The Iowa plain dealer. [volume] (New Oregon, Howard County, Iowa) 1867-1895, 1882-07-20
BANKS OF ISSUE.
They Should Be Suppressed,
and the Right to Issue All
Our Money Restored to
the Government.
Extract from n speech by Hon. Chas.
y. BrnmIl, IN the National
House Of Representatives.

Mr. Speaker, we live in a remarkable period,
in the arts and sciences, greater moral, social
and intellectual development than in all pre-
yious ages. We have progressed from the
Conertoga wagon to the locomotive, from the
primitive saer to the mighty steamer, from
message un foot to electricity by which the dy-
ing whisper may be waited from tile death bed
10 the four quarters Of the globe in the twink
Ing OF an eye. We live in an age that has re-
,ucel time ard space, brought mankind to-
gothsr from the remotcst regions OF the earth,
AMI sibordasted the elements to the use OF
man. thus enabling us To increase products and
east our burdens hundred fold.
We have advanced and progressed in every
thing except finance, |. q, We have multiplied
orr commodities or resources . thousandfod,
but have not Increased the system Of dis
frlbuting and interchanging these commodities
one iot. We are still adherng to the barbar-
Gus system OF barter, namely. intrinsic value
for value, varied only by portponcmcnt Of tho
delivery Of the value by promise 10 pay or
deliver ut some time in the future and this
promise made by corporations or individuals,
the creatures OF Government instead OF by the
Government instead Of rcscrvIng to the SOW
creign tue exercise and Use Of one Of its most
vital functions--and BY being permitted to con-
troll the currency or circulating medium, to ex-
ert practically a control OF the Interchange OF
every commodity that man creates or can util-
ile. We thus give to individuals the exercise
OF that sovereign POWER OF the Govefiiment
which enables them to control everything that
money can buy.
To this great question the tariff Transports
ton and wages are but incidents, monopolies
are subordinate, the social problem is contin-
gent and the moral aud intellectual status de-
pendent.
In discussing this question propose to not
only separate bank functions from the dovcrn-
nlent rs suggested by my friend from Ohio
MIR. ButterwortLl. but also to separate all Gov.
ernment functions from banks. What does
this bill contemplate? l contend that it CON-
templates the continuation OF the issuing func-
tlons Of the banks and the discount functions,
the deposit function, and the function Of ex-
change and transmission Of money.
The only one that we war upon is the issuing
function of the national banks. Therefore.
when tue gentlemen take up time by the hour
III discussing the other functions. and the evils
that may pereaauce come ii YOU interfere with
the deposit, the discount and the transmission
functions of the banks, they are consuming
time for nothing. There is no war ut present
upon any Of those three functions. but simply
upon the lssu ne Of money. This is not \
banking function il is aright that belongs cx-
clussels to the sovereign power OF Government.
/ will say that if we have banks at all, would
rather have the present national banks than any
ever knew Of.
| "a, here frankly that the misunderstanding
system ii the best banking system Of any we
have ever had. and, while l say this, realize
that the worst system we ever had WAS the Wild
cat State-banking system.
Now, sir. the great trouble with the discussion
Of this question has been that gentlemen who
urge continuance Of the issuing functions of
the national baaks measure all their advantages
and virtues by comparison with the rotten old
State banks. | say that 1t is unfair no man on
this side of the House. that have heard OF. at
least, is III favor OF the old State-banking sys-
tenn. We Only oppose at this time, 40 far as
know, the national banks in the issuing func-
ton. We are not lighting bankers nor their pro-
fession. Tue occupation Of banker is All hon
would wish to be a banker, aud whatever may
say hereafter will not reflect upon the individ-
nal banker, but npoa the system.
Now. Il. consider this question intelligently,
il becomes necessary for Us to ask ourselves
wha; j. in3aey2 | contend. sir, that money il
creature Of law. that 1t can only exist by virtue
Of snea law. and that money has certain specific
purposes. Wil.ch sre 10 facilitate the inter-
change OF commodities and furnish substitute
for barter So that when wish to sell two cows
AMI iny horse, | need not take my cows to
market aud hunt for a man who wants to swap
q horse flr two cows. but need only sell my
cows to tie best advantage, sinSly or together,
no; for horse, but for that which fully repre-.
eents the value Of the cows, and for which can
buy horse. and that which will do this call
money, for money is a creature Of law, created
only ~ medium TO facilitate the interchange
OF commodities. and therefore should not be q
commodity itself. but only q representative Of
the saiuo Of commodities.
Bnt to do this 1t must have ono essential
function or attribute, which can only be inn
parted to it by the highest power known to
man. namely, the sovereign power OF the ma
ton: ami that is the function OF legal tender
for tue payment Of all debts.
AMI this does not conflict with the rights Of
th. states to control contracts between indi-
siiuals. as suggested bg my colleague from
Missouri. Mr.. Bnckner, for . legal tender, OF
the power of legal tender, is simply this j:
When Jaln owes money to Jake, and john
MATES lin Il tender of that whlcn the Govern
iaent has sail is legal tender. and Jake re-
fuses 10 take 1t, then Jake cannot 70 into the
courts established by tho authority OF law and
say that the state must bold Jake or put its
hand into lis pocket, or levy upon his goods
and take from lin that which will pay the debt
III kna
Ent If agree to barter, trade or swap one
commodity fur another then the Interchange
must - III kind Q. g., If ! agree to furnish
labor for POTATOES, when have performed my
lahor the Lseal Tender act viii not prevent the
man who Is 10 pay me from making me q tender
III the potatoes agreed upon. The Legal-Tender
Act hss nothing to do with it. 1t is only when
l agree to do certain thing or sell . certain
commodity for money. that then must carry
ont that contract In good faith, SO that when
tint money Which the Government has estab-
isheu III lis sovereign capacity is rendered,
then mus, either accept that money or that
tender will &c good plea in bar. That il the
whole sum and substance Of legal tender and
liz effect.
Gtn'lslnen tell US that We must have money
which viii pass current in England and the rest
oi tho world. | ask any man to tell me or
SHOW me II he has ever seen the money of the
world whether he has ever seen or ever heard
OF money which will pass current and il
tender anywhere except within the jurisdiction
81 the sovereign that has issued il, be no
prince, po;sn,ate or 50.00O.0O0 Of freemen.
There i no money Of the world. Whenever
you 20 within the border OF England or any
Other nation, yon settle your balances, not with
money. even though it be your legal.teuder
eagles or gold and silver dollars. They Will
not count them. They weigh them. They but
take the faith OF the Government from the
stamp on II AZ to its iineness, and in that way
thtS VIII receive 1t, not rs money but a. com.
modify. merchandise. bullion.
Gold ID not money: neither ia money gold !;
money IS only that which ia created bv law.
whether gold, silver, nickel. brass, copper, iron
or PAPER. Gentlemen have q great deal 10 ssy
ahont fiat money. Now ask you in all SINGER
ity, and want gentlemen to answer the qnes-
ton II tho. can, did YOU ever see dollar OF
money that was not fiat money? pause for
reply; and challenge Won to show me a dollar
~ money tina, IL not hat money. l care not
whether II Is made Of gold or silver or copper
Or paper. Why. sir, you may take your suhsid-
larry coin, and how much OF that has intrinsic
value. and how much is fat Take the Bland
dollar, which is worth in the market twenty
cents moro than the trade dollar One is a
lesal.tender dollar, while the other has
q superabundance of commodity but no
legal tender, and yet is worth twenty cents
less. Take Your copper and nickel coin. It
does not contain near the commodity value OF
gold or silver, and yet to the extent that il Is
legal tender it will buy as much IA any other
money, and always serves the purpose contem-
plated within the jurisdiction OF the Govern
meni that utters It. What are bank billsg Are
they money! No. Take the act that has
created them, take the bin itself and read II.
and You will lind that they are promises TO pay
money. and not money at all. When gentlemen
talk about Continental money, French dssignats,
and Confederate scrip ~ rcpndiated and WORTH
less money, they talk OF that which never 81
isted. There never was Continental paper