of boom in America."
The Chicago Record-Herald in ltb issue of
September 3, commenting upon Mr. Carnegie's
statement, said:
"If we turn this statement into terms of
American money we discover that, according
to Mr Carnegie, four-inch steel bluets can
?ne.miidASnd S01? at a proflt a Pittsburg today
for $13 50 per ton, plus 'several dollars pet
ton 'Several' in this connection can hardly
mean more than 'three or four.' Let us be li
ttohmttfSL iwTe-' ,A profltabl Pce "or
per toi therefore not be over $18.50
nHo3en W,e turn t0 the Pittsburg price quo
w tSrn! SnVeif In the lasl nunber of the
OTlL S??nS?TIe7t,We flnd that the CUrrent
stifil hnipaUr"Inch, Bess.eraer ad open hearth
steel billets range from $27 to $29 per ton In'
$8U50r torsd10'50henPPrdllCOr8 are S5nS froS
SmimS hi! Per ton, moro than thy can
makfi yAnT !nl g00d commercial cla,.n to
SSm wh? ? that ?rlCGS arG off Bomo ?6
J1 aJ tllGy werG last spring.
Rfom M r Carnefii9 thinks that the day of cheap
steel is over. 'It is doubtful,' he says 'if ever
a lower price can be reached for steel ' On
the contrary there is every indication that
period after period the priceof steel s to be-
w , owing to the lack of raw ma
rt thS,n!ilS?t?nceB the unfortunate Sso
ot the United States steel' corporation -whfph
Famines.01117 " TO $ 2;
&
'..VOLUME 3, NUMBER
. Most Amcricanswill bo willing to B,
their chances -with the supply of J tako
-terial.' It is when the supply of Carnal m?
considered flmf nrumimio1 . fa.rnegjes la
considered that: Tinsafrnw . L Regies 18
course of prices will seem to them justft
So long as -human nature remains unchain
"the supply of Carnegies' will be practical! in
exhaustible, provided there be a political orJ,T
zation, like the republican- party, having the power
and the disposition to extend to individuals tho
special privileges in the possession of which tho
Carnegies obtain riches beyond calculation.
Most A: ricans would, indeed, be willing to
tako their chances with the supply of "raw ma.
terial." And if powerful newspapers like the
Record-Herald would abandon the support of a
political organization that extends special priviU
eges at the .expense of the people, that takes
money out of tho nockets of the many to place it
in the pockets of the few, then there would be no
justification fbr pessimism even in the contera
plation of "the- supply of "Carnegies."
As long as the wrld stands there will ba
men ready and willing to take advantage of their
fellows and to thrive by imposition upon tho
public; and men IMce Carnegie will grow rich and
thrive, just as Carnegie grew rich and thrived, so
long as men like the editor of the Record-Herald
content themselves with pr sting against im
positions upon the people between election day9
while they go to the ballot box and cast their
vote for the party that is responsible Tor those
impositions and boldly acknowledges its determU
nation to pursue its evil course.
JJJ
Mr. Shaw as a Legislature.
Secretary Shaw has deposited the sum of ?2,
500,000 in the national banks of St Louis, the samo
to be secured by the deposit of state and munic
ipal bonds rather than by government bonds.
-The purpose of the -Aldrich bill was to sub
stitute for government bonds, as. security for gov
erriment deposits, state bonds, municipal bonds,
or first mortgage bonds of railroads. By accept
ing state and municipal bonds in lieu of govern
ment bonds, for the deposits at St Louis, Secretary
Shaw has practically put in operation the provi
sions of the Aldrich bill, a measure that has not
yet been passed and against the passage of which
many republicans are protesting.
The Washington correspondent for the St
Louis Republic points out that Secretary Shaw'9
action in St. Louis differs in several respects from
his action last year in accepting such security for
public deposits. This correspondent analyzes Mr
Shaw's action in this way:
"A year, ago the secretary was anxious
to obtain an increase in the 'national bank
circulation, and he did so by allowing deposi
tory banks to substitute state, and municipal
bonds for part of the United States bonds
they had on deposit to secure public moneys
held by them, and they were then required to
take out circulation based .on the United
States bonds thus released. The stato and
municipal bonds were then accepted as se
curity for ceposits to an amount equal to
three-fourths of their par value.
"In making tho St Louis deposits tho
secretary does not require the banks to sub
stitute the state and municipal bonds for
United States bonds already deposited by
them with tho treasury. If ho had done so,
the result would not have been to afford se
curity for any additional amount of deposits,
but there would have been a simple chang
ing of one form of security for another.
Neither does ho require tho banks to tako out
additional bank-note circulation.
If, without the authority of law, Secretary
Shaw may substitute state and municipal bonds
for government bonds, he may also substitute first
' mortgage railroad bonds; and when ho has done
that ho will have carried out, practically, the pro
visions of tho Aldrich bill. But we are told that
in accepting state and municipal honds, as buD
stitutes for government bonds, Mr. Shaw does nl
require the favored bankers to take out circular
4