Northern tribune. [volume] (Cheboygan, Mich.) 1875-1885, 1878-10-12
Leaf of Financial, History.

Government should at once inaugurate a
vast system of internal Improvements which
will employ labor, develop the country, secure
increased production, and thus distribute to la
Dor through labor and for the benefit Of labor
instead of capital full 81, 500, 600, 000."
The above is from the platform of the
National Greenback Labor League as
published in the Advocate, and the SEN
timent.is repeated in most greenback
platforms, and is endorsed and advocated
bv the newsi apers and public speakers
of that party. Before the people of the
state OF Michigan endorse the proposition
they had better look over some of their
own experience in a similar line of bust
II ess.
From 1888 to 1916, while the people
were grooming under the hard times
which followed the panic of 81, the State
of Michigan was engaged in distributing
"to labor through labor and for the BEN
| eft of labor" the proceeds of a state loan
authorized by the ''five million loan act
to be expended for the purpose of I'M
provement within this state. There were
men in those days who believed that the
state should provide money adequate to
the full employment of labor, the equitit-
able distribution OF its produces, and the
requirements of business and who
longed for return of the paper money
prosperity of 1886, when everybody
thought himself growing rich. So the
Legislature authorized the Board of In
ternal improvements to loan portion OF
the moneys in the internal improvement
| fund to any banks giving security there
for to be approved by the Auditor Gen.
eral. And desiring to danish from Mich
igan, in accordance with the Butler plat
form. 1.-THE idiotic proposition OF making
gold and silver basis for money" law
was passed authorizing banks to suspend
specie payments, and still further to car
ry out the greenback theory, bank notes
were authorized to be received at par for
taxes. Having thus provided for money
adequate TO the demands of business, y
operations were commenced upon the
| Southern, Central and Northern rail
roads, and upon various other railroad,
wagon road, canal and river imprOv G.
ment projects. Money was loaned by
the state TO everybody and everything on
a plan substantially similar to that now
proposed by the Greenback party.
! Among Others a loan of $1,000 was made
in 1889 TO the White Pigeon Beet Sugar
Company, and the same year the state
bank of Michigan was incorporated with
a capital OF S2,000000, of With the State
owned one-half, and loaned money to in
! dividuals when desired to pay srbsrc-ip-
| tons TO the other half. The act of i'll
corporation authorized new issue OF
six per cent. bonds upon which to raise
the money TO go into this banking bust
ness; the income to the stale from the
railroads, canals and the banking and
loan business was set apart as sinking
fund for the payment of the bonds, and
the faith of the state was pledged for the
! payment OF the loans and the redemp-
| ton of the bills of the bank, but rs the
sinking fund did not grow very rapidly
it became necessary TO issue more bonds
and sell them to get money to meet the
interest OH the first. Paper money, how :
ever, was plenty and cheap as it was in
1886 before the collapse. and what tie
Greenbackers would call prOsp, r)us
times had been established by law. Still,
as the money became cheaper, Of course
more of it was needed to 10 the same
business with, and TO make the supply
adequate to the demand" the stale be-
gan the issue of Treasury notes for tie
benefit of The internal improvement
fund. They were made receivable for
all taxes aud state dues, which. under
theory of the GreenbackerS, should have
kept them at Il par with gold; but Ii
! didn't and the outcome of the whole
| ScnGine was. THAT when J4e EaTiot,s bank
bills and the scrip had become worthless
10 the people who, as the fiat moneyists
! say, had ''rcduccd them i'm labor" they
had their pockets full. In 1916 tn state
sold its railroads and quit he business,
and as the fruit of its experience in The
attempt ''tO distribute money to labor
through labor AM for the benefit of la
bOr," there appears i'm the constitution of
1850 expressl. prohibiting the state from
engaging in or lending its credit to any
such operations. Query-W Would tue
United States be any more likely 10 make
that sort OF thing pay than the State of
Michigan?-Sdginatv Herald.