The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1876-03-08

from time to time the amount OF circulation
required by the wants OF trade. But indeed no
body OF men could be Entrusted with that
power" And yet he advises congress to con-
tinue TO copnde that power TO national bank
ers, especially under the late law OF congress,
which makes national banking free TO all
bondholders by depositing their bonds in the
treasury and getting 90 per cent OF their face
value IN national bank Currency req uiring re-
can be squeezed cut OF needy borrowers who
are brought INTO the clutches OF these "credif-
currency-nere evidences of debts due the
public by bankers equal 10 the bonded indebt-
edness OF the federal government less
their subsidy currency out on interest secured
by well-indorsed notes, and thus Induce very
business man 10 extend his business 70 Its at
remember that their currency calls for re-
demption in lawful money on demand; and,
as they have not the means with which TO re-
deem nc, they begin to contract discounts, call
Ing for payments of their loans, which con-
tracts the circulating medium, prod ucing a
pressure In business circles, then a crash and
q panic; and, having no means to pay their
notes In lawful money, they lock their doors
and coolly retire, sneering in disgust at the
lunatics who are fools enough TO i'm CINE that
the promise 10 redeem bank currency In green
performed. Such is the see-saw, the
up and down, expansion and contraction
policy and process of banks OF issue and IL is
10 these bankers that the gentleman from
maine WoulO mana over the power to regulate
the volume and value of money. This is the
result of studying political economy out OF
books in law office, where a rich creditor
q client is always welcome, no matter what
becomes of the poor Geluded debtor who wss
foolish enough 10 take the advice of the gen.
tleman from Maine, and trust the banks TO
of land and Of every commodity throughout
the country. Instead of wasting time IN study
Ing books on political economy. written In the
interest OF bank currency and NJ speculative
capitalists generally, the gentleman will find
1t more profitable 10 study the wants and in
terests of business apitaliss. Moreover, besides
having spent his time in studying
the interests of banks of il
sue, as he doubts the capacity OF the peoples
representatives to b5 trusted with csrryir z
out the fundamental law by which our acis
must be governed. IL would seem that he has
also been devoting some OF his attention TO
studying the views OF the Hamilton scho l of
statesmen, who, as l have SHOWN, doubted the
capacity of the people for self-gOyernment,
and thought that system of government best
which taxes are the rich and leaves them
TO protect the poor. Mr.. Chairman, / repeat
IL, Ii is this conflict between two widely differ
ent systems of government that makes this
contest necessary between full legal tender
money and bank currency requiring redemp-
ton in L. gal tender money. The contest is
not between gold and silver coin and legal
tender treasury notes; no conflict can arise
between them IL they are made by law to per-
form the same functions. The contts' is be-
tween
THE PAPER MONEY OF THE PEOPLE,
which does not need redemption in other
money, and the promissory notes of banks of
issue. The volume of legal tender money has
very safe limit fixed to II. Congress can not
pass any law, constitutionally, to pay out
money for any other purpose than to pay
constitutional and lawful demands on the
treasury, and IL is the duty of congress TO pay
debt at the earliest moment possible, that
from the reople to pay interest on suspended
debt for the want of par money to
pay 1t vito so long az the
make money, and regulate it value, by
making ii full legal tender; being the only
way In which congress can give IL fixed or
unhuctuating value. The great delusion OF the
gentleman from Maine consists in
mis- mistaking the medium of ex-
wealth. Money, or a legal tender, is not wealth
1t is simply the means of exchanging commod-
tiles and OF paying debts. Although it may
gal tender paper dollar, whoever gets it out OF
the treasury lawfully, must give dollar for
It, and being null legal tender, 1t will be GER
tain TO get him It's full denominational value
in exchange for II. Being based on all the
wealth of the country, including Its bullion or
coips 1t Is therefore q representative OF
d e value. But hs When gold coIn
portion Of the wealth of the
country, II must be rendered by weight ac-
cording TO its actual commercial value; the
weight. That the paper dollar may maintain
q steady unfiuctuating value, without being
affected by the change in values of the COM
modities 1t represents, IL is only necessary to
make IL, at the pleasure of the holder con-
vertible into certificate OF deposit or bond
pay able on demand, and bearing an accom-
dollar is made full legal tender, performing
all the functions of money, IL does not require
redemption, as there is notning superior
to 1t. The gentleman from Maine says that
"no wisdom Of legislation has been able to
avert the periodical Revision in trade com
mon to all commercial nations" 1 have shown
that the crash and panic of 1873 were caused
by an act OF congress, and not as formerly, I'M
Til 1852, by the banks suddenly expanding and
act of congress did it to maintain bank cur
rency; and so lar from 1.-The wisdom of legisla-
ton" having "been able 10 avert it," none has
been tried. On the contrary, legislation has
been made by congress since September, lS73,
increasing the evils of taking from the people
the necessary volume of circulating medium,
3 policy begun in 1859 In the interest OF bond
holders and bankers
THE MANIFEST REMEDIES.
The cause of a disease being known, it is
easy to know what remedy to apply. As con-
traction caused the crash and panic of 1873,
and has been carried on by the resumption
act Of 1875, remove the cause and the indus
tries OF the country will revive. For this pur-
pose propose: First, an act Internationally
repeating the resumption act OF January IL,
1916; second, an act of congress making coin
and United states treasury notes full or equal
legal tenders, leaving specific contracts to be
carried out or paid in such money as may
have been specifically stated In the
shi a3as a an act substituting
bank currency; fourth, an act making par
greenbacks convertible at the pleasure OF the
aol Ter into certificate o deposit or bond,
bearing a low or an accommodation rate OF
interest, which certificate or bond shall be
made payable in lawful money on demand.
The resumption act should be repealed, be-
cause 1T is causing still further contraction
of the circulating medium and is more and
more, day by day, increasing the difficulties
OF business men, decreasing the value OF
lands and of all commodities of barter; thus
giving money and currency more and more
an undue purchasing power. It's repeal will
have the effect of enabling bankers 10 put
their currency into circulation without any
fear of run on them for redemp-
ton, which will aid in reviving
the industries. 1t will prevent the
retiring national bank currency Qay-
ing idle in the bank vaults in consequence of
the stagnation of the general business OF the
In order TO lift bonds bearing an In
creased premium, in consequence of this re-