The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1882-02-16

100000 OF people no rights TO be looked
after and protected BY the Government
principal and interest OF the public debt should
be paid in tho same kind and volume of money
as was In circulation when these bonds were
first placed upon the market.
II England and Germany are disposed TO
pass laws permitting bankers, bOndholders
and money-lenders to oxtort money uniustly
from the business men and working classes, BY
making oil debts payable in gold coin, does It
follow that the United States should do the
same? When you talk about standard OF
value, you should remember that, since 1862,
gold, silver and legal-tender notes have all been
standards of value in this country, except for
the period between 1873 and 1873, when silver
was demonetized in the interest Of the bond
holders and money-lenders, and the Govern
ment was making every possible effort to de-
During these years. the nation was In :
delnge Of panics and bankruptcies, and relief
did not come until silver was remonetized and
the destruction Of greenbacks stopped.
DO you wish TO see return OF such times?
II 50, let your suggestions in regard to tho
currency be carried out. and you will soon see
u return.
The removal OF the tax on bank deposits II
also question Of doubtful value. According
to the late report Of the Comptroller OF the
Currency, the aggregate deposits are abont
81. 0s3. 000,O 900 in the national banks. This
money belongs to the people and tho banks get
the use OF most Of It for nothing, and they
have the interest derived from loaning 1t back
to tho people. Their loans and discounts
amount to 81, 46a, 022 800. Their capital stock
Is only about &463, s2l ,000 and nearly $780,
100000 Of this il invested in United States
bonds that are exempt from taxation.
They have given to them by the Government
without cost 4362. OOO, 600 OF bank notes. which
they loan ~ money. They pay no tar on their
bonds they get their deposits and notes for
nothing, and pay only the half Of per cent
tax on their notes and rs much more on their
tons in the nation and taxed the least, aud
they get their money for nothing, the bankers
are about the only parties who complain Of Ga
cessiye taxation.
There is another suggestion or two In your
report that 1t seems to me would be very inex-
pedlent to have adopted, and that is, to modify
the tariff, reduce tho revenues and defer the
payment Of public debt.
As you very correctly say, 1.-THE business Of
the country 80 thr.yes ~ to endure the onerous
taxation and yet grow in volume and In profits,
and still yield the Government surplus over
its Needs II the country is thus prosperous
and nobody complains OF taxation but the
bankers, aud tn, 70 is SO large surplus as to
"embarrass the Government to dispose of it"
debt? Why no. apply every dollar OF these
surplus funds to pay tho 3l5-per-cent. bonds,
and in three years have them all Cancelled, and
have the money now invested in them put into
business to employ labor. where 1t will bear its
portion OF taxation and contribute further to
the increased aud permanent prosperity OF the
country
/ am aware that s242, 900, 900 OF these s.
percent. bonds are held as security for Lank
circulation. and there is where the principal
source Of trouble arises but II you had SIM
ply suggested to Congress to pass IN act to
provide for issuing legal-tender notes to take
the place Of any retired bank notes, You would
not only have prevented any contraction Of the
paper currency, but greatly facilitated the rapid
cancellation of the remainder Of the public
debt, and settled all difficulties about tho cur
rency.
When the 3lk-per-cent. bonds are all paid
would it not have been q wise suggestion to
have made, to have Congress provide for in
vesting the surplus revenue sufficient to Offset
the balance Of the bonded debt 80 that to all
intents and purposes it would be oil paid within
the next few years2
The present revenues Of the Government,
with jndicious management, are sufficient to
practically cancel the entire public debt in seven
or eight years. It seems to me, from reading
your report, that these financial questions have
not received as careful consideration ut your
hands AZ they should have received, and that
you have looked at them from the standpoint
Of the banker. the bondholder and the money
lender, and not from that Of the masses OF tho
laboring people who create the wealth Of the
nation and have its debts to pay.
think il would be q sounder financial policy
to reverse the legislation you have advised.
Instead OF Withdrawing the coin certificates,
issue others on oil the gold and silver coin and
bullion that is presented to be exchanged for
avnA Il, -
either gold or silver coin, or legal-tendcr notes.
Instead of stopping the coinage OF silver
dollars, make its coinage unlimited.
Instead Of Withdrawing the legal-tcnder
quality OF tho grecnbacks and issuing the
paper currency for the banks only, retire all
bank currency and issue an equal volume OF
legal-tender notes to take its place.
Instead Of taking the tax of the bank de-
posts, put more on their circulating notes and
tax them ont Of existence.
ms cad OF reducing the revenues 80 ~ to get
rid OF paying the bonds. let the revenues in
crease and pay the bonds as soon AZ possible
Instead OF forcing the next generation to pay
part OF the public debt, let it be all paid by
this generation, and as soon ~ tho revenues Of
the Government will permit. Debts are bad
legacy to leave to posterity.
instead OF contracting the currency and
running business men and forcing laborers into
ideness, let the volume gradually increase per
capita as the population and business increases,
and thus secure to our country currency -
uniform in its measuring power - the yard
stick or pound weight, aud by this means keep
up the tide Of prosperity that 10 now spreading
80 benehcially over the country.
Let the legislation be for the benefit of the
people who create the wealth Of the nation,
and not solely for those who absorb that
wealth by monopolizing the currency.
see that Senator Sherman, who for four
years was in control Of the Treasury Depart
ment, has submitted bill to Congress to re.
fund the 81 per cents into percent. bonds,
PAYABLE after five years. The sole object Of
ent difficulty, and aid them to fasten the debt
on the people They must now purchase or
~ percent. bonds at premium or retire their
circulation, or new bonds must be provided for
investment to secure circulation. All through
MIR. Sherman's administration Of the Treasury
Department he managed the finances Of the
Government, % much as possible, in the inter-
Senator he il 1t work for them again.
From statements made both in your report
and previous reports Of Mr.. Sherman, VI the
probable amount OF surplus revenue, it il EVIL
dent that the 81 percent bonds can be paid in
less than four years. Why put them where
they cannot be paid then2 Why not manage
the treasury for once in the interests Of the
people, Auu uOl t00 UAukOtb cOaCly
My attention was called to the dangerous
power banks hold, and the widespread ruin
they can bring upon the country by imitation
and contraction, fifty years ago, through .
knowledge Of the NAL administration Of the
second United States Bank that bank, we are
told, paid a, 50O, 600 for its charter. It had q
capital Ut $3s, O0O, 900, With the privilege Of
issuing a OF currency to el OF capital. II was
40 rccklessly managed that, with &40. 0l0, OoO
loaned on ito promises to pay coin, y had ONLY
When this fact was discovered, the President
OF the bank had to leave country to save
his life.
THIS N
Proves beyond any rel
CHICAGO b NOR
Is By oil odds the best road Tor you to tax,