The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1878-06-06
WENDELL PHILLIPS.

A Terse Letter ON FInanee-The Currency Should
Represent and Rest on the NatiOHNl Wealth.
Wendell Phillips has addressed the
following letter to the editor Of the Bos
ton Standard
"Men doubt the greenbaCk theory OF
account of its supposed novelty. II
finance, they say, we prefer to stand il
the old ways, and trust to methods thai
have long stood the test. This is exact
ly the claim we Gree hackers make
ours is the old way, aud one which has
long stood the 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
owned and edited by capital, start back
aghast. They distrust new tricks
"The fact is, ours is not a new trick
We are only borrowing the plan of the
venerable lady of Threadneedle street
that is, we take for our model the Bank
of England. We GreenbaCkers are a
fossil, old.fashioned, conservative party.
"What we mean is this: We the Ma
tional party, only ask Congress to model
our currency on the sound half of the
method of the Bank of England-a bank
that specie mougers hold in special rev.
erence. What is that method2
"When Sir Robert Peel remodeled the
Bank of England in 1874, this was his
plan: He allowed the bank to issue
bills to the extent of fifteen million
pounds sterling, without one ounce of
gold in its vault. That sum-and now
we believe it is &16.0O000O-the Govern.
meut of Great Britain owes the bank.
On Government debt rest the first $780,
100000 of British paperl And it has
proved the most trustworthy basis in the
known world. Any paper currency after
that hundred million the bank must
have gold for. This second plank i'll its
foundation has proved so unstable that
thrice since 1874 the 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
cornerstone of our CurrenCy-Govern-
ment credit. England has tried the ex.
pertinent for us and shown it's perfect
safety.
"Bagehot, former editor Of the Econo-
mist, in his book on the Bank ('Lombard
streetO, explains how its paper is good
always and all the world over. He shows
it is not because the world knows or
cares whether there is gold in the bank
vaults or not. He tells us that every
business man knows that's Bank of Eng
land fve-pound note represents the
Government of Great Britain; that Gov
ernment has shown on score of oCca-
sions that it will never let the Bank fail.
Practically speaking, therefore, that FIVE"
pound note is guaranteed by the Govern
ment, and represents all its wealth. This
is the reason, as Bagehot shows, why it
is current wherever trade exists.
"Now this is exactly our plan. Our
greepbaCk shall represent all the nation
al wealth. 1t shall be current because
every business man shall know the Gov
ernment will never let it be discredited.
"Does any man reply, it has stood dis
credited the last fifteen years! So Eng
lands paper did from 1897 to 1920. But
that never really shook her credit, Nei-
ther will our mistake shake ours. Does
any man say 'England's debt may be a
sure basis for currency, but ours would
not be2' To that l say let all such low
ers of kings and distrusters of democratic
institutions 60 where they belong, and
nestle in coward safety at the foot Of the
Gar. 1 shall never allow that the debts
ofTories 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 popular
and rest on the whole people, just in the
same proportion do their bonds rate high
in the market"
WENDELL PHILLIPS.