stituents inspired to action by the local banks. It has been charged that the panic of 1893, which also came suddenly in the midst of general prosperity, was largely caused or accelerated in just this way, the object being to stop the Government issuing more silver money in particular and more money of any kind in general, because the banks desired for profit to supply all of the money as well as the credit that the people use.

There are, as we have seen, different and equally effective ways to control a bank and its actions other than by owning a majority of its capital stock. And also to control the making of its loans and the purchasing of securities and even the political actions of its officers, directors and customers. It has been said that interests friendly or affiliated with Standard Oil long maintained a cash deposit sufficient to increase by over $1,000,000 the loaning power of a certain financial institution outside of New York City of which institution a well known and very high public official is an officer. How could that public servant oppose the "special interests" even under his oath of office?

As the curtain now is drawn back, we behold the majestic and imperial power of Wall Street, and the easy and invincible methods of employing that power for the ever increasing enrichment of the few at the expense of the many by the great Masters of Finance! We discover just how the rapid concentration of banking capital and control and the consolidation of industries and railroads can be forced. We find the banking system willing or unwilling slaves chained to the wheels of the Wall Street machine, helpless to resist and afraid to protest. And through the banks Wall Street has a strong, strangling rope around the neck of every borrowing individual and corporation in the United States. It is the physical control over the actual money that is the power. For actual cash is and must be the foundation upon which rests that vast inverted and inflated pyramid of bank "credit" that is at least ten times larger than the volume of money. Many of the evils of the present system are directly caused by improper state and federal banking laws, particularly as to bank reserves.

When now the combined wealth of just two living Americans, if turned into cash and withdrawn from the banks and hoarded, would rob every bank and trust company in the country of practically all their cash reserves and force them to call in most, if not all, of the fifteen or more billion

dollars of credit loans legally resting on such cash reserves, the power of such men will be understood and we may well be gravely concerned about the future, as this concentration continues at compound ratio.

The banks in the country have a greater need of legislation to remove the possibility and danger of frequent "silent raids" on the cash reserve of the banks by powerful manipulating "special interests" than to protect against infrequent panic-inspired "runs" by small depositors, for usually the "runs" are only the effect of the panic which the "raids" cause. If the causes of panics are removed, the effects automatically will disappear. In the panic of 1907, the first important withdrawals and the major part of all of the cash taken out of menaced trust companies was owned or controlled by the big interests of Wall Street. And it was such withdrawals by these very interests in 1907 that caused or helped to cause or stimulate that dangerous and far-reaching panic that involved the whole country and all its business, and was only stopped when, at the earnest pleadings of Wall Street, the vaults of the Federal Treasury were opened and millions upon millions of public money was dumped into the financial institutions of New York City as an advertized bluff to quiet the general alarm and restore confidence in the banks.

Money is power, control of money. Growth of this power must be checked now or never, and there is no time to be lost. Law, backed by the strong arm of the Federal Government, supported by the popular will, is the only force that can resist, regulate and effectively control the overswollen power of money.

Will all this insane lust for profit and power end in general confiscation as the one alternative to financial, industrial and political serfdom to some one uncontrolled, irresponsible, insatiable, imperious, man-master, who has all power and no responsibility, and whose only virtue is that he has "got the coin"? All lovers of orderly government hope not. Will the "interests" madly drive on over the cliffs to destruction?

If the banks dared to do so, instead of joining with Wall Street in a private central bank conspiracy to help corner every other dollar of real money not already controlled by "high finance," such banks would be on their knees in fervent prayer to Congress to rescue the financial institutions from the greedy and every tightening grip of Wall

Street. The one remaining chance of salvation for the banks and the business interests dependent in any way upon the banks is the creation of an independent financial power bigger and stronger than Wall Street and its allies, a Government central bank or institution absolutely owned and controlled by the Federal Government, to supply banks direct and the people through the banks an adequate quantity of public currency to keep the cash reserves up to standard and thus maintain an ample volume of bank "credit" based on such reserves always available and ready at reasonable cost and on fair conditions for the legitimate and fluctuating needs of business. This done, the $75,000,000 or the $750,000,000 can be withdrawn from banks if Wall Street and its foreign allies so desire. It will do no harm because as fast as it is withdrawn its place will be taken by Government currency supplied on fair and reasonable terms by such public institution issuing the currency. This plan absolutely protects the banks and the entire business community, takes all excessive and dangerous power away from Wall Street, makes future panics impossible, and does not harm or endanger the banks, the Government or the people. And this or some similar plan is the only way of escape for the people and the country from present evils and dangers. Wall Street then would not withdraw its funds because it could gain no advantage by so doing. The banks will find the Government, the people, a better friend and a more generous and safe master than Wall Street. Their rights and privileges will be clearly defined and enforced by law, and not left subject to the greedy will and pleasure of interests that will promise and not perform, help only that they may the better rule and exploit. The welfare of the banks and the people are or should be mutual, and Wall Street is the deadly enemy of both.

The sharp claws of "high finance" can be clipped in no other way. It is the only way to emancipate the banks, individual and corporate business, the people and the Government from the intolerable and increasing financial despotism of Wall Street.

CHAPTER XIV.

THE SLAVERY OF DEBT.

Mortgage on Human Race 39 Billions.

The official mortgage on the human race now is $39,343,079,476. That is the bonded debt of all nations. It is nearly 10 per cent of the wealth of all the countries on the globe. It is about $22.00 per head for every man, woman and child in all Christendom. The aggregate interest on this world's debt is approximately $2,300,000,000.

Since Columbus plucked the American continent from the unknown in 1492, down to date, the whole world has produced for all purposes $12,935,042,800 of gold and $13,214,956,600 of silver. If every dollar of this gold and silver output of the entire earth for the last four hundred years was applied upon the principal of the world's debt there would remain unpaid $13,193,080,076, a sum exceeding half the value of all the precious metals mined since 1492.

Portions of these debts are constantly falling due by maturity. The issues are refunded over and over. Every year, on the average, the total debt is increased, the debt burden on the human race is made heavier. In 1908 all nations expended $10,177,280,993 for all purposes and raised from all sources $9,969,519,433. The deficit was $207,761,560. This was borrowed and swelled by that amount the principal of the world's mortgage debt, and the yearly interest proportionately. Thus interest compounds and humanity constantly sinks deeper and deeper into the quicksands of hopeless debt.

it

If one-tenth of the world's debt falls due each year would require $3,900,000,000 annually to meet payments on principal and $2,300,000,000 to pay the yearly interest, a total of $6,200,000,000. This is double the total of all money of the United States. The interest must be paid, but the principal falling due usually can be extended, re