Saint Mary's beacon. [volume] (Leonard Town, Md.) 1867-1983, 1878-10-31

the one kind, Treasury note bearing
interest. and receivable for all dues 90
the Government the same as coin. and
an act OF Congress to that effect was
passed June 80, 1912. Similar issues
for various amounts were made under
diverse acts Of Congress from 1912 TO
1917. Thus the Treasury note had lis
origin in Democratic Congress and un-
der Democratic administration. The
system worked admirably. afforded re-
lief to the people and enabled the Gov
eminent 20 prosecute the war of 1879
10 . successful teFSniBation.
The moneyed interest of the country.
however, was not idle in the meantime.
II again succeeded in obtaining char
ter for a United States bank and the
second United States bank was estab-
lished in 1915. The Money Power.
through the United States bank and its
branches and the State banks, which
were controlled by il, for twenty years
exercised supreme control over the cir
cuIation of the country. and through
that over its business affairs; and dur
ing the whole period the people were
subjected TO a continual round of ex-
pansions and contractions, accompanied
by four suspensions of specie payments
in 1919, 1925, 1884 and 1887, occas-
ioned each time widespread disaster
and distress.
No further issues Of Treasury notes
took place until after the DESTRUCTION Of
the United States bank In 1886, which
was brought about through the instru-
mentality Of the Democratic party. An
issue Of Treasury notes then followed
in 1887, during Van Buren's admInis-
tration, and subsequently, at various
times up TO 1861. Almost the last act
of President Buchanan's administration
was to authorize an issue, March 2,
1861, Of $40, 600, 900 of Treasury notes
to provide means for the incoming ad-
ministration. The Treasury notes thus
issued were made receivable in pay
ment for all debts due TO the United
States when offered, and in like manner
given in payment for any sum due from
the United States, when payment in
that mode was requested, and were
convertible into stocks or bonds.
1t will be said that the Treasury notes
issued during the period bore interest
and. therefore, differed very materially
from the greenback now in use. That
is true, but il does not affect the sys-
TEN. The fact that the aon-iRferest
bearing Treasury note, recommended
by the Committee of Ways aud Means
IN 1912, in their report above referred
10, was not adopted by the House, as
well as the Interest-bearing Treasury
note, was doubtless due to the hostility
of the banks, animated by the same mo-
tives that now prompt the National
banks to wage war on the greenbacks.
The following extract from letter from
Jefferson to the chairman Of the Com
mittee of Ways and Means ofthe House,
dated June "a, 1918, may be adduced
as additional evidence that the non-in-
terest bearing Treasury note was Dem
ocratic suggestion. He said the credit
of the interest bearing Treasury note
once established, "others might be emit
ted bottomed also on tax, but NOT bear
ing inferssf; and il the credit faltered,
open public loans, on which these bills
should alone be received as specie"
And 1t will be seen further on that the
substitute offered by Mr.. Vallanding-
ham, of Ohio, TO the legal tender bill OF
February %, 1862, which embodied the
views OF the Democratic side of the
House, provided for an issue of Treasu-
ry notes, not bearing interest.
III. The Democratic party has uni
formiy opposed paper currency issued
By prirafe corporations. The hostility
OF the Democratic party to a paper cur
rency issued by private corporations is
so generally understood that it itisscarce-
ly necessary to more than reler 10 a
few facts touching the subject. Its hos
tility may be said to have begun as far
back as 1891, when the FIRST United
States bank was established on the re-
commendation Of Alex. Hamilton, the
FIRST Secretary Of the Treasury. Ham
ilton at that time was at the head of
large and formidable party, of aristo-
cratic notions and tendencies, which
favored strong and splendid govern
ment, similar TO that OF Great Britain,
and believed that National bank would
conduce to that end. The bank, how
ever, was not established without op-
position. Jefferson, who was Secretary
Of State, gave written opinion deny
ing the power ol Congress to incorpo-
rate banks of issue, and Madison, who
was in Congress, opposed it IN a pow
erfui speech as violation Of the Con-
sti,ution.
At later day, when the charter of
the second United States bank expired,
its renewal was defeated by the Demo
cratic party under the patriotic leader
ship OF Jackson and Benton, but only
after one of the most desperate political
struggles recorded in the annals of The
Nation.
II was impossible at this time to de-
stroy the banks of issue, which had
sprung up all over the country under
State authority, so deeply had they be-
come rooted in the structure OF Ameri-
can society, but everything possible was
done by the Democratic party 10 cur
tail their power for mischief. In 1886,
under Jackson's administration. the "a
nous 'sspecie circular" was issued.
which ordered the agents Of the Gov
ernment for the sale Of public lands to
take nothing in payment but specie, and
in 1870, under Van Buren's admin
istration, the Independent Treasury
act was passed. This act took IRON
the banks the custody Of the funds Of