The weekly clarion. [volume] (Jackson, Miss.) 1863-1882, 1874-05-28
TIE CURRENCY!
Letter on Finance
PROM
SENATOR GORDON, OF GEORGIA.
The Heroic Remedy Heroic Ruin.
Shall we have the Peoples Money
or be Taxed for National
Bank Notes?
Letter on Finance
The Heroic Remedy Heroic Ruin.
UNITED STATES SENATE CHAMBER.
WASHINGTON, NAV. 1874.

DEAh OENERAL. L our letter, Will
many others from different sections max
ing like inquiries, in reference to Con
gressional action upon the all-absorbing
subject of finance, is before me. | vii
ask you to give my letter to the public fo
what it is worth. Ii the positions | as
sumo be correct, and if my apprehension
for the future OF the industrial Interests
of this country be well founded, it is higt
time for the masses who produce the ma
tons wealth to organize for their own pro
lection.
Let me make at the outset two observa
tions
1st. l hold that whenever a govern
ment based on the principle Of equal rights
and privileges, assumes the sole right oil
furnishing "A circulating medium, it is
bound to furnish such Il medium as VIII
confer no special advantages upon any,
but general benefits upon all classes of it.
citizens. No higher duty attaches to
Government; and il is no less bound
while exercising that function, to protect
every class against partial and discrimi-
mating financial system than to enforce
the laws for the protection of life and prop
erty, or for the rectifcation of disorder.
1t in arrogating to itsel this sole and
| high prerogative Government forces upon
the people system which taxes industry
| for the benefit of non-producers, it not
only fails in the first essentials Of good
government but is guilty of absolute tyran-
ny.
| My second observation is this: If any
| civilized country where the use of the
ballot was allowed has ever been cursed
with Il more unjust, partial, and discrim-
| mating financial system, than our national
bank system, or one more perfectly adapt
ed TO enrich the non producer by robbing
the producer, | do not think history gives
any account Of it.
The General Government assumes the
sole right OF furnishing for the people
circulating medium, and protects that
medium against all competition by high
protective tariff No association of citi-
zens, no corporation or State is permitted
to issue any bills, upon any security or
basis whatever, except upon the payment
of prohibitory tax. If the State Grange
Of Georgia or Wisconsin should desire to
sell, when subscribed by its members,
so, 900 bales of cotton, in the one case,
or 500, 900 bushels of wheat, in the other,
for gold, and to issue bank bills thereon,
thus establishing specie payments, and
securing a local currency which would
remain in the State, it would not
be permitted to do so, except upon
conditions which amount to a prohib-
ton.
But the Government not only protects
the national bank circulation against COM
petition by any other bank, but confers the
L l. T. r.
of its citizens practically sets up and
supports by law monopoly of the power
and profits OF banking, than which moth
ing is more destructive to the general well
fare. If this system Is to continue, it is
impossible to resist the arguments in favor
of its being made free. Ii a bond of the
United States Is good as a basis of circu-
latiOn in the hands of a, 1t would be diff
ficult TO explain why like bond is not
good for New England and the money
centres, why are they not good for the
South and the Wes,? What would be
thought OF a government that would con-
fer upon a certain number of its citizens
the sole privilege OF producing wheat, or
manufacturing wool or cotton? But mo
fatal, if possible, than either of these to
the general prosperity is the monopoly of
the circulating medium of the country;
for circulation is to our productive indus
tries what the vitalizing air around us is
10 animal life.
Banking ought to be free upon princi-
pie, and free banking would be better,
doubtless, than the present monopoly for
the general interests; but / toiSh to record
l,.y prediction aO,V that even free banking
under the national bank system ,0iU neUer
qive to the country the relief 50 generally er-
pected.
Letnot the South and the West be de-
luded with the hope of cheap interest as
long as the present national bank system
lasts. however free it may be made. As
long as it costs $115 in greenbatks to buy
bond upon which only $50 is issued in
national bank currency, it is self-evident
that the sections which must purchase
the bonds will only lessen their loanable
capital by such investments. A large
portion of these bonds are the property
of European capitalists, and the bulk of
those not so owned is held in New York,
Boston. and Philadelphia; notin States like
Illinois. Indiana, Georgia and Mississippi,
and therefore these capitalists IN the mon
eyed centres of the East would have the
lions share Of such system of free bank
ing. The policy proposed will be to some
degree incidentally beneficial to other
sections; but the Eost aUiH still control the
national currency under that system, and
anv general effort to purchase the bonds
nv other sections would only advance their
price. and, of course, the cost of the cir
culation issued thereon.
Free banking will be the captivating
title of the system; but its essential TEA
tnres will remain that of monopoly,
hostile to the genius of Republican insti-
tnt;ons aud the full and fair play of the
varied interests of free people.
LET me be clearly understood. Free
banking. even under our false and, to the
nroducer. fatal system, is more liberal,
and therefore an improvement upon our
, oresent exclusive aud cruel monopoly; but
"a measure of relief to the producer from
rr;nous rates of interest IL Is fraudulent
deception and contrivance
Marx the process. When the East and
renewed centres had bought the bonds al
. low nrice. the Government made these
IoOds the only basis of bank circulation;
e the present bond owners can now
an - the ereenbacks from competition,
- - will still hold the bonds and control
tbe yconntry's circulation, and thereby the
producers profits. .;t;on.
If there is any answer TO Inese p s .h;s
and this conclusion, no apoiogist ~. an, 5
national bank system has yet given 10 anr
| I should be glad to have the answer
made. .bo. Tho Gov
eminent ought to do one Of two things u
4
both. o .ha +ax on