National Republican. (Washington City (D.C.)) 1872-1888, 1886-01-12
THO Money of tic Pooplc.

.
Tie Money of the People.
Senator Leland Stanford, Of California,
who is a business man in very comprehen-
siye sense Of the term, IN q recent conver-
sation on the general subject of national
finance, spoke of silver money as the peo-
pies money, and fpaper as the bankers
money.
Briefly illustrating the thought, he said
that, by the labor of the people, silver was
gotten out of the earth, and labor was eX-
pended on it at every stage of the various
processes to which It was subjected between
mine and mint; and that, when coined and
stamped, It circulated mainly among the
people-among those whose financial affairs
were not so extensive as to require bank ac-
counts.
On the other hand, paper money-7espe-
cially the national bank notcs-was OBJ
tanned by bankers with bonds. 1t was the
bankers money. IN contradistinction from
silver, hecarisc It was made for banks, issued
by banks, based on bonds, represented little
expenditure of labor, and did not, like
silver coins, find its chief avenues Of circu-
lation among the people.
IT is significant fact, and one that must
command the attention of the business
world, that such man as the senator from
California, one who has built more miles of
railroad than were ever built by any other
man, and who is now the head of the most
extensive railroad system on the globe,
should thus declare himself for the people,
an advocate of the money Of the people as
against the money Of the bankers.
The national banks, which are based on
the public debt, can exist only as banks of
discount, deposit, and exchange after the
debt is paid. There Is a strong and whole
some public sentiment in favor OF national
supervision Of banking institutions. The
people generally are opposed to return to
state banks. They desire uniformity Of
laws regulating banking, and they prefer
that, whatever kind of paper currency may
he used, II shall be equally good in all
parts of the country. They feel a greater
degree Of confidence in depositing their
money in banks of the United States than
in those chartered by and managed under
local laws. For these reasons there Is IN
earnest wish to continue the national bank
ing system as permanency after the can
collation. of our bonds shall have eliminated
from that system the power and right tc
issue notes. There is a disposition on tht
part of business men and the people gen
eially TO treat the banks with such liberalit.
az will induce them to accept the inevitable
chai re, adapt themselves to new conditions
and continue to serve their useful purpose
in the future MS they have in the past.
BY the retirement of their notes consG
qu,nt on the calling of bonds the total o
national bank circulation has been reduced
from nearly 1868, ,000000 TO about S3l4,000,
tCO. This is secured by S305,0O0,000 II
Lends, bearing an average rate of interes
Of 3.8T, besides large amount of green
backs deposited by banks that are in pro
cess OF sunenderlng their circulation Il
whole or IN part Something over $40, 900,
GO Is the annual interest paid on the bond
row held in the treasury Ms security TO
the lank circulation. The government
gets hack IN the shape Of taxes about So
CCO,0CO, leaving $IOOO,OOO as the ne
amount paid TO the banks ON their securit
bonds.
Asstatcd above, the public debt is in pre-
cess Of extinction, and public continent vii
insist ON Its disappearance utterly at III
distant day. This country does not esteem
debt as a blessing, but regards It as pru
dent farmer would a mortgage on his Ian
AN incumBrance to be removed at tn
earliest practicable period,
The problem of national finance to /
solved is, how to wipe out the debt aud NJ
do away with national banking We pr
rose that coin certificates shall take IL
llace Of national bank notes; that coin,
the peoples monoy-shall bemade the bas
Of national banking, As we arc no
paying $IOOOOOO year over and abo'
receipts in the shape of taxes
Keep up the bank note circulation, v
could afford TO pay something to induC
bankers to accept the change and make the
Institutions simply banks of discount, d
post, and exchange. The goycmmei
could buy their bonds with coin, keep Il
coin on deposit, and issue certificates in d
nominations calculated to meet all Il
wants Of trade.
If approached on both sides with dcte
mination to do that which will be best f
all interests, there ought to be no serio'