The workingman's advocate. [volume] (Chicago [Ill.]) 1864-1877, 1869-12-18
A New Monetary System,
CHAPTER 4V.-SEcrI0H |.
BY EDWARD KELLOGG.

THE AMOUNT OF SPECIE OWNED By THE
BANKS, AND THE INTEREST PAID By THE
PEOPLE ON BANK LOANS.
(coNTNUED.)
It is perfectly obvious that our legislative
bodies have founded our banking system on
false pretences-upon promises the banks
neither can, nor expect to fulfil. The only
reason why the banks can exist upon such
basis is, that the people do not demand
the specie for their notes and deposits The
government enacts law binding all debtors
to make their payments in specie, when it Is
perfectly well known that specie does not
exist in sufficient quantities to enable them
to fulfil the requirement. More than eleven
twelfths of the debts between the banks and
the people are contracted with a paper
balance, md have no reference to specie.
Of course, the only means Of paying them
is by balancing one paper note with another.
If the banks, or the people, or the govern
ment should in every case exact what the
laws require, it would be impossible to meet
the demand. If the three should exact
specie in payment for their obligations, it
would inevitably bankrupt them all, and
almost certainly cause starvation in the
midst Of abundance, if not civil war. If the
governments of the States as well as the
General Government should refuse to take
bank-notes in collecting and disbursing their
revenues, probably the people could not pay
their duties and taxes. The necessary
withdrawal Of specie TO meet these engage
ments would at once cause the banks
throughout the Union 10 suspend specie pay
ments. The need Of money would then
compel the people to petition the legislatures
Of their respective States to sanction this
suspension, and allow the banks to continue
to discount wfshout p1yIng specie on demand
They would, however, still be allowed to
charge interest upon all the Endorsed notes u
the people, received in exchange for the
bank.notes, which would then be avowedly
destitute of any basis of specie.
Can anything be more directly opposed
TO every principle Of Justice, than laws re
quiring the performance Of imPOssiblltles
! Laws which, if the people should attempt t.
execute them, instead Of promoting peac,
md happiness, would cause the CREATES
calamities that could possibly befall alton
It is essential = goo1 government that th'
interest and welfare Of the people shOulC
require the execution Of its Laws, and when
ever their violation becomes necessary to tn
uur lie Q :, it is selfevident that there j
something radically wrong in the govern
ment itself A government should neve
allow anything to pass as substitute 70
money; the tender itself should be equal il
amount to tie wants Of business. The laV
making gold and silver the only tender il
payment Of debts is well adapted to build u
and sustain mOnarchial governments, bt
cause il must infallibly accumulate Propert
in the hands of few. constituting aristC
cracies, which are essential TO this form {
government but the same reason tina
qualities it so admirably for this purpose
renders it incompatible with government
having for its sole object the welfare al
5 happiness Of the people.
F-~V