The Kenosha telegraph. [volume] (Kenosha, Wis.) 1860-1888, 1877-11-01
MR. ALLIS' PROPOSITIONS

few, but those are fundamental.
Is it true that the world suffers from
ignorance Of the true relations of debt
TO progress? Or does it suffer because
1t knows those relations too we'll? /
had myself supposed that if there be
any relation in life diligently studied,
amply Illustrated, and thoroughly I'M
derStood, it is the relation of debt to
progress. My own theory of that rela-
ton is that a debt judiciously CON
tracted will aid progress, but injudic-
iOusly contracted will retard it.
Mr.. Allis maintains that the idea Of
bank notes convertible into coin is a
pretense hold on the contrary, that
prOmissory notes issued not under the
pressure Of any great and disastrous
emergency, not convertible into coin,
are a fraud, no matter who issues them.
He says the banks have not always
been able to redeem their notes on de-
mand; that is true. Perhaps it is not
safe to assert they ever will be able to
do so. But it should be noticed that
the likeness between the present ma
tiOnal banks and
THE OLD STATE BANKS
is very Slight. The Old banks were
hostile to each other by force Of their
very constitutions. They had no in
ducement to uphold each other; they
had on the contrary strong inducements
to prey upon each other The banks
of New York, for instance, issued notes
secured by the stocks Of that State.
Wisconsin banks secured their notes
Eyr rho c+ooIrc of GaI14b oY,d yVocforD
States Whenever a Wisconsin bank
closed, a rival in business was extin-
guished, and as its securities were flung
upon the market, capital had new OPP
partunitieS for Investment. If the OPP
GRAFTON resulted in depreciating Mis-
souri, or Virginia stocks, it appreciated
by contrast, New York stocks. For
similar reasons the banks of New Eng
land were at least resigned when a
New York bank was driven to the
wall Each bank was obliged to pro-
tect it's own assets, by its own efforts
But
THE NATIONAL BANKS
all issue notes upon the same security
-Four hundred millions Of bank capital
and three times that amount Of private
capital are invested in that security.
National banks can fail in business
like other banks, and have failed. De-
pOsitors and other creditors Of the bank
may lose and have lost by such fail
Ures. But the notes Of such q bank
have never failed of redemption, and
cannot fail OF redemption until the ma
ti0nal securities fall at least 10 per
cent. below par value, and two billions
Of capital is interested. to see that such
securities donOt depreciate at all. Only
one bank, | believe, issues notes to the
amount of four millions. IF the Ma
tiOnal Bank Of Commerce Of New 7 Ork
were to close its doors to-day, the
streets Of the city might be thronged
by its dep08itors, but not q bill holder
would go near it. Its notes would cir
cUlate as freely tomorrow and next
week as they do to-day
Mr.. Allis may be right in affirming
that the debt Of q nation to it's own
people is the refinement Of debt and the
highest form Of value now known, but
happily or lnhappily there is no such
debt-neTer was and never will be-
What we call the national debt is debt
due from the whole people, but not q
dollar is due to the people. Some of it
is due to individuals among our people,
and some is due to individuals scatter
ed through the world.
BUT THE STRANGEST PROPOSITION
among Mr.. Allis' theses is that it Is the
business of government to see that we
have money IN abundance, poor money,
even it we can't get good. Upon this
proposition pause.
is it the business Of government TO
see that you and / have an abundance
Of money? If So government is sadly
iii arrears to me. [ have been more
than hundred thousand dollars short
all my life. Perhaps, however, no
more is meant by this proposition than
to affirm the duty Of government to
coin money sufficient fOT the business
wants Of the people. So stated, the
proposition is rather more plausible,
but not whit less unsOund. How
can the government discharge that
duty? If money is to be coined from
the metals only, then it is to be remem-
ber(d the government does not make
the metals, nor mine them. It can only
refine and stamp the goods brought to
its mintS.
But it may be said the vegetable and
not the mineral world SHOULD supply
TIE MATERIAL FOR MONEY;
that money should be made of paper
and not Of gold and silver Well adj
NIT for the sake of the argument that
the government can in time of peace
rightfully under the constitution stamp
upon paper the quality Of money; Of
course the government can make paper
in unlimited quantities and so can com
mand abundant material for money.
The Treasury Departments very capa-
cious. Suppose the department. were
packed full Of greenbacks to-day, and
each note WAS slammed rs of the yalne