The anti-monopolist. [volume] (Saint Paul, Minn.) 1874-1878, 1878-06-13
WENDELL PHILLIPS POSITION.
The National Currency to Rest on the
National Debt.


Men doubt the greenback theory on
account of its supposed novelty. In
finance. they say, we prefer to stand
in the old ways. and trust to methods
that have stood the test OF long trial.
This is exactly the claim we Green
hackers make: ours is the old way,
and one which has stood the test of
years of trial.
We propose to let the national cur
rency rest on the national debt. We
propose to let the greenback represent
and rest on the national wealth. Old
fashioned men. hoodwinked by
journals which capital owns and edits,
start back aghast. They say they
distrust new tricks"
The fact is, ours is not a new trick.
We are only borrowing the plan of
the venerable Old Lady Of Thread
needle street, that is, we take for our
model the bank of England. We
Greenbackers are fossil, old
fashioned. conservative party.
What we mean is this. We. the
national party. only ask congress to
model our currency on the sound half
of the method of the bank of Eng
land--a bank that specie mongers hold
in especial reverence. What is that
method
MsWhen Sir Robert Peel remodelled
the bank Of England in 1874, this was
his plan. He allowed the Bank to
issue bills to the extent Of fifteen mil
lions pound sterling (tl5 600, OO0)
the government of Great Britain
owes the bank. ON Il government
debt rest the first hundred million
dollars Of British paper! and it has
proved the most trustworthy basis in
the known world. Any paper cur
rencv after that hundred million the
bank must have gold for. This sec
ond plank in its foundation has proved
so unstable that thrice since 1874,
government has been obliged to step
in and give it illegal relief.
But the strong corner stone of the
Bank of England is the Government
credit. This is what we propose as
the corner stone OF our currency
government credit. England has
tried MEASUREMENT for us and shown
It's perfect safety.
Bagehot. former editor of the Econ
onist, in his book on the bank (''Lom-
bard street J, explains how it's paper
is good always and all the world over.
He shows it isnot SO because the world
knows or cares, whether there is gold
in the bank vaults OF not. He tells
us that every business man knows
that Il bank Of England five pound
note represents the government of
Great Britain: that government has
shown on a score of occasions that ii
will never let the bank fail. Practi-
cally speaking, therefore. that five
pound note is guaranteed by the gov
ernment. and represents all its wealth.
This is the reason, rs Bagehot shows.
why it is current wherever trade ex-
lists.
Now this is exactly our plan. Our
greenback shall represent all the
national wealth. 1t shall be current
because every business man shall
know the government will never let
it be discreditsd.
Does any man reply. it has stood
discredited the last fifteen years !
So England paper did from 1867 TO
1920. But that never really shook
her credit. Neither will our mistake
shake ours. Does any man say
"England's" debt may be a sure ba-
sis for currency, but ours would not
be" To that reply, let all such low
ers of kings and distrusters of Demo-
cratic institutions 60 where they
belong and nestle in cowardlv safety
at the foot of the ear. | shall never
allow that the debts of the tories and
! kings are any more sure to be paid
: than the debts Of the people. The
stock lists show that just in proper
ton that governments become popu-
. lir and rest on the whole people. that
Just in that proportion do their bonds
rates high in the market.
WENDELL PHILLIPS