"She is not dead, but holding her capital and stock holders together under a state charter, she has taken a position to watch events and also to profit by them. The Royal tiger has gone into the jungle; and, crouching on his belly, he awaits the favorable moment emerging from his covert and springing on the back of the unsuspicious traveler." - Thomas H. Benton

"Bank paper must be suppressed and the circulation restored to the nation to whom it belongs.

"The power to issue money should be taken from the banks and restored to congress and the people.

"I sincerely believe that banking establishments are more dangerous than standing armies.

"I am not among those who fear the people. They and not the rich, are our dependence for continued freedom. And to preserve their independence, we must not let our rulers load us with perpetual debt.

"Put down the banks and if this country could not be carried through the longest war against her most powerful enemy without ever knowing the want of a dollar, without dependence upon the traitorous class of her citizens, without bearing hard upon the resources of the people or leading the public with an indefinite burden of debt, I know nothing of my countrymen."- Thomas Jefferson.

In the preceding chapter, the career of the United States Bank was traced from its origin to its downfall.

It was there shown that the United States, by transferring its sovereign power of issuing currency to accumulate as money among the people, and delegating to a private corporation, had, in a period of less than fifty years, built up a monopoly that threatened to pull down the pillars of the republic.

That the panics of 1811, 1833, and 1837-41, with their consequent ruin of tens of thousands of industries, with the attendant circumstances of hunger, suffering, and starvation, were designedly produced by the bank to overawe Congress and the President.

That it secured the powerful political influence of Webster, Clay, and Calhoun on the floor of the United States senate as the champions of its interests.

That the press of the country, to a very large extent, succumbed to its moneyed influence.

That it attempted to crush the beneficent administration of President Jackson.

We now come to consider a system of national banking, compared with which, the old United States Bank was a pigmy.

In 1861, when the Southern states attempted to withdraw from the Union, the result was that great conflict known in history as the civil war. Throughout its progress, the mass of the people were intently engaged with the gigantic operations constantly carried on during that period, and, therefore, little attention was paid by them to the financial legislation, enacted by Congress.

When the North and the South were marshaling their respective armies to determine the question of military supremacy, the weight of foreign influence was thrown to the southern cause. Great Britain, from her antipathy to the people of the United States, early recognized the Confederacy, and her course was followed by France and Spain, but the latter powers did not resort to the extreme measures of England.

During the early period of the war, immense sums of money were needed by the Federal Government to arm, equip, and maintain her numerous armies and fleets necessary for the suppression of the rebellion.

Heavy taxes of various kinds were levied and collected for the payment of the extraordinary expenses incurred by the war, but this was insufficient to meet the expenditures. Resort was had to borrowing money on the credit of the United States by the sale of bonds.

At that time as at present, New York City was the financial center of the country. August Belmont & Co. were the American agents of the Rothschild's, and the former advised this great banking house that there would be much risk in purchasing American bonds.

The Rothschild's were located in the city of London, England, with branch banks at Paris, Frankfort, Berlin, and Vienna.

From the year 1800, up to the outbreak of the civil war, the United States had made astonishing progress as a commercial nation, our commerce had rapidly grown to be the second largest in the world, and it promised, ere long, to surpass that of Great Britain, who had long looked with jealous eye on the remarkable growth of the American merchant marine. She had for centuries prided herself as the "Mistress of the Seas," and had long feared that this republic would snatch its supremacy from her, and thus relegate her to a second rate power.

Hence, upon the outbreak of the war, the rejoicing in England was immense, and British statesmen predicted the success of the Confederacy. Nor was this all. England aided the South by money, munitions of war, by the recognition of her belligerency, and by her moral support.

It was evident that no money could be secured from England by the United States to maintain the supremacy of the Constitution, for nations, like men, are governed in their money transactions largely by their likes and dislikes.

In 1861, the money in circulation in the United States consisted of gold and silver coins, and state bank currency. As the expenses of the Government in 1861-62 were many millions of dollars in excess of its income, and as but little money could be had by the sale of its bonds, recourse was had to issuing paper money.

By the acts of July myth, and August g, 1861, the Secretary of the Treasury was authorized to issue demand notes to the amount of fifty millions of dollars, and these notes were made full legal tender for all debts and demands, both public and private. This was net the first time that the Federal Government had issued its notes to circulate as money. It will be remembered that during the war of 1812, the Government had resorted to this means, a precedent followed by the administrations of Van Buren, Polk, and Buchanan.

These notes so issued at these various times were maintained at a parity with gold and silver coin, and were a favorite money of the people. History records the fact that no less than twenty issues of paper money were emitted by the general Government prior to the year 1862; that the people never questioned its value and efficiency as a medium of exchange. These various issues of currency were uniformly receivable by the government in payment of its taxes and revenues.

During the perilous times of the nation, when bankers and financiers refused to loan money to it, the issue of full legal tender paper money never failed to come to the rescue, while cowardly gold fled to the rear.

Therefore, the fifty millions of demand notes issued under the authority of the acts of July 17th and August 5, 1861, having unlimited legal tender power for the payment of all demands, never depreciated a farthing.

Subsequent to the passage of this act, a bi11 was introduced in Congress providing for the issue of non-interest bearing treasury notes to the amount of $150,000,000 with full legal tender power for the payment of all debts and demands, public and private. Immediately, from the leading cities of the country, a horde of bankers, or as Hon. Thaddeus Stevens aptly termed them, "A delegation of bankers and coin venders," hastened to Washington, organized themselves, and requested the Committee on Ways and Means of the House, and the Finance Committee of the Senate to meet with them at the office of the Secretary of the Treasury. Their request was complied with on the 11th day of February, 1862.

Owing to some peculiar and powerful influence, then and there exerted by these organized bankers on these committees, the legal tender clause was modified to read as follows: -

"That the amount of the two kinds of notes together shall at no time exceed the sum of $150,000,000, and such notes herein authorized shall be receivable in payment of taxes, internal duties, excises, debts, and demand of every kind due to the United States, except duties on imports, and of all claims and demands against the United States of every kind whatsoever, except for interest upon bonds and notes which shall bc paid in coin, and shall also be lawful money and a legal tender in the payment of all debts, public and private, within the United States, except duties on imports and interest as aforesaid."

This proposed amendment was severely criticized by Mr. Stevens, of Pennsylvania, and by Mr. Spaulding, of Net York. During the debate upon the bill as amended, her. Stevens denounced the demands of the bankers and said: -

"A doleful sound came up from the caverns of the bullion brokers and the saloons of the associated banks. Their cashiers and agents were soon on the ground, and persuaded the Senate with but little deliberation to mangle and destroy what it had cost the House months to digest, consider and pass.

"Instead of being a beneficent and invigorating measure, it is now positively mischievous. It has all the bad qualities which. its enemies charged on the original bill and none of its benefits. It now creates money and by its very terms declares it a depreciated currency. It makes two classes of money - one for banks and brokers and another for the people. It discriminates between the rights of different classes of creditors; allowing the rich capitalist to demand gold and compelling the ordinary lender of money on individual security to receive notes which the Government had purposely discredited."

Mr. Stevens further said: -

"Who is this favored classy The bankers and brokers and nobody else. But how is this gold to be raised? The duties and public lands are to be paid for in United States notes, and they or bonds are to be put up at auction, to get coin for these very brokers, who would furnish the coin to pay themselves by getting twenty per cent. discount on the notes thus bought."

While on his death bed, the Great Commoner, as his friends loved to call him, recalled the action of Congress in demonetizing the greenback at the instigation of the banks. In speaking of the bankers he said: -

"We were foolish to grant them gold interest, and now they unblushingly demand further advantages. The truth is we can never satisfy their appetite for money."

The amendment of Mr. Stevens to place officers and soldiers of the army and navy, and those who should furnish them with provisions upon the same standing as the bankers and brokers, was defeated by a vote of 72 to 67.

In denouncing the amendment striking out the legal tender clause, Senator John Sherman spoke as follows; -

"If you strike out this legal tender clause you do it with the knowledge that these notes will fall dead upon the money market of the world; that they will be refused by the banks; that they will bc a disgraced currency that will not pass from hand to hand; that they will have no legal sanction; that any man may decline to receive them, and thus discredit the obligations of the Government. I ask again if that is just to the men to whom you have contracted to pay debts? When yon issue demand notes and announce your purpose not to pay any more gold and silver coin, you tender to these who have furnished provisions and services this paper money. What can they do? They can not pay their debts with it, they can not support their families with it, without a depreciation."

He further said in this speech of February 13, 1862, that "I much prefer the credit of the United States, based as it is upon all the productions and property of the United States, to the issues of any corporation, however guarded and managed."

This language of Senator Sherman was that of undoubted patriotism, and it is strongly condemnatory of his subsequent public career, during which he became the active ally of the national banks.

Mr. Kellogg, of Illinois, thus scored the greed of these men. He said: -

"I am pained to sit in my place in the House and hear members talk about 'the sacredness of capital, that the interests of money must not be touched. Yes, sir, they will vote six hundred thousand of the flower of the American youth for the army to be sacrificed without a blush, but the great interests of capital, of currency, must not be touched. "

In referring to the grand struggle made by Mr. Stevens for full legal tender currency, Judge Kelley said: -

"I remember the grand old Commoner with his hat in his hand and his cane under his arm, when he returned to the House from the final conference, shedding bitter tears over the result. 'Yes,' said he, `we have had to yield. The Senate was stubborn. We did not yield until we found that the country must be lost or the banks be gratified; and we have sought to save the country in spite of the cupidity of its wealthiest citizens.' "

The bankers thus succeeded in limiting the legal tender power of the Treasury note, or as it is commonly called, the greenback, and from this time on the bankers, brokers, and speculators have, with few exceptions, dictated the financial legislation in the United States.

This amendment, by which the debt paying power of the Treasury note was restricted within such narrow limits, was a most dishonest act on the part of the government.

It drew distinctions between the various kinds of money issued by the United States. It made the bankers and bond holders a privileged class, and it inflicted a wound upon the nation from which it has not yet recovered. It made gold and silver coin the money of the privileged classes, who composed that traitorous element so justly denounced by Jefferson.

By force of this amendment, coin went to a premium, thereby greatly enhancing the wealth of the bankers and bullion brokers.

Moreover, the principle involved in that act greatly weakened the most powerful element of sovereignty that can reside in a nation, by placing the control of the value of money in the hands of organized greed, in this case the gold gamblers of Wall street.

It laid the foundation of a stupendous public debt, which the holders thereof would strive to perpetuate by every means in their power, and it was the first step to fasten on the people the most powerful and merciless tyranny that ever cursed a free people - the centralized money power known as the national banking system.

The bill, as amended, became a law on July 11, 1862, and, from that time, began the depreciation of the greenback currency.

The banking power, which had succeeded in inducing Congress and the President to cripple that currency, which eventually saved the Union, afterward pointed the finger of scorn at this money as a debased currency, and they, therefore, impliedly damned their own nefarious conduct by denouncing it as "rag-baby" money.

As a result of this act as amended, the merchant who paid duties on merchandise imported from abroad was compelled to pay the taxes levied thereon, in coin. To obtain that kind of money he must proceed to the bullion broker, and pay him a large premium for the coin to mate his payment of the customs levied on his merchandise. The bond holder was paid his interest on government bonds in gold, which was afterward sold by him to the importer, at a high premium.

This legislation was the result toward which the bullion brokers and gold gamblers of Wall street bent all their energies to procure, when they induced the government to rob the greenback of its full legal tender debt-paying power. It was the consummation of the most dishonest financial scheme ever perpetrated upon a heavily taxed and patriotic people.

Immediately following the visit of these bankers to Washington, a circular was issued by the London bankers, and distributed by one Hazard, who was their representative in this country at that time.

The contents of this famous circular are as follows: -

"Slavery is likely to be abolished by the war power and chattel slavery destroyed. This I and my European friends are in favor of; for slavery is but the owning of labor and carries with it the care of the laborer, while the European plan, led on by England, is capital control of labor by controlling wages. This can bc done by controlling the money. The debt, that capitalists will see is to be made out of the war, most be used as a measure to control the volume of money. To accomplish this the bonds must be used as a banking basis. We are now waiting for the Secretary of the Treasury to make his recommendation to Congress. It wil1 not do to allow the greenback (as it is called) to circulate as money any length of time, for we cannot control it."

The existence of this remarkable circular has been strenuously denied time and again by the national banking money power. Notwithstanding these denials, the line of action indicated in that circular has been consistently pursued from that day to this.

The advice of said Hazard was at once acted upon by the organized banks, and they proceeded to mate known their demands to Congress.

Therefore, a bill was speedily brought forward by Senator Sherman in the United States Senate, providing for the incorporation and organization of the present system of national banks as banks of issue - a bill whose passage meant the creation of moneyed institutions, whose interests would be, or could be made, antagonistic to the nation.

Is it not exceedingly strange, that Senator Sherman, who, in his able speech of February 13, 1862, advanced powerful arguments in behalf of Government legal tender currency, or greenbacks, in which he stated that he preferred the credit of the United States, based, as it was, upon all the productions and property of the people, to the issue of any corporation however well guarded and managed, would thus suddenly change his position?

In less than a year from the time he so ably defended legal tender greenback currency, he reversed his position, and fathered a, financial measure which brought into being a dangerous rival to the Government when it was engaged in a death struggle.

In substance, this act provided for the incorporation of banking companies, by which not less than five persons could, under certain restrictions, organize a bank, by depositing with the Secretary of the Treasury United States bonds to secure the circulation of national bank notes as currency.

The capitalists thus organizing themselves into a national bank association, were required to enter into articles of association which should specify, in general terms, the object for which the association was formed.

These articles were to be signed by the persons uniting to form the association, and a copy of them was to be forwarded to the Comptroller of the Currency to be filed and preserved in his office.

No association could be organized as a national bank with a less capital than one hundred thousand dollars; except that banks with a capital of not less than fifty thousand dollars could, with the approval of the Secretary of the Treasury, bc organized in any place having a population not exceeding six thousand inhabitants.

Upon a deposit of United States bonds, the banking associations were entitled to receive from the Comptroller of the Currency, circulating notes, of different denominations, in blank, registered or countersigned, equal in amount to ninety per centum of the amount of the current market value of the bonds so deposited by the association with the Comptroller, but in any case the circulating notes were not to exceed ninety per centum of the par value of the said bonds, if bearing interest at a rate of not less than five per cent per annum; and the amount of circulating notes to be furnished to each association shall be in proportion to its paid-up capital as follows, and no more: -

To each association whose capital does not exceed five hundred thousand dollars, ninety per centum of such capital.

To each association whose capital exceeds five hundred thousand, but not exceed one million of dollars, eighty per centum of such capital.

To each association whose capital exceeds one million of dollars, but not exceed three millions of dollars, seventy-five per centum of such capital.

To each association whose capital exceeds three millions of dollars, sixty per centum of such capital.

The law further provided that after any association receiving circulating notes under this act, and has caused its promise to pay such notes on demand to be signed by the president, or vice-president, and cashier thereof in such manner as to make them obligatory promissory notes payable on demand, at its place of business, such association may issue and circulate the same as money. And such notes shall bc received at par in all parts of the United States in payment of taxes, excises, public lands, and all other dues to the United States, except duties on imports, and also for all salaries and other debts and demands owing by the United States to individuals, corporations, and associations within the United States, except interest on the public debt, and in redemption of the national currency.

This act also provided that, in lieu of all existing taxes, each association should pay a duty of one per cent per annum upon the average amount of its notes in circulation, and one-half of one per cent per annum upon the average amount of its deposits, and a duty of one-half of one per cent per annum on the average amount of its capital stock beyond the amount invested in United States bonds.

Furthermore, these national banking associations were authorized to institute suits at law in the United States courts as courts of original jurisdiction.

This provision gave the national banks an advantage over the ordinary citizen, and placed these associations beyond the jurisdiction of the State courts; in other words, these banks could select whatever court their interest dictated.

It will at once be ascertained, from a study of the national banking law, that the capital of the associations was nearly doubled by act of Congress.

In the first place, bonds, deposited by them to secure their circulation drew interest payable in gold, at this time at a high premium. Second, the circulating notes issued to them by the United States, although promissory notes payable on demand and therefore debts of the banks, were nominally money, and were loaned out at a high rate of interest to the customers of the national banks.

The United States Government gave the wealthiest men of the country, in the time of its greatest peril and distress, a gratuity equal to ninety per centum of their banking capital.

This scheme engineered through Congress by the money power, greatly tended to centralize the currency in the large cities, and, therefore, made it master of the productive energies of the American people, as the vast majority of the bonds were held in New York City and other centers of wealth and population.

It made the circulating notes of these banks a rival to the greenback currency, and it would bc to the interest of the national bankers, by every means in their power, to drive out and destroy the paper money issued by the Government.

This law placed it in the hands of the money power to contract or expand the volume of money at its pleasure, and, therefore, enhance or depreciate the value of stocks, bonds, and all other forms of property in the United States.

The far-reaching influence of this act of Congress, chartering national banks, becomes apparent, when the true principles and functions of Government are considered in all their relations to the people.

Pre-eminent among the various powers conferred upon, or assumed by a sovereign state, are those of taxation, of raising armies, and of coining, issuing, and controlling the volume of money.

The first named power, that of taxation, is only limited by the necessities of the State, and of the amount of property upon which it operates.

A citizen of a state may become the owner of a home through arduous toil and life-long rigid economy, yet, the state, when invoking the power of levying and collecting taxes, may sweep away this property, not leaving a vestige for the man whose labor and privations created a shelter for himself and family.

In a great case before the highest tribunal of the nation, Justice Samuel P, Miller said that "The power of taxation is the power to destroy."

No man who is endowed with a modicum of intelligence would advocate a transfer of this immense power to a private corporation for its gain.

It would amount to the self-destruction of a nation.

The power of raising and maintaining armies is inherent in a sovereign state, and is absolutely necessary for its self-defense, and therefore its self-preservation.

The strong arm of the Government can reach every fireside in the land, and can drag from thence the father, husband, or son, tear him away from the family circle, force him to don the national uniform, to bear arms, and to lay down his life for his country.

No citizen can resist the imperative call of his country when involved in war.

No sane man would advocate the delegation of this high attribute of sovereignty to a corporation for its individual gain, as such transfer of power would inevitably result in frightful oppression.

The power of coining, issuing, and controlling the volume of money is a far more important function of government than the foregoing.

All commerce, exchange, the existence of Government, of civilization itself, hinges upon this mighty function of Government. The power of issuing and controlling money exercises an imperial sway over all productive industry as universal as the law of gravitation upon all matter.

The value of all property, whether of the present time, or of that resulting from the earnings and accumulations of all past generations, depends upon the control of the volume of money,

The power of levying and collecting taxes for the support of the nation, of raising and maintaining armies for its preservation, is dependent upon the control of the currency.

The former is subordinate to the last named power, and consequently involves the very life of the nation.

Yet, in time of the greatest need of the nation, when everything most valuable to man was at stake, this necessary power of Government was delegated to the most traitorous and rapacious system of corporations that ever cursed the people.

By this transfer of sovereign power to the national banking system, the Federal Government divested itself of that never failing resource which secured the independence of the colonies, and which successfully enabled the administration of James Madison to chastise the overweening pride of Great Britain in 1812.

The alienation of this highest function of the nation to the national banking money power was a high crime against the welfare of the country, and it created a powerful moneyed interest antagonistic to the United States.

More than one hundred years ago, the illustrious Jefferson clearly pointed out the dangers of banks of issue. Time and again, he exerted his voice, his pen, and his influence, in warning the people of the consequences that would inevitably flow from such selfish schemes as the transfer of national powers to corporations.

The extreme danger of a sovereign power, in transferring its absolute right of coining and issuing money in whole, or in part, to a private individual, or corporation, has been clearly pointed out by the ablest thinkers of a11 ages. Such transfers of the powers of a state have universally resulted in extortion and oppression by those to whom this privilege is granted.

Vattel, the great authority on the law of nations, instances several cases. He places the right of coining money among the prerogatives of majesty, and he relates that Sigismund, king of Poland, having granted this privilege to his vassal, the Duke of Prussia, in the year 1543, the Estates of that country passed a decree in which it was asserted that the king could not grant that privilege, it being inseparable from the crown.

The kings of France granted the privileges of coining money to lords and bishops, and these grantees .having used that power as an instrument of great oppression, these privileges were cancelled by the crown on account of the great abuses practiced on its subjects.

The history of England furnishes a notable example, for in 1723, one Wood, an Englishman, obtained a royal patent for the coinage of copper half-pence. Wood at once proceeded to flood Ireland with this base coin, and robbed the down-trodden people of that country out of thousands of pounds sterling.

This gross outrage upon that nation aroused the indignation of Swift, and in his "Drapier's Letters" he attacked the Government with such bitter satire, that, in 1725, the patent to Wood was withdrawn.

Parliament, however, granted the scoundrelly Wood an annuity of fifteen thousand dollars per annum for the period of twelve years as an indemnity! The presumption is, that this great sum of money was given to Wood on the ground that he had surrendered a "vested right."

Our Government, in the enactment of this national banking law, gave away its greatest resource in time of peace or war; viz., the power to issue legal tender paper money, a resource that had time and again come to the rescue of the people while the capitalists held aloof.

The principal excuse offered by those who procured the passage of this law was, that it would create a market for bonds, and would aid in the maintenance of the public credit; that, for the consideration of receiving these circulating notes to loan out at interest as money, the bankers, who were the beneficiaries of this law, would lend their assistance to the Government by aiding it to maintain a high price for its obligations.

61

The very reason advanced by the originators of that system of banking and currency for its creation, became the strongest reason why the Government credit sunk to its lowest point, because, the national bankers, to obtain these bonds as low as possible, would combine to depress the market value of the United States bonds which formed the basis of bank currency.

In fact, the market price of Government bonds rapidly fell to the lowest mark ever known, after the passage of this act, and the national banking money power consequently reaped a harvest reaching into scores of millions.

The same power depreciated the value of greenbacks for the avowed purpose of increasing the premium on gold.

Not satisfied with the immense advantages thus obtained from the Government, during the most critical period of the war, the money power, on the 17th day of March, 1864, succeeded in securing the passage of a resolution through Congress, authorizing the Secretary of the Treasury to pay the interest upon bonds, in advance, not exceeding one year, either with or without rebate for such prepayment, according to his discretion.

The bond holders and bankers were thus enabled to draw their interest in gold one year in advance, dispose of it at a high premium to the government and to those who paid duties on imported merchandise.

In July, 1864, gold rose to a premium of $2.85, and the bond holder, national banker, and gold gamblers fleeced the people out of millions; while the soldier, who was sacrificing his life for his country, was paid in greenbacks purposely depreciated by the government for whose existence he fought.

62

During the Forty-fifth Congress, Hon. James R. Weaver introduced the following resolution in the House of Representatives: -

"Resolved, That the Secretary of the Treasury bc and is hereby directed to report to this house whether he has at any time anticipated the payment of interest on the public debt; if so, how much has been paid in advance, and to whom."

This resolution was referred to the Committee on Ways and Means, and the chairman thereof sent the resolution to the Secretary of the Treasury, Sherman, with a request to state when he could report.

The Secretary, in reply, stated: -

"That there was no public document that would give the information required. The department has been in the habit for five years of paying the interest in advance without charging anything."

This remarkable admission will attract attention for the reason, that the head of the Treasury Department distinctly states that interest had been paid in advance to the bond holders and bankers without any deduction for the use of the money, and that there was no public document that would give the information required. The obvious reason why there were no public documents in the treasury department, containing a record of the interest on bonds paid in advance was this, that it would show a gigantic robbery of the government by the banks and bond holders, and that it would awaken the just wrath of the people at the subservience of congress to the demands of the gold gambling money power.

In a speech delivered by Senator Sherman in advocacy of the national banking law, he said: -

"We are about to choose between a permanent system, designed to establish a uniform national currency, based upon the public credit, limited in amount, and guarded by all the restrictions which the experience of man has proved accessary and a system of paper money without limit as to amount, except for the growing necessities of war."

In this declaration of the senator, he expressly admits that the circulating notes of these banks were based on the credit of the Government.

The truth is, that no safe system of bank currency has ever yet been devised by the wit of man, but that its credit is based upon that of the Government, and the credit of a government rests upon its taxing power, which is its means of self-preservation.

To give an excuse for his change of front from an advocate of a legal tender Government currency, to a champion of the national banking system, the senator uses the following language: -

"It is asked, why look at all to the interests of the banks; why not directly issue the notes of the Government, and thus save the people the interest on the debt represented by the circulation? The only answer to this question is that history teaches us that the public faith of the nation alone is not sufficient to maintain a paper currency. There must be a combination between the interests of individuals and the Government."

This astonishing declaration of Senator Sherman is proven absolutely false by the provisions of his own act, the national banking law, which makes United States bonds the sole security for national bank notes, and compels the Government to act as a redemption agency for the notes of insolvent banks.

As the next step to secure the perpetuation of this robbery of the people, Congress, on the 3rd of March, 1863, authorized the Secretary of the Treasury to issue $900,000,000 in bonds, drawing interest at six per cent., and redeemable in not less than ten nor more than forty years. These bonds could be purchased by lawful money, thereby meaning United States notes and treasury notes.

There was a lapse of six days between the passage of the national banking act and the passage of this act authorizing said bond issue.

There was yet one rival in the field which the national banks desired to crush, and this was the state banks of issue, which, at this time, had a circulation of $238,677,218in state bank currency.

To destroy the state banks as banks of issue, and to drive out of circulation that species of paper money, the national banking money power prevailed upon congress to call into requisition the taxing power of the nation to clear the field of these competitors.

In compliance with their demands, Congress enacted the following law, viz; -

"That every national banking association, state bank, or state banking association, shall pay a tax of ten per centum on the amount of notes of any person, or of any state bank or state banking association used for circulation and paid by them." -

This great tax thus imposed by Congress upon the issues of state bank currency was effectual in successfully accomplishing its purpose.

The state banks, therefore, were driven to the necessity of organizing themselves into national banks, and this tended to a further consolidation of the money lending interests of the country.

During the early part of the year 1864, after the organized banks had secured the passage of the law depriving greenbacks of their legal tender power, and after the passage of the national banking law, one James Buell, secretary of the New York bankers' committee, issued the following circular to the bankers of the country at large: -

"Dear Sir: It is advisable to do all in your power to sustain such daily and prominent weekly newspapers, especially the agricultural and religious press, as will oppose the issuing of greenback money, and that you withhold patronage and favor from all applicants who are not willing to oppose the Government issue of money. let the Government issue the coin and the banks issue the paper money of the country, for we can better protect each other. To repeal the law creating national banks or to restore to circulation the Government issue of money will be to provide the people with money, and will therefore seriously affect your individual profit as banker or lender. See your member of Congress at once and engage him to support our interest that we may control legislation."

The appearance of this infamous circular stirred up the wrath of the people, and a wave of indignation swept over the land, The nefarious schemes of the money power were set out in this circular with startling distinctness.

The bankers of the country were urged to combine their power; the press of the country was to be corrupted, and legislation was to bc controlled, to effect the purpose of transferring the control of the money of the country to the dictation of the money power.

The associated banks of New York City, in order to conciliate the people who were strongly denouncing the scheme set forth in the circular of Buell, announced that this document was issued without their knowledge or authority. However, Mr. Buell, whose name was appended to this circular, was rewarded by an election to the presidency of the Importers' and Trailers' National bank, of New York City, a position which has given him much power and prestige as one of the money kings of Wall street.

The evidence is positive that this circu1ar was issued with the approval, and by the orders of the associated banks of New York City. In the first place, the advice tendered to the various banks of the country was in complete harmony with the intentions of the money power, and secondly, the national banks, from that day to this, have carried into execution the baleful plan outlined in that document, as the various acts of congress and subsequent history abundantly prove. It was during the corrupt period of the war that immense grants of public lands were made to railway corporations, that donations of United States bonds, amounting to nearly one hundred million of dollars were made to the Pacific railway companies, and this was done during a time when the government was in need of funds to suppress the rebellion.

It was during this period that Congress passed the notorious foreign contract labor law, through the operation of which, the mills, factories and mines of the United States werc flooded with the Slavs, Huns, Bohemians, Poles, and various other nationalities of Europe, thereby laying the foundation for the countless race and labor riots, that have disgraced and cursed the manufacturing and mining states of the Union.

After the suppression of the state banks of issue, the next step of the national bank was directed toward the destruction of the greenbacks and United States notes, and, therefore, on the 12th of April, 1866, an act of Congress was duly signed by the President providing for the withdrawal and cancellation of the United States notes and treasury notes.

This act provided that, within six months after the passage thereof, the Secretary of the Treasury was authorized to retire from circulation United States notes to the amount of ten million dollars, and for every month thereafter a sum not to exceed four million dollars.

At, the time of the passage of the act of April 12, 1866, Hon. Hugh McCulloch, a national banker, and a bitter opponent of the legal tender currency, was Secretary of the Treasury. He had gone so far in his opposition to the United States notes and treasury notes as to denounce them as "disreputable, dishonorable money."

Secretary McCulloch immediately proceeded to remorselessly contract the volume of legal tender notes, until $94,000,000 of them were withdrawn from circulation by the issue of interest bearing bonds in exchange therefore.

On the ad of March, 1867, an act was adopted by Congress providing for the redemption and retirement of the compound interest notes, which, at this time were outstanding to the amount of $159,000,000 and which circulated as money.

The method of redemption was the substitution of temporary loan certificates in lieu of these notes. The amount of such certificates was fixed at $50,000,000, and they bore interest at the rate of three per cent per annum, and national banks were authorized to count such certificates as part of the Reserve Fund provided in the national banking law.

On July 25, 1868, the Secretary of the Treasury was authorized to issue additional loan certificates to the amount of $25,000,000.

The acts of March 2,1867, and July 25, 1868, made a further contraction of money to the amount of $75,000,000.

It will be seen, therefore, that the scheme set forth in the circular of James Buell was being carried out to the letter.

Step by step, the national banking money power was gradually succeeding in driving the legal tender currency oat of circulation, in perpetuating the public debt by the issue of long time bonds, and usurping the functions of government by the issue of bank notes.

On the 18th of Match, 1869, a bi11 entitled, "An Act to Strengthen the Public Credit," was signed by President Grant.

The provisions of the Credit Strengthening Act declared that the public faith is solemnly pledged to the payment of the interest and non-interest bearing obligations of the government in coin or its equivalent, except where the law authorizing the issue of such obligations has expressly provided that the same may be paid in lawfu1 money, or other currency than gold and silver. Furthermore, the United States solemnly pledged its faith to make provisions at the earliest practical period for the redemption of the United States notes in coin.

This so-ca11ed Credit Strengthening Act, by force of its provisions, made every dollar of the bonded debt of the United States payable in gold and silver coin. It was estimated by the ablest public men of the day tha