SEVEN FINANCIAL CONSPIRACIES
PREFACE.
Would I add another to the multiplicity of books that is flooding the country ? Why not ? It is only a little book I offer, but it contains truths which if understood by the masses, would tend to awaken them to the dangers which threaten our free institutions. “ Eternal vigilance is the price of liberty,” and a people too indifferent or to self-satisfied to be mindful of their liberties are unworthy of such a boon.
Republics are lost because their guardians—the people—entrust them to scheming politicians. We did not profit by the experience of other Republics, but followed in their footsteps,—and in their downfall we see our pending doom. That such a doom may be averted, I believe to be the desire of every patriotic citizen ; and if, in the perusal of these pages, my readers are awakened to a consciousness of impending danger, I shall feel that this labor has not been in vain. A revolution is upon us. Let us see to it that it is wrought by ballots, rather than bullets.
S. E. V. E.
Preface To Two Hundred And Twentieth Thousand Edition.
Four years ago it was with many misgivings that I presented “ Seven Financial Conspiracies ” to the public. Would it be received with contempt or would the masses comprehend its plain though startling truths, were problems that I felt myself unable to solve. But the rapidly increasing demand for the book has been more than a satisfactory answer to my doubtful questionings. The cordial greeting which the little messenger has received from every State and Territory in the Union is indeed gratifying, for the profound interest manifested in its teachings gives assurance that the principles of justice are deeply rooted in the hearts of the American people. Scores of times have I been assured that the startling truths presented in this little book have revolutionized entire counties.
While I am gratified that such happy results have been brought about through its teachings, I take to myself but little credit for the good that has been accomplished.
This little work is but the reflection of a wonderful luminary from the pen of one of the purest philanthropists of this age—Col. B.S. Heath. For years I was a student of his inestimable book, “ Labor and Finance Revolution,” and sat a disciple at his feet until I became most thoroughly imbued with the spirit of his teachings.
To B.S. Heath this country owes a debt of gratitude that can never be paid until his teachings become so thoroughly incorporated into the life of every American citizen that he will know no duty higher than that of overthrowing the monopolistic powers that threaten the life of this nation.
S. E. V. E.
NOTE.—Col. Benjamin S. Heath’s book, “ Labor and Finance Revolution.” can be obtained by sending $1.00 to his widow, Mrs. Louisa M, Heath, 1081 W. Monroe St., Chicago, Ill.
CHAPTER I.
THE CIVIL WAR PRELIMINARY TO AN INFAMOUS PLOT.
THE Earl of Chatham, England’s great statesman, once said, “ Show me the laws of a country and I will show you the condition of its people.”
Starting upon this proposition, we are led to the conclusion that the laws of our country are not in accordance with the principles of justice and equality, for there is nothing in the condition of the masses that denotes prosperity, but rather a tendency to poverty and demoralization. No period of our history has been marked by such general dissatisfaction.
Wherever we turn is discontent ; labor idle, or at least working on short time and low pay ; mill after mill silent ; furnaces cold and unproductive ; tramps filling our highways ; the gaunt wolf of starvation staring into desolate homes, and strikes against starvation wages—those forerunners of revolution springing up on every hand. On the other side, we see granaries bursting with the abundance with which God has fattened the land, palatial mansions rising in fabulous magnificence, and mountains of wealth—the product of half-requited labor—poured into the coffers of the idle and affluent. All over the land the wail of distress comes up from poverty-stricken homes crushing out the manhood and womanhood of human kind, blighting the beauty and buoyancy of youth, and destroying the faith of mankind in an all-wise merciful father. In a land of plenty, where the willing hand of industry has created untold wealth, why should that hand be paralyzed for want of the very wealth it has created ? Why should comfortable food, clothing and homes be denied to those who have produced these things in such abundance ? Reader, these are questions that must soon be answered before the tribunal of a long-suffering but much enduring people.
In view of these facts and the responsibilities that rest upon us as American citizens, I earnestly ask that you lay aside your prejudices, and with me briefly consider a few of the circumstances that have brought about this deplorable condition. It is within the memory of many of my readers when millionaires were not indigenous to American soil. But that period has passed, and today we boast more millionaires than any other country on the globe ; tramps have increased in a geometrical ratio ; while strikes, riots and anarchists’ trials constitute an exciting topic of conversation in all classes of society. There is no doubt but that the unequal distribution of the products of labor is one of the most fruitful sources of social and political disturbances.
Any rational person must admit that a nation’s prosperity does not lie so much in the amount of its wealth as in a just distribution of that wealth among those who have produced it.
That nation is the most prosperous whose laborers hold warranty deeds, rather than leases of their homes, and a hundred cottage homes and gardens owned by a hundred workingmen is greater evidence of national prosperity than a million of property in the hands of a single individual. The ownership of home is the great safeguard of liberty, and it is impossible for a people long to remain free who do not own their homes. History bears us out in this statement, and we trace with minuteness the connection between land monopoly and national death. God has implanted in the human heart an unquenchable thirst for knowledge and for liberty, a knowledge of that liberty which makes men free from the bondage of their physical necessities and breaks the manacles of that slavery which through all ages, the strong have imposed upon the weaker portion of mankind.
Since the day that Esau sold his birthright for a mess of pottage, crafty men have taken advantage of the physical necessities of their less artful brothers ; since that day, too, hungry men have been selling the birthright of their liberty for a mess of pottage which barely enables them to eke out a miserable existence. From the days of Esau to the present time two classes of people have existed upon this earth, the one class who live by honest labor, the other who live off of honest labor. From earliest times the one class have lived by tilling the soil, raising flocks and herds, delving in mines, working in wood, brass and iron, or deriving their subsistance from the waters over which God had given them do minion. The other class consisted of roving bandits, who under chiefs or leaders subsisted by swooping down upon and plundering the honest toilers ; sometimes a strong band would take possession of a rich territory, subdue its people and divide the spoils between themselves ; the chief became king, the brigands nobility, and the conquered people who only the day before were happy possessors of homes, became the slaves of this robber band who ruthlessly wrenched from them their homes and the products of their toil.
Today the same two classes exist as of old, not only in Europe but in this America, which gave such glorious promise of protection to its toiling people. True, the robber chiefs of our times have not by physical force taken possession of our toilers, and the products of their labor ; they did not swoop down upon these people with bayonets and bowie knives ; they did not say to them we have conquered your country and you are our slaves ; ah, no, the terms robber and brigand are too harsh ; civilization has advanced, and these terms are obnoxious to the refined intelligence of the age. The civilized brigandage of today is ashamed of its ancestry, but its appetite for plunder is no less ravenous and daring. Modern brigandage is carried on under more euphonious titles, and new methods of robbery are employed. Instead of “ robber king ” and “ brigand chief ” we have today the money king, the coal king, the cattle king, the railroad magnate, the telegraph monopolist and the lumber baron. Instead of spoils and plunders, we have interests, dividends, revenues and rents.
The system of American government as instituted by our fathers afforded little if any opportunity for robbery and oppression. Having successfully repelled their enemies across the water their prowess was established, and the civilized world stood in awe of the young republic. Not a crowned head of Europe aspired to clip the wings of the young American eagle, and for fourscore years the proud bird soared defiantly through the American heavens, or hovered above the sacred temple of our liberties. But, alas, in an evil hour the tempter came, the guardians were betrayed, and the very sanctuary of our liberties became the charnal-house of American freedom, and the market place of American honor.
Thirty years ago the American laborer was a prospective lord. He saw within his reach a home of plenty for his family, and an old age of comfort for himself. The bright picture before him inspired industry, economy and sobriety, and the laborer was a peaceful, sober, respected citizen. The condition of the American people less than half a century ago is graphically portrayed by Chas. Dickens, who, visiting in this country in 1842, wrote from Boston to a friend in London : “ There is not a man in this town nor in this State who has not a blazing fire, and meat every day for dinner, nor would a flaming sword in the air attract more attention than a beggar in the streets.” But today what is the outlook for the wage-worker of this country ? He sees before him only toil, unremitting, half-requited toil ; hope dies out in his bosom, despondency takes possession of his heart ; and unless sustained by a strong faith and a giant will he breaks beneath the weight of oppression, seeks relief in a suicide’s grave, or worse still attempts to drown his grief in the intoxicating cup and finally drifts into the great army of inebriates.
We are now led to the question, wherefore this amazing change in the condition of the working classes of this country ? There is a solution to this problem. As I have before stated the American system of government afforded little or no opportunity for robbery and oppression, but the vast plains and teeming valleys of this grand republic, with its innumerable sources of wealth, and millions of industrious population, was a coveted prize long sought by civilized brigandage. To obtain possession of this vast wealth and reduce an intelligent people to the position of slaves, was by no means an easy task. But the promptings of avarice were not to be silenced, and greed was on the alert for an opportunity to seize the coveted prize. The fatal opportunity at last presented itself. African slavery had been a source of contention from the very foundation of the republic, and its agitation finally culminated in the secession of a majority of slave holding states. The war cloud was gathering and the mutterings of dissatisfaction were portentous of a coming storm. Old men ominously shook their heads ; young men stoutly declared that “ the Union must be preserved ”; and mothers on bended knee clasped more closely their precious boys, and prayed God that the storm cloud of war might pass. But above all the prayers, wailings and forebodings, the attentive listener could hear from Wall Street the echoes of jubilant satisfaction, and harmonious preparations for an onslaught upon the industry and prosperity of the country. Nor was Wall Street alone in this exultation over a prospective civil war ; all along the line were ringing notes of exultation, even our beloved Michigan swelled the cry “ to arms !” led on by that great leader who startled the entire Christian world by his infamous declaration, “ That a nation is not worth a curse without blood-letting.” A declaration that must forever dishonor the name of its illustrious author.
Now do you ask why this exultation over a prospective civil war ? Do you ask why the money-kings of Wall Street and the great political chieftain of Michigan were so anxious, and positively joyous, when the guns were turned upon Fort Sumpter and the declaration of war sent its thrilling notes throughout the length and breadth of our land ? Do you ask why their hearts became like steel, and their thirst for human gore insatiable ? Why human life had lost its sacredness, and the thunderings of the war trumpet was music in their ears ? Reader, do you imagine it was because of their great love for the dusky toilers in the cotton fields of Mississippi, or because the finer instincts of their nature revolted against the cruel system of African slavery ? Do you suppose the story of Uncle Tom and Little Eva had touched their hearts and they had sworn vengeance upon the perpetrators of such cruelty ? No, no ; the money kings of Wall Street, and the great political chieftain of Michigan, were not the men whose hearts were touched with pity by the cries of distress. Their love of gain had stilled the finer instincts of their nature, and they rejoiced because they saw in the preparation for war their long-coveted opportunity for plunder. The calamity of war must bring its necessities, and through these necessities they determined to subjugate their unsuspecting brother men. To accomplish this it became necessary to obtain possession of the national finances. As blood, the circulating medium of the body, is the life of the body, so they knew that money, the circulating medium of the country, was the life of the country. Its industry, its education, its morality, in truth, its very life depended upon its medium of exchange. Controlling it, they could inflate or depress the business of the country at pleasure, they could send the warm life current through the channels of trade, dispensing peace, happiness and prosperity, or they could check its flow, and completely paralyze the industries of the country. They knew their opportunity was at hand, and the tidings of war that blanched the cheek and sent terror to the heart of the multitude was to their ears sweeter than the music of the spheres.
Scarcely had the war cloud broken ere the gold and silver money of the country disappeared. True to the history of metallic money in all ages, in the hour of peril, of a country’s greatest need, her gold and silver money always takes flight. What had become of it ? Why Shylock had obtained possesion of it, for what purpose we shall see hereafter.
The necessities of the war required vast sums of money ; but the treasury was empty, the gold and silver money of the country had fled. What was to be done ? The government was in duty bound to suppress the rebellion, to defend herself against the aggressions of her enemy. She must call out troops, clothe, feed and provide them with munitions of war. She must equip hundreds of thousands of soldiers to to defend the liberties that had been entrusted to her keeping. But where should she derive means for this vast expenditure, where, in her distress, should she look for succor and support ? Where, indeed, could the government look except to her own moneyed classes ? Did not Wall Street rejoice in the declaration of war, and loudly protest against the secession of the slave States ? Surely, Wall Street would come to the rescue, and pour out her treasure in defense of the government. So said justice, so said patriotism, but history tells usquite another story. Neither American nor foreign capitalists would loan money to the government upon any reasonable terms. True the banks would loan their notes at 20 per cent. discount, that is, they would exchange eighty dollars of their notes for one hundred dollars in government bonds, bearing a high rate of interest, payable in gold, and backed by the government ; but they had not the power to make even these notes good in the hands of the soldier. Foreign capitalists would not at that time loan us any money, for they hoped and expected to see the republic rent in twain and the star of our liberty sink in a night of anarchy and blood.
Words are inadequate to express the hopeless condition of the country, and it would be almost impossible to give credence to the demands of avarice, were not its authenticity sustained by the most reliable records. From Appleton’s Cyclopedia for 1861, page 296, we learn that the money kings of Wall Street graciously tendered loans to the government in her distress at from 24 to 36 per cent. interest—these same money kings whom today we hear quoted as those generous, patriotic capitalists. Why, sirs, the South itself was not more formidable and determined in the preservation of her slave property than were these Shylocks in their determination to wrench from the government in her distress, such usury as would have put to shame their world renowned ancestor. On the one hand appeared the bristling steel of the enemy ; on the other, disguised as a friend and urging on the war, stood Shylock clutching his gold and demanding therefor a rate of interest that would drain the life blood of the nation more effectually than the bullets of a Southern foe.
But what was Shylock to do ? The gold and silver of the country were in his possession, and they would not serve his purposes unless he could loan them to the government at exorbitant rates of interest. Knowing the necessities of the government these Shylocks determined to persist in their demands, for they had planned through the misfortune of the government to enrich and aggrandize themselves. This was why they rejoiced while others wept, this was why the tidings of war brought gladness to their hearts. By hoarding the gold and silver of the country they thought to compel the government to accede to their demands, and while the soldier was giving his life on the battle field they would gather to themselves riches and power.
But the great leader, Lincoln, was not to be baffled ; he loved the people better than Shylock, and justice better than oppression. From the constitution he read, “ Congress shall have power to declare war.” Again he read, “ Congress shall have power to coin money.” Then to the world he declared that Congress would coin money, and that the government, at whose head stood the fearless Lincoln, would not submit to the infamous demands of Shylock. Following this declaration came the enactments of July 17, 1861, and February 12, 1862, authorizing the issue of $60,000,000 treasury notes, not bearing interest and payable for all debts, public and private. These first issues of greenbacks constitute the demand notes, which, unlike all subsequent issues did not contain the exception clause, consequently they have always been at par with gold, and establish the fact, that had it not been for the exception clause on the greenback they would have always remained at par with gold. Wherever gold went these demand notes could go, even into the coffers of the bond-holders. They paid his interest, paid duties on imports, the millionaire took off his hat to them, and the banker made obeisance.
The issuance of this money at once brought relief to the country. With it the soldier was paid for his services, and his equipments furnished. Light began to break through the darkness that spread over the country, the destitution of the soldier’s family gave way to moderate comfort, and although the pall of death was frequently spread at his door, its terror was relieved by the assurance that the government had made provision for his family. With an abundance of money, not even the blight of war could check the prosperity of the country, save in those sections desolated by its immediate ravages. Commerce, industry and education received a new impetus, and flourished as never before in the history of the country.
But Shylock was sullen and disconsolate, having failed in his scheme to rob the people through exorbitant rates of interest, he immediately entered upon another scheme of brigandage which even the adroit Lincoln seemed unable to fathom. Having hoarded the gold and silver of the country, it was through this channel, if at all, he must despoil the country. Now, since Congress had made provision to supply the country with government money, there was no longer a demand for Shylock’s hoarded gold, and his purposes seemed thwarted. But greed neither slumbers nor sleeps, nor did Shylock rest until his bandits had an appointed rendezvous. We find that only four days after the passage of the legal tender act to supply the country with government money, a bankers’ convention was held in Washington, consisting of four delegates from New York banks, three from Philadelphia, and three from Boston. Shylock was alarmed ; he saw in the legal tender act a friend to the people, that it would transfer the monopoly of the money from his hands to the control of the people, he saw in it a precedent which, if established, would forever after enable the government to relieve itself and the people without submitting to his usurious extortions. He knew, too, that the government supplied with its own money would have no occasion to call from its hiding place his hoarded gold, unless by some means he could create a market for it. This, then, was plainly the object of that notable bankers’ convention, to create a demand far Shylock’s hoarded gold. Subsequent legislation tells us how well they succeeded.