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SOME PAGES PROM ME SCRAP ROOK
INTERVIEW WITH MR. WATSON.
In an interview with the correspondent of
The Constitution after the conference with
President Roosevelt, Mr. Watson said:
“So far as proper currency is concerned, it
is a question of whether the government will
use the national credit for the benefit of all
the people, or whether six thousand national
bankers shall be allowed to use it for their
own exclusive profit.
“National bank currency is based upon
government bonds, and the bonds, of course,
rest upon the power and the wealth of the
nation. Whoever buys the bonds becomes a
national creditor, and when the bondholder
is allowed to issue one hundred dollars in
notes against every one hundred dollars of the
bonds, he is using the nation’s credit to sup
port his own notes. The bonds are untaxed
and the notes pay no tax, for while the gov
erment collects a nominal 1-2 of 1 per cent
tax, it is well understood that the proceeds of
this tax do not cover the actual expenses of
maintaining the currency bureau, safekeeping
the bonds, engraving the notes and supervis
ing the operations of the banks.
He Doubles His Money.
“Consequently, the national banker enjoys,
at the public expense, the following advan
tages :
“The one hundred dollars invested in bonds
bears him interest, and this interest is paid
.in advance. Thus he has principal and inter
est working for him at the same time. Be
sides, the one hundred dollars issued to him
in notes brings him compound interest at the
highest legal rate, if no more. Suppose he
gets 8 per cent; then he earns SBO on each
thousand dollars of the notes which have cost
him nothing! When the government antici
pates the interest, the national banker has
three dollars to put out at compound interest
to every dollar actually invested.
“When it is remembered that he pays no
tax whatever, and that his investment in the
bonds is assured by the government against
all chance and change, it is easy to realize
what a vast advantage he enjoys over other
citizens.
“The bond, of itself, is a good investment,
because a capitalist thereby puts accumulations
where they are guaranteed by the government,
and where they contribute nothing toward the
expenses of town, county, state or nation.
“My judgment is that long term bonds
because of these great advantages, would float
at par even though they bore no interest and
carried no banking privilege. There are so
many people who have amassed huge fortunes,
and who are becoming uneasy about the
future, that a long term bond which g?.ve them
the assurance that their wealth would be as
safe as the government is strong, would be
irresistibly attractive.
Foundation Narrowed.
‘ 1 The great trouble with our financial system
is that the national bankers have been allowed
to narrow the foundations upon which it
rests.
“If every dollar in circulation had to be
THE JEFFERSONIAN.
redeemed in yellow dogs, at the option of
the holder, the yellow dog would immediately
become the most precious of canines.
“So, where gold is made the money of final
redemption, the few men who control the gold
become masters of the markets of the world.
“To this narrow foundation of gold the
national bankers have shrunk the money of
final payment, and upon this narrow founda
tion they have reared the giddiest superstruc
ture of credit-money that the world ever saw.
“In bank notes, checks, drafts, etc., they
have had in constant circulation from ten to
thirty times more money than they invested
in their business. They have been drawing
compound interest on twice a smuch money as
the entire stock of money in the United
States.
“There were a few far-sighted men who
knew that the financial situation was fought
with national peril, but the warnings of such
men went unheeded. Then, one fine morning,
something shook public confidence, and the
people began to clamor for real money. There
was not enough real money in the United
States to meet the demand. Therefore, panic,
disaster, universal demoralization.
* ‘ A great nation, the wealthiest in the world,
with tremendous crops of corn, cotton, hay,
wheat and every other commodity essential
to the needs, the comforts and the happiness
of the human race, was told by these national
bankers that the situation could not be re
lieved until we sent to Europe and got a few
sacks full of yellow metal!
“What a Shocking Situation.’*
“Actually possessing more substantial
wealth than the cars and steamboats could
haul, we were told that these commodities
could not be marketed and business restored
to normal conditions until we went to Europe
and got a shipload of gold!
“What a shocking situation!
“All this stagnation, all this demorali
zation, all this widespread misery has been
the immediate, inevitable result of the rapa
city of the national bankers. They have de
manded and obtained the monopoly of using
the nation’s credit in their business, and they
have used it to vast injury of the nation.
“In order that they might control the sup
ply of money of final redemption, they have
violated our constitution, narrowed our system
down to the single gold standard and thus
brought matters to where they can inflate or
contract at their own pleasure.
“They can inflate the currency, send prices
up and sell; they can then contract the cur
rency, send prices down and buy.
“This game they have played on the Am
erican people over and over again. As long
as the gold standard exists and as long as
the national banks enjoy the monopoly of
furnishing the paper money currency, there is
absolutely no method by which the business
world can be saved from periodical ex
ploitition.
Calls Elastic Currency “Fiddle-Faddle.”
“All this talk about elastic currency is the
merest fiddle-faddle. You might as well talk
about an elastic supply of blood in the human
system, or an elastic supply of hair on a dog’s
back. Nature takes care of such things, and
the supply and demand work automatically.
Where the human system is healthy, the blood
circulation bothers nobody. It takes care of
itself. So with the currency system of a
nation; if it is natural and healthy, the law
of supply and demand regulates the movement
of money. But where we have permitted six
thousand national bankers to so monkey with
the currency system that the greatest part of
the supply of real money is concentrated in
a few big cities, then there is congestion in
stead of circulation
“Why is it that money would not come
south to move cotton? Because the New York
banks would not let it come. These met
tropolitan banks of the east drew nearly all
of the money out of the western and southern
banks to New York, where it was loaned at
from 50 to 200 per cent to delirious specu
lators. Then when the western and Southern
banks needed their funds for their own
customers, they were told that they could not
get it.
“The situation is not only appalling, but
it is brought about by such systematic law
lessness and favoritism as no other people
but ours would patiently tolerate.
Gold Redemption Violates Law.
“According to our national constitution, as
interpreted by the supreme court of the
United States, our financial consists
of gold, silver and paper. . The
gold and silver equal,
Gold dollars were never meant
to silver dollars. Nor were s : ' zoollars, or
the paper representatives thereof, ever meant
to be 1 redeemed’ in gold dollars. Such re
demption violates the highest law of the land.
“Since the foundation of the government,
the issuance of treasury notes has been a law
ful prerogative which our presidents have not
hesitated to exercise. Paper notes may be
issued by the government at any time, and in
(Continued on Page Seven.)
ANNOUNCEMENT.
To the Populists of the Ist Congressional
District of Alabama: I want to meet as many
of you as possible at our State Convention to
be held in the city of Birmingham on the 4th
day of March, 1908, for the purpose of making
arrangements to thoroughly organize our dis
trict for the coming campaign and to make
any other arrangements, as may seem best.
Yours very respectfully,
G. B. WILSON,
Chairman of Ist Diet.
SALESMAN WANTED to represent a firm com
posed of Southern people, selling reliable
goods to Southern people. Only men of good
character and hustling ability need apply. We
have a few good openings for the right men.
Be first in your community; write today.
SOUTHERN SUPPLY CO., 1298-1300 Broad
way, New York.
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