The History of Banking Fraud:
Chapter 14
NATIONAL BANKS AND THE ADMINISTRATION COMBINE TO ISSUE
BONDS IN TIME OF PEACE.
The Coming Battle
By M. W. WALBERT, 1899
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"Avoid the accumulation of debt, not only by shunning occasions of
expense, but by, vigorous exertions in time of peace to discharge the
debts which unavoidable wars may have occasioned, not ungenerously
throwing upon posterity the burdens which we ourselves ought to bear.
"-Washington.
Ever since the special session of Congress, beginning on the 7th of
August, 1893, the national banks of New York City continuously bent all
their energies toward depleting the gold reserve of the Treasury and
forcing an issue of bonds.
Without the active co-operation of these associated banks, it would have
been impossible for the gold speculators to have obtained the greenbacks
and treasury notes to present to the Treasurer for obtaining the gold for
exportation to Europe. As the national banks of New York City persevered
in the policy of hoarding up all greenbacks and treasury notes, that found
their way over their counters in the ordinary transactions of business,
the means of exhausting the gold reserve were practically unlimited. In
fact, more gold was actually shipped abroad than was needed in Europe. It
was asserted by unquestioned authority, that these banks exported tens of
millions of gold to Europe, and that it was returned without the packages
containing it ever having been opened; and that this policy was carried on
by the banks, with the avowed intention of compelling Congress to fund the
greenbacks and treasury notes into bonds.
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One of the reasons stated by the President in his message of August 8,
1893, was, that the purchasing clause of the Sherman law must be repealed,
as the only remedy to check the exportation of gold. This was the sum and
substance of all the arguments, advanced in both Houses of Congress, by
those who urged the repeal of the Sherman law.
These reasons and arguments were the merest subterfuges of those public
men who were determined, at all hazards, to manacle the American people to
a single standard of gold, and to make all business pay toll at the
counters of national banks.
As heretofore stated, the gold gamblers persevered in draining the
Treasury of its gold during the time that the repeal bill was pending in
Congress, a policy which was upheld by the subsidized press. Every
withdrawal of gold was given prominence, in these journals, as a means of
frightening the timid.
As shown by a report of the Comptroller of the Currency, the national
banks of New York City, on the 2d of October, 1894, held gold coin to the
amount of $175,000,000, in addition to legal tender notes or greenbacks to
the amount of $185,000,000. On the 19th of December, of the same year, the
bank holdings of legal tenders had decreased to $119,513,000.
These figures demonstrate that, while the banks held $175,000,000 in gold,
they had used their legal tender notes, or greenbacks, in looting the gold
reserve to obtain gold to buy these bonds.
In speaking of this course of the bankers in thus forcing an issue of
bonds, the New York World editorially said:
"The banks have no apparent use for gold.
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"They have absolutely no obligations of any kind, near or remote, which
are payable in gold.
" Nevertheless these banks are hoarding gold in large quantities, at a
time when to do so is to subject the Government to heavy and needless
expense.
"Thus the clearing house banks of New York alone, hold over $81,000,000 in
gold for which they have no use, "
In referring to the immense holdings of gold by the New York banks, the
World further said:
"If they should turn it into the Treasury and take greenbacks instead,
they would be in every respect as well equipped as now to meet their
obligations, while the Government would not have to issue another
$100,000,000 of bonds, which it will cost the country $220,000,000 to pay,
principal and interest.
"Are they seriously expecting gold to go to a premium?
"Or are they and the banks all over the country in a tacit "combine" to
compel repeated bond issues for their speculative profit? These banks
ought to answer these questions. "
On the following day, the World, in speaking of the answers of the New
York bankers to this accusation, editorially said:
"Their replies are evasive, shifty, insincere.
"They have no obligations payable in gold.
"There is no possible reason for them to hoard gold, except that they
expect a premium upon it, or that they wish to force the Government to
borrow money which it does not need.
Although the World was an advocate of the gold standard, yet it did not
hesitate to censure the banks of New York City for their traitorous
attempts to cripple the United States. With renewed energy, the banks
persevered in their attack upon the gold reserve, and from the 17th day of
January, 1895, to February 13th,
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they drew gold out of the Treasury to the amount of $38,262,540. In a
single day, January 25th, they drew Out $7,156,046, although at that time
these identical banks held a stock of gold exceeding $100,000,000.
The influential journal of Commerce, charged that the New York banks,
owing to their combined policy to cripple the Government, had purposely
caused a needless and artificial scarcity of gold to the amount Of
$503,000,000.
On February 4, 1895, it editorially said:
"WHY MUST WE BORROW?
"1. Because, while up to 1892 the banks supplied all gold required for
export, since July 1, 1892, they have drawn for that purpose from the
Treasury, two hundred and thirty millions.
"2. Because, within the same period, the banks have withheld gold from
customs, payments which, under their former usage, would have given the
Treasury a gold income amounting to two hundred and seventy-three
millions.
"3. Because, within the last thirty-one month,;, the Treasury has suffered
from this policy of the banks a direct and indirect artificial gold
depletion of five hundred and three millions.
"Here, in a nutshell, is the explanation of the condition of the Treasury
and of the causes compelling its virtually needless loans."
On the other hand, the New York Times, with its accustomed loyalty to the
money power, urged these banks to coerce Congress to do their bidding. It
said:-
"But we close, as we began, with the unqualified statement that Congress
will not do this-that it will not do anything, unless it be forced to
action by the overwhelming pressure of public opinion. It is sheer folly
to rely on anything else. This force organized,
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directed, and concentrated upon Congress, as it was in the spring of 1891,
when the free coinage bill was killed, as it was in 1893, when the repeal
bill was enacted, will do the work. Nothing else will."
Since the repeal of the purchasing clause of the Sherman law up to this
time, gold to the amount Of $172,000,000 was withdrawn from the Treasury,
despite the fact that President Cleveland, in his message of August 8,
1893, gravely declared that the repeal of the purchasing clause of the
Sherman law would stop the depletion of the gold reserve.
On the 17th day of January, 1894, the Secretary of the Treasury invited
bids for the sale of bonds to strengthen the gold reserve. The amount
offered was fifty millions for sale, and delivery was to be made February
3d.
At the time of this sale of bonds, the banks of New York City held many
millions of gold, but, instead of using their holdings to pay for these
bonds, they presented treasury notes, and drew out of the Treasury
$20,211, 000 in gold to take up these bonds.
Therefore, while these banks were demanding issues of bonds to maintain
the public credit; they utilized this very issue as a means to further
deplete the Treasury of its gold.
The Secretary claimed that, under the provisions of the Resumption Act, he
had full authority to issue bonds for the redemption of the greenbacks.
The gold reserve, thus expanded beyond the one hundred million dollar
mark, was again attacked by these conspirators with the evident purpose of
forcing gold to a premium, and to compel an additional issue of bonds.
The gold reserve again began to melt away, and, on
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November 13, 1894, the Secretary of the Treasury advertised for bids for
the sale of an additional $50,000,000 of 10-year 5 per cent. bonds. Four
hundred and eighty-seven bids were received for these bonds so offered.
To pay for these new bonds, immense quantities of gold were again
withdrawn from the Treasury. United States Senator Gray, a gold standard
champion, admitted this fact in a speech in which he stated that, from
December 1, 1894, to February 13, 1895, $80,785,000 was exchanged for
treasury notes, of which only $36,852,389 was exported.
As a matter of fact, a large amount of this was hoarded for future
purchases of bonds.
On December 5th the reserve bad been expanded to $111,142,021, and
immediately this gold reserve, thus freshly built up by this second sale
of bonds, was again attacked by the New York bankers, by exchanging
greenbacks for gold at the sub-treasury in New York City.
In the beginning of February, 1895, the withdrawal of gold became greater
than ever before known, and the banks openly avowed their intentions to
force a third issue of bonds. Meanwhile, it was rumored in Wall street,
that the Secretary of the Treasury had secretly negotiated a sale of bonds
to Messrs. Belmont and Morgan.
In speaking of both of these facts, the New York Press, of February 7th,
said:--
"Gold To Buy Bonds-Wall Street Ready To Rob
Treasurer Peter To Pay Paul.
"Fully $700,000 in gold coin was withdrawn from the sub-treasury
yesterday. While this is not a large
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amount as compared with other days, it is significant and suggestive. It
means nothing more or less than that the banks and trust companies in the
city are preparing to take up a considerable portion of the prospective
bond issue.
"But it is more than likely that the banks will get even with the
Government after all. The quiet gold hoarding that is going on just now
means that this money is to be used to buy the new bonds, and after they
are once obtained, it will be a comparatively easy matter for the
purchasers to replenish their vaults and safes, with practically the same
coin again by means of legal tenders. In short, it is only another
instance of Peter being robbed to pay Paul.
NO ISSUE AT PRESENT.
"Both Mr. Morgan and Mr. Belmont were at their offices yesterday, which
gave color to the report that everything was "fixed" so far as the new
issue is concerned. Mr. Belmont declined to be interviewed, and Mr. Morgan
had only this to say for publication: `I am satisfied that no announcement
of a bond issue will be made until after a vote in the House on the
Springer bill. I am also satisfied that President Cleveland and Secretary
Carlisle are keenly alive to the situation."
On February 8, 1895, the Secretary of the Treasury negotiated a secret
contract with two great banking houses of London, England, for the sale of
$62,000,000 Of 4 per cent. thirty-year bonds.
The text of the infamous contract is as follows:
"CONTRACT.
"This agreement entered into, this 8th day of February, 1895, between the
Secretary of the Treasury of the United States, of the first part, and
Messrs. August Belmont & Co., of New York, on behalf of Messrs. N. M.
Rothschild & Sons, of London, England, and themselves, and Messrs. J. P.
Morgan & Co., of New York, on behalf of Messrs. J. S. Morgan & Co., of
London, and themselves, parties of the second part.
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"Witnesseth: Whereas it is provided by the Revised Statutes of the United
States (section 3,700) that the Secretary of the Treasury may purchase
coin with any of the bonds or notes of the United States authorized by
law, at such rates and upon such terms as he may deem most advantageous to
the public interests, and the Secretary of the Treasury now deems that an
emergency exists in which the public interests require that, as
hereinafter provided, coin shall be purchased with the bonds of the United
States, of the description hereinafter mentioned, authorized to be issued
tinder the act entitled `An act to provide for the resumption of specie
payments, approved January 14th, 1875, being bonds of the United States
described in an act of Congress approved July 14th, 1870, entitled `An act
to authorize the refunding of the national debt.'
"Now, therefore, the said parties of the second part hereby agree to sell
and deliver to the United States 3,500,000 ounces of standard gold coin of
the United States, at the rate of $17.80441 per ounce, payable in United
States 4 per cent. thirty-year coupon or registered bonds, said bonds to
be dated February 1, 1895, and payable at the pleasure of the United
States after thirty years from date, issued tinder the acts of Congress Of
July 14, 1870, January 20, 1871 and January 14, 1875, bearing interest at
the rate of 4 per cent. per annum, payable quarterly.
"First, Such purchase and sale of gold coin being made on the following
conditions:
"1. At least one half of all coin deliverable hercin under shall be
obtained in and shipped from Europe, but the shipments shall not be
required to exceed 300,000 ounces per month, unless the parties of the
second part shall consent thereto.
"2. All deliveries shall be made at any of the subtreasuries or at any
other legal depository of the United States.
" 3. All gold coins delivered, shall be received on the basis Of 25.8
grains of standard gold per dollar, if within limit of tolerance.
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"4. Bonds delivered under this contract are to be delivered free of
accrued interest, which is to be assumed and paid by the parties of the
second part at the time of their delivery to them.
"Second, Should the Secretary of the Treasury desire to offer or sell any
bonds of the United States, on or before the 1st (day of October, 1895, he
shall first offer the same to the parties of the second part; but
thereafter he shall be free from every such obligation to the parties of
the second part.
"Third, The Secretary of the Treasury hereby reserves the right, within
ten days from the date hereof, in case he shall receive authority from
Congress therefor, to substitute any bonds of the United States, bearing 3
per cent. interest, of which the-principal and interest shall be
specifically payable in United States gold coin of the present weight and
fineness for the bonds herein alluded to; such 3 per cent. bonds to be
accepted by the parties of the second part at par, i. e., at $18.60465 per
ounce of standard gold.
"Fourth, No bonds shall be delivered to the parties of the second part, or
either of them, except in payment for coin from time to time received
hereunder; whereupon the Secretary of the Treasury of the United States
shall and will deliver the bonds as herein provided, at such places as
shall be designated by the parties of the second part Any expense of
delivery out of the United States, shall be assumed and paid by the
parties of the second part.
"Fifth, In consideration of the purchase of such coin, the parties of the
second part, and their associates hereunder, assume and will bear all the
expense and inevitable loss of bringing gold from Europe hereunder; and,
as far as lies in their power, will exert all financial influence and will
make all legitimate efforts to protect the Treasury of the United States
against withdrawals of gold pending the complete performance of this
contract.
"In witness whereof, the parties hereto have here-
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unto set their bands in five parts, this 8th day of February, 1895.
J. G. CARLISLE,
Secretary of the Treasury.
August Belmont & CO.,
On behalf of Messrs. N. M. Rothschild & Son,
London, and themselves. .
J. P. MORGAN & CO.,
On behalf of Messrs. J. S. Morgan & Co., London,
and themselves.
Attest:
W. E. Curtis.
Francis Lynde Stetson."
If any citizen of the United States doubts that there is a great
international gold and bond trust, seeking to bind the world to its golden
chariot, let him read this notorious contract and be convinced of his
error.
A construction of this contract discloses the following remarkable facts:
First, that two American banking companies of New York City represented
two great banking houses of London, England, and Secretary Carlisle
presumably the United States. Second, the gold coin so purchased should be
paid into the Treasury at the rate of 300,000 ounces per month, except
these foreign firms should agree to make larger monthly payments, One half
of this gold was to be obtained in Europe. Third, the Secretary of the
Treasury bound himself not to offer or sell ally bonds of the United
States to any other parties, on or before the 1st day of October, 1895,
without first offering all such bonds to this foreign syndicate. This
placed the Government at the absolute mercy of alien bankers, and was a
most cowardly surrender of the interests of the people to a foreign gold
trust. Fourth, the Secretary of the Treasury reserved the right to
substitute bonds
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specifically payable in United States gold coin, provided Congress should
confer authority upon him to make such substitution. The purpose of this
clause in the contract was, should Congress consent thereto, to issue
bonds specifically payable in gold coin, and thus commit the country to an
issue of gold bonds. Therefore, should the United States issue an
obligation specifically payable in gold, this example would be followed by
every creditor, and every mortgage, bond, note, or other security or
evidence of debt, would become a gold obligation, and the nation and its
citizens would be bound hand and foot, and delivered over to the tender
mercies of the national banking money power and the international gold
trust.
Is there an international gold trust? Clause five of paragraph four of
this contract is an explicit acknowledgment on the part of the United
States, that there is such an institution. That clause is as follows: "In
consideration of the purchase of such coin, the parties of the second
part, and their associates hereunder, assume and will bear all the expense
and inevitable loss of bringing gold from Europe hereunder; and as far as
lies in their power, will exert all financial influence, and will make all
legitimate efforts to protect the Treasury of the United States against
the withdrawals of gold, pending the complete performance of this
contract.
Think of it! This great nation having resources far exceeding the whole of
those of Europe, with a population of seventy millions of energetic
people, ascertaining that its Secretary of the Treasury had bought the
protection of a foreign bond syndicate!
Let them further ponder, that this syndicate consid-
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ered itself so powerful, that it could protect the Treasury of the United
States against the withdrawals of gold therefrom.
In speaking of this transaction, the New York Tribune asserted that this
syndicate could control the money of the world. It said:
"No plan that did not provide for getting gold from Europe, and that did
not also provide a means to check shipments of gold to Europe, could give
the Treasury one dollar of permanent relief. This undertaking to change
the whole course of exchange, must necessarily be expensive, but the
syndicate can do it, and the Treasury is accordingly benefited."
As a result thus far of President Cleveland's warfare upon silver, we find
that this high public officer, who wanted the purchasing clause repealed
to check the withdrawal of gold from the Treasury, made an unconditional
surrender to the international gold trust. He sought to buy its
protection.
The bonds so issued under this secret contract were sold at a premium of
only four and one-half cents on the dollar. At that time, the same class
of bonds having but twelve years to run, sold at a premium of ten and
one-half cents. In the meantime, it was rumored that the administration
had entered into a secret negotiation with this syndicate, and on the 8th
of February, 1895, President Cleveland transmitted this contract to
Congress, accompanied by a message, in which be requested permission of
Congress to substitute a 3 per cent. gold bond in lieu of the bonds so
sold to this syndicate. Immediately upon the appearance of this message in
the House, Mr. Wilson, of West Virginia, reported a joint resolution
authorizing the Secretary of the Treasury to issue gold bonds to the
amount of
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$65,116,275. At the same time, a similar bill was introduced in the Senate
by Mr. Vilas, of Wisconsin.
During the debate on these measures, it was pointed out by the silver
advocates that the 4 per cent. bonds sold to this syndicate were worth
$1.19½, although they had been sold at $1.04½, netting the syndicate a
profit of not less than $10,000,000 by this transaction. It was also
charged that the administration had sold these bonds to the banking houses
of Rothschild and Morgan at this low figure, with the express purpose of
depreciating the national credit with a view of forcing an issue of gold
bonds.
The attempt to force the Wilson resolution through the House failed by the
decisive vote of 167 nays to 120 yeas.
The absurd pretense put forth by President Cleveland and his adherents,
that the national credit must be strengthened by substituting the term
gold, for that of coin in its obligations, was fully exposed by subsequent
events.
Ten days after the issue of the original bonds, nearly thirty millions of
them were sent to London to be sold by the syndicate. In twenty-two
minutes after these bonds were placed on the market, the subscriptions for
them amounted to ten times the sum total of the bonds.
To-day, these bonds that were thus disposed of by this nefarious contract
to a foreign syndicate at $1.04 1/2, are now worth $1. 29 1/2--being an
advance of twenty-five cents on the dollar!
Again the bold attempt of President Cleveland to fasten the gold standard
on the country ignominiously failed.
On February 7, 1895, one day previous to the com-
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munication of the bond contract, House bill 8,705 was brought forward in
the House of Representatives. This measure proposed to authorize the
Secretary of the Treasury to issue $500,000,000 of bonds to maintain a
sufficient gold reserve, and to redeem and retire United States notes.
These repeated attempts of the administration, and its satellites in
Congress, to burden the people with an enormous bonded indebtedness, is
one of the most remarkable phenomena in all history. It seemed that the
whole energy of President Cleveland was directed with an eye single to
loading down the country with a vast perpetual debt, even though it would
ruin the party which had honored him so frequently., He unscrupulously
used the immense patronage of his office to force his measures through
Congress, but beyond securing the repealing of the purchasing clause, he
failed in every instance to coerce Congress into submission to his will.
He likewise failed in this proposed bond measure, for, on a motion to
engross the bill and pass it to a third reading, it was defeated by a vote
of 162 nays to 135 yeas.
In a few months after the secret bond contract with the Morgan Rothschild
syndicate, the attack upon the gold reserve began anew, as the bank of
England bid $4.91 for gold, being equivalent to a premium of one per cent
on the dollar. Whenever the bank of England desired to increase As stock
of gold, A raised the price at its counter, and this policy attracted gold
from all over the world. The usual exchange value of a British sovereign
in gold is $4.86, therefore, by raising the price to $4.91, it gave notice
to all the world that it was offering a premium for gold.
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In August, 1895, while the rate of exchange stood at $4.91, the New York
bankers raided the reserve to obtain gold to ship to London for this
premium. In that month, $15,000,000 was withdrawn from the Treasury and
exported to that country. In the following month, the high rate of
exchange still continued, and the gold gamblers of Wall street drew
$16,000,000 out of the Treasury for exportation. This process still
continued, and, in the meantime, the administration opened negotiations
with the banking house of J. P. Morgan & Co., for the disposal of
$200,000,000 of thirty-year 4 per cent, bonds at private sale,
This brazen attempt of the administration to again sell bonds at private
sale to this syndicate, at a figure away below the market price, brought
forth such a storm of indignation and protest that even President
Cleveland quailed before it.
Therefore, on January 6, 1896, Secretary Carlisle issued a circular,
inviting proposals for the sale Of 4 percent. thirty-year bonds. The bids
received for this proposed series of bonds aggregated $568,259,850--- than
five times the amount of the bonds offered.
The Morgan syndicate offered to take the whole issue at $1.1069. This bid
was six per cent. higher than the syndicate would have paid at private
sale, had it been consummated. It was a little over six per cent. more
than the syndicate paid for the issue of the $62,000,000 of February 8,
1895. There were 780 bids at prices higher than that offered by the Morgan
syndicate.
It will be borne in mind that this bid of the syndicate for these bonds,
at an advance of six per cent. over that of the same Morgan-Rothschild
syndicate for the issue of February 8, 1895, was for coin bonds of the
same
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kind as this latter issue. The fact that this syndicate was willing to pay
several million dollars more for the same class of bonds, as those
negotiated tinder the secret contract of February 8th, is evidence that
the objections of President Cleveland to coin bonds, rested upon the
flimsiest pretense.
It must be remembered that this increased price was offered many months
after Congress refused to authorize the Secretary of the Treasury to issue
bonds specifically payable in gold coin, and that the Matthews resolution
adopted by Congress, January 25, 1878, declaring that the bonds of the
United States could be legally paid in standard silver dollars Of 412 1/2
grains, was unrepealed, and was in full force and effect as declaratory of
the financial policy of the United States.
The continued efforts of President Cleveland to retire the greenbacks and
treasury notes, and to issue bonds in lieu thereof, seemed to have taken
possession of his mind with a zeal approaching that of mania.
His determined attitude on these public questions, exercised great
influence upon the opinions of many Democratic members of Congress. Hence,
many of the leaders of that party, who, prior to 1892, were the most
consistent advocates of free coinage of silver, suddenly changed their
positions upon these important questions, and did the bidding of President
Cleveland, in his attempt to fasten a gold standard and a national banking
system upon the people, with a zeal that was remarkable. Many of these
Congressmen were defeated in the election of 1894, and President Cleveland
manifested his fatherly care for his new-born prote'ge's by appointing
them to Federal offices; judgeships,
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postmasterships, and various other appointments, were handed around to
these apostates to Jeffersonian principles, as a reward for their
treachery to the people, and their fidelity to that man who had sought to
disrupt that great and historic party, which had taken him from obscurity
and elevated him to the highest positions in the gift of the people.
Tile total amount of bonds issued during his administration was
$262,000,000.
In the meantime, Secretary Carlisle announced that he would redeem silver
dollars in gold, should it become necessary to maintain the parity of the
metals. The scheme of the national banking money power was now
consummated, as far as it lay in the power of the Secretary, inasmuch as
he evidenced a purpose to treat more than 500,000,000 standard silver
dollars as mere credit money, redeemable in gold. This paved the way for a
demand of the national banks, that the Government issue sufficient bonds
to take up and retire this Silver money from circulation.
While President Cleveland was "working in Congress" by means of his
patronage, the money power was working through its various associations
and through the press to train the people to accept the absurd principle,
that the question of money did not fall within the province of laws and
legislation, but that its solution rested solely with commerce-that is the
banking power.
In a letter written by George S. Coe, President of the American Exchange
National Bank, one of the most powerful in the country, to Jos'e F. De
Navarro, the former exhibited his supreme contempt for the powers of
Congress. The closing sentences of this letter, dated April 10, 1893, are
as follows:
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"Commerce is larger than governments and will certainly prevail over them
all. When once this conviction prevails, we shall all be surprised to see
how easily natural laws will conquer local prejudice and legislation.
This writer who made his wealth and secured his fame out of the law-making
power of the Government, now spurns that constitutional authority, as
inferior to the unlimited greed of that class of which he is a shining
light.
In a speech delivered before the Chicago Bankers' Club, April 7, 1895,
William C. Cornwall, a leading banker of Buffalo, said:
"On this silver question the American people are beginning to discard the
old delusion that law can regulate the value of coin."
The New York Sun, April, 1895, said:
"The issue is between gold and silver as the standard of currency, the
value of each metal with respect to each other and to other commodities,
being totally beyond the power of any financial legislator or convention
to change."
This was the gist of the specious argument of the gold standard press and
national banking power throughout the country.
The money power became so elated at its success in having silver stricken
down, that it grew so bold as to threaten the political future of any
public man who did not align himself with that interest. It was abject
submission or political death.
In the speech of Banker Cornwall, April 7, 1895, from which we have
quoted, he said:
"The politician, high or low, who to day turns from the straight course of
sound money and the gold stan-
[457]ß
dard, stabs dead once for all every chance of political success,
especially if he wants to be President."
This bold threat was greeted with the tumultuous cheers of the bankers
before whom this speech was delivered. The gold standard press indorsed
these sentiments of the money power.
During the remainder of the Cleveland administration, the President was
wholly unable to carry any of his financial projects through Congress. He
became a leader without a party. Even the Republicans, whose financial
policies he had so strenuously endeavored to force upon the Democracy,
seized upon every opportunity to severely denounce his management of
public affairs, despite the fact that their notable leaders had warmly
defended his course in repeatedly issuing bonds to maintain the "parity of
the metals."
Outside of the clique of national bank presidents, trust magnates, stock
speculators, bond syndicates, and sycophantic office holders, the
President had no following worthy of the name of party.
The facts detailed in the foregoing pages exhibit the wonderful prescience
and the consummate plans of the national banking money power, as follows:
I. It secured the partial demonetization of government legal tender
currency in 1862-3;
2. The payment of interest upon a vast bonded debt in coin, and,
therefore, it obtained absolute control of the gold of the country;
3. The establishment of national banks to issue paper money, which could
only be put into circulation by building tip a creditor and a debtor
class;
4. The control of the entire volume of money in the country, as a means of
securing possession of the great railway properties, and to organize those
mighty trusts which now monopolize all production and distribution
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5. The demonetization of silver as a means of holding the West and South
in subjection to its will;
6. The consolidation of all great moneyed corporations, with the view of
subjecting the productive energies of the nation to its domination;
7. It has joined hands with the money power of England in as efforts to
control Federal legislation;
8. It had, time and again, used its immense power to thwart the will of
the people as expressed through Congress;
9. It has asserted a superiority above all law and the Constitution, and
has declared that its fiat is more powerful than the authority of this
nation;
10. It has robbed the Government of its highest sovereign power-that of
issuing and controlling the medium of exchange.
THE REMEDY.
1. The restoration to the Government of the power of issuing and coining
money.
2. The permanent destruction of the national banking system.
3. The application of the principles of Jefferson to the administration of
government.
"Oh, beware my fellow-citizens, of stock jobbers or banking associations
who have an interest as distinct from that of the community, as that of
drones from that of bees. Oh, beware, ye legislators, how you create a
moneyed aristocracy, as dangerous to government as Pretorian bands in
Rome, or Janissaries in Turkey. Let me repeat that: I behold this country
as the asylum of the afflicted, the sanctuary of the oppressed, oil which
the eyes of philanthropists are everywhere fixed with affection and
anxiety. Moral feelings, common interests, and general principles unite as
a band of brothers. Whatever appertains to the general welfare should
emanate from the general Government. This
[459]
is the spirit of our Constitution-this is the central axis upon which the
Union must revolve, and any important deviation must make all return to
chaos. If I am assailed for this interference I shall reply, Homo sum et
nihil humani a me alienum puto. "----Thomas Jefferson.
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Queen
Victoria
