The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1874-06-04
Gen. J. B. Gordon on the Currency Question.

Gen. John B. Gordon, United States Senator
from Georgia, has recently expressed his views
at length upon the currency question in let
ter to Gen. a. 81. Colquitt, President of the
State Agricultural Society. Only want of
space prevents the publication of this interest
ing document in full. For the benefit of our
readers, we give such extracts as it is believed
will place his views fairly before his numerous
admirers. After expressing his willingness
that his views shall be made public, he says:
eff the positions I assume be correct, and if
my apprehensions for the future of the indus
trial interests of the country be we'll founded,
it is high time for the masses who produce the
nations wealth to organize for their own pro-
lection. Let me have at the outset two obser-
vations:
"First. hold that whenever government
based on the principle of equal rights and
privileges assumes the sole right of furnishing
q circulating medium, it is bound to furnish
such q medium as will confer no special ad-
vantages upon any, but general benefits upon
all classes of its citizens. No higher duty at
taches to government and it is no less bound,
while exercising that function, to protect every
class against partial and discriminating fnan-
cial system than to enforce the laws for the
recti6cation of disorder. If in arrogating to
itself this sole and high prerogative, Govern
ment 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 tyranny.
"My second observation is this If any civ
ilized country where the use of the ballot was
allowed has ever been cursed with more un-
just, partial and discriminating financial sys-
! TEN, than our national bank system, or one
more perfectly adapted to enrich the non--pro-
ducer by robbing the producer, I do not think
history gives any account of it. The General
Government assumes the sole right of fur
nishing for the people circulating medium,
and protects that medium against all competi-
tion by high protective tariff: No association
of citizens, no corporation or State, is permit
ted to issue any bills, upon any security or
basis whatever, except upon the payment of q
prohibitory tax If the State Grange of Geor-
gia or Wisconsin should desire to SELL when
subscribed by its members, $4,000 bales of cot
ton, in the one case, or 100000 bushels of
wheat, in the other, for gold, and issue bank
bills thereon, thus establishing specie payments,
and securing local currency which would re-
main in the State, it would not be permitted to
do 80, except upon conditions which amount
to prohibition"
| A little further on he pertinently asks
"What would be thought of government
that would confer upon certain number of its
citizens the sole privilege of producing wheat
or manufacturing wool or cotton But more
fatal, if possible, than either of these to the
general prosperity is the monopoly of the cir
culating medium of the country; for circula-
tion is to our productive industries what the
vitalizing air around us is to animal life.
Banking ought to be free upon principle
and free banking would be better, doubtless
| than the present monopoly for the general in
terest; but wish to record my prediction now
that even free banking under the national bank
system will never give to the country the relief
so generally expected.
"Let not the South and West be deludcd
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 Sis
in greenbacks to buy bond upon which only
$50 is issued in national bank currency, it is
self-evident that the sections which must pur-
chase the bonds will only lessen their loaned
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,
moi in States like Illinois, Indiana, Georgia and
Mississippi, and therefore these capitalists in
the moneyed- centres of the East would have
the lions share of such system of free bank
ing The policy proposed will be to some de-
gree incidentally beneficial to other sections |;
but the East will still control the nations cur
reHcy under that system and any general effort
to purchase the bonds by other sections would
only advance their price, and, of course, the
cost of the circulation issued thereon. 80,
"sFree banking will be the captivating title
of the system but it's essential features will
remain that of monopoly hostile to the genius
of Republican institutions and the full and
fair nlay of the varied interests of a free peo-
pie.
"Iet me be clearly understood. Free bank
;np even under our false and, to the producer,
fatal system, is more liberal, and therefore an
Improvement upon our present exclusive and
cruel monopoly but as measure of relief to
the producer from ruinous rates of interest it
ia a fraudulent deception and contrivance.
"Mark the process. When the East and
money centres had bought the bonds at a low
price. the Government made these bonds the
only basis of bank circulation, and if the pres
ent bond owners can now retire the greenbacks
from competition, they will still hold the bonds
and control the country's circulation, and
thereby the producers profits.
eff there is any answer to these positions
and this conclusion, no apologist for this ma
tional bank system has yet given it, and
should be glad to have the answer made. 1t is
to nv mind clear that the Government ought
to do one of two things or both.
"First It ought to remove the tax on State
bank notes, and cease to attempt to furnish
currency to the people; or
"Second. It ought to make its own issues,
and not national bank notes, the money of the
realm.
GAS to State banks. If these banks were
allowed to issue three for one upon gold, it is
plain that interest would be lower; for bank
with 0,0OO gold, and circulation of three
for one can better afford TO lend its S3OO,0OO
at six per cent, than a national bank with
100000 in bonds, and 100000 circulation
thereon, can afford to lend at twelve per cent.
The difficulty is to confne these banks to the
amount of issue allowed by the law. Scotland,
for example, thought it safe to allow an issue
of four for one, and greatly prospered under
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