20 MUTUAL BANKING. 



for the sake of argument, that the people of Massachusetts, taken as 

 a whole, do actually own property to the value of -S()00, 000.000. Esti- 

 mating as we have done, the total value of the circulating medium 

 at .*20.000.000, it would follow that there is one dollar of currency 

 for every thirty dollars of taxable property. This is our second 

 point. 



3. If Mr. Kellogg's statements are worthy of confidence, there 

 are in the city of Boston 234 individuals who are worth, in the ag- 

 gregate. S71. 85.5,000. or property to the value of about three and 

 one-half times the amount of the whole circulating medium of the 

 commonwealth. This is our third point. 



Having stated the three points upon which our reasoning is to 

 turn, we will now suppose that these individuals in Boston, or 224 

 other persons of equal wealth, residing either in Boston or in other 

 towns or cities in the state, see fit to combine together for the pur- 

 pose of bringing the whole property of the state (SGOO.000.000) into 

 their own possession. They may accomplish their object by the 

 following simple process: Let them gradually buy up desirable 

 real estate situated in various parts of the commonwealth, to the 

 value of 640.000,000— double the total amount of the circulating 

 medium. Then let them sell this real estate to different persons, 

 taking mortgages for half of its value on the property, and stipu- 

 lating that the payments on the mortgages shall be made, all of 

 them, on a certain specified day. Here is the whole story: for mark 

 the consequences! As the day for payment on the mortgages ap- 

 proaches, money will grow scarce, for the reason that the purchas- 

 ers of the real estate will be preparing themselves to meet the 

 claims upon them; money will, by consequence, rise rapidly in val- 

 ue; trade v/ill be gradually blocked up: and men of undoubted 

 wealth will be closely pressed. If — and they probably will not— but 

 IF the purchasers of the real estate actually pay their debts when 

 the day comes round, then the 224 confederates will have all the 

 money of the state in their hands. Meanwhile the other ordinary 

 debts of the comiuuiiity— debts which arise; naturally— will have to 

 be paid also; and mon<'y, the only legal tender, will be required in 

 order to effect their payment. But as no money will he obtainable, 

 the.se last debtors will fail and their property will be sold under the 

 hammer at a fraction of its true value to satisfy their creditors. But 

 who will buy this properly? Who besides the 224 confederates will 

 have any available funds? Tiiese 224 individuals, by their opera- 

 tion, notwithstanding the los.ses they will inevitably meetwilh^ 

 will thus obtain control, by means of their Mj,0<)0,0(K)— a little less 

 than one-half of their aggregate property— of the greater part of 

 the propf'rly of the state. There is no danger that so e.xtensive an 

 operation will ever lake place, for transactions like this would con- 

 vulse soci<!ty to its foundations, and would necessarily be accom- 

 panied by repudiation, revolution and bloodshed. But similar 

 operations on a smaller scale are taking place every day. It is 



