The Rock Island Argus. (Rock Island, Ill.) 1877-1885, 1877-05-23
The Financial Question.


Hard Money Currency" "Al the masses
care for is a currency redeemable in cur
rency. Thatmakes it at once safe and ex-
pansive. A local bank could get par credit
for half million Of notes, il it was known
that it kept even hundred thousand dol
lars of gold in its vaults to redeem Its notes.
This reserve fund would not be idle capital,
IS some ignorantly contend, but 1t would
earn three times the per cent. OF the same
sum invested in real estate, and yet would
be ample security for the notes issued upon
it in the ratio of five to one.
That is to say, that 100000 10 gold will
redeem 100000 OF bank notes. Let us
see the practical result Of this ingenious,
but fraudulent, sophism. A has farm
which cost $5,000-all he is worth. lie
goes to this wild cat bank to borrow
$25, 900 Of its notes, and offers as security
a mortgage on his farm, which, he says,
''is ample security" for the SUN he wishes
to borrow, The cashier says: We loan
money on mortgage to accommodate our
customers, but only to one-halt the value
Of the premises mortgaged. We Will loan
you 81, 500 on your mol tgage, and that is
all we can risk" A replies: Then you
have no confidence in my honesty and my
intention to pay my note when 1t natures.
Give do not doubt your honesty, but
we know that it would be impossible for us
10 realize $4,000 by foreelosing a mort
gage on your farm, which you bought a.
wear since for $4,000" A.-"Your argu
mept is logical aud it seems to me that
the producers of wealth, who think that
banks of circulation can reoeem $500,000I
of their notes with 100000 of gold are as
completely duped as this bank would be if
it loaned me SIS, 900 and expected to real
ike the money by the sale OF my s., 900
farm" But to return. This state rights,
hard money aud Tilden journal has forgot
ten the sage admonitiOns Of Jefferson, Jack.
son and their host of apti-bank compeers.
against the banking and funding system
advocated by Gen. Hamilton, which rob the
producing classes for the benefit of the
capitalists. This editor is for wild ca"
banks land it is to be feared that most OF
the Democratic journals are OF the same
type) of circulation, though history proves
that they have always failed to redeem
their notes when the demand is general, as
il ever has been and ever will be when
public confidence Is shaken in their ability
to pay "fue or even three dollars with one
dollar" The editor says: This reserve
fund would earn three times the per cent.
of the same SUN invested in real estate.
This is true. But why should the banker
have this exclusive privilege over the in
vestments Of the producers of wealth? 1t
is legalized system of spoliarion which
enables capital to rob labor by making the
dupes of these bank swindlers believe they
can pay three dollars with one dollar.
Labor asks no advantage over capital. 1t
leaves this contest to be settled by demand
and supply; but it demands the repeal OF
all laws-so called-that enable capital to
rob it OF its just rights. The producers Of
wealth have long been the dupes Of the
combined capitalists, but this greenbacL
question has opened their eyes and they
begin to see that bank cannot
pay three dollars with one dollar-much
less that 1T would be ample security fol
the notes issued by it IN the ratio OF five
to one, as this sage editor tells his read
ers In the same leader the editor says
There is not money enough in the country
but issuing more promises 70 pay Is only
going further IN debt and driving money
further from our Shores" And yet il
another article, in the same issue, he says
I'VE are for free banking under pIope
state restrictions. and upon the primary
condition that every bank note shall b,
payable in gold on demand at the counter
of the bank by which it was issued. Thi
is the stereotyped syren song of these banl
confidence men" and the press tina
gives it publicity,) ever since banks Of cir
culation grew out OF banks OF discount an
deposit--the only legitimate system o
banks that ever existed. Now il returnin
20 wild ca" state banks is not PROPOSE
ton for issuing more promises to pay an
going further into debt"-pray what wi
you call il? The primary condition" t
pay in gold on demand" is easily printe
on these notes Ut the confidence men,
but to comply with the boasted "primar
condition" is impossible. Verify, thes
bank shyiocks will again have lucrativ
business If they can succeed, not 10 "bul
dosing the people, but in keeping aliv
that fatal aud unaccJuntable belief, in III
minds of the masses, that they can pa
1--WE dollars with one dollar.
Ii is such financial theory as the on
under discussion, when advocated by tn
Democratic press, that misleads the ran
and file of the party, and enables tn
money power to riot in public plumber.
There are some Democratic editors, /
strong Republican counties, who are greer
back men but who, we're they to advocat
the system Of supplying the deficit of col
with greenbacks, would lose patronage
Such patrons OF the press mistake thei
true interest. They should be proud OF a
editor who will discuss, and encourage tn
discussion, of the great financial and olhe
questions Of the times. This Is the wa
TO discover truth-the object of all homes
men of all parties. 1t is said that homes
men will obey tie laws be they good Q
bad. And yet it is fact that SOME law
are violated because they infringe on tn
fundamental principle OF law, which Oiser
thus defines: Law, properly understood
is no other than right reason, agreein
with nature, spread abroad among all meu
ever consistent with itself, eternal, who's
Office is 10 summon TO duty by its com
mands, to deter from vice by its prohibi
tiOns. In contradiction to thl
law, nothing can be laid down, nor does
admit OF partial or entire repeal Nor Ca
we be released from this law either by yot
of the senare or decree of the people
Nor does it require any commentator be
sides itself. Nor will there be one law a
Athens, and another at Rome, one now
and another hereafter. but one eternal
immutable, law will embrace all nation
and at all times And there will be on
common Master, as it we're, and Ruler c
all, namely, Goa, the Great Originator
Expositor, Enactor, of this law; whic
law whoever will not obey will be fyin
from himself, and, having treated wit
contempt his human nature, will in tina
very fact pay the greatest penalty, even
be shall have escaped other punishments
as they are commonly considered. Jesu
said: LAS ye would that men should do t