The great West. [volume] (St. Paul, Minn.) 1889-18??, 1890-06-06
ORIGINAL Issue Of Money.

(Red Wing) that we do not feel like
writing an extended article on the
subject this week. Taking the sim
pie proposition which the Sun now
advances, and admitting it, leaves
the field entirely as presented by us
it seems, at least to the GREAT
WEST.
The Sun says:
Suppose we need money. Pro-
vided a good endorser, we take our
note into the First National bank
and ask for the sum needed. The
cashier will ask, ''What do you want
it in?" "Have you any of your own
notes that have never been issued %
we ask. He says he has, and we
take clean new national bank notes
that have never been used as money
before.
Now if any man can suffer from
taking bank notes instead of gold,
we shall suffer. Will the GREAT WEST
kindly tell us wherein we shall be
worse off for having done SO? Do
not repeat that the money is issued
as loan, bearing interest, and
wherever it goes and into whOsever
hands it comes, as long as it remains
out of the bank, somebody is paying
interest on it; it is drawing interest.
Do not repeat that, because that is
what YOU affirm and we deny.
What difference will it make to us
whether we took bank notes or gold ?
If it make none, then gold is interest
bearing or else bank bills are not. To
prove that the money we take, what
ever it be, is not interest bearing we
cite what the GREAT WEST will not
deny, that if welose the money, the in
terest will have to be paid by us, not
by the finder, or robber of the money
But if the bank lose the note, the in
terestwill not have to be paid at ALL
In fact the continued existence of the
money is not necessary to the con-
tinuance and the necessity of pay
ment of the interest. What does
the GREAT WEST say to this?
We admit the statement in all that
it implies. If the bank loans gold the
gold bears interest just the same as
the bank-paper. But the issue OF the
paper is the creation of money by it's
original issue-and in it's creation it
also creates a debt, protected by
lien and interest. If issued by the
government the paper money does
not create a debt-protected by
either interest or lien. 1t pays debt
and releases lien. The permission to
create the paper money is not a pur-
chased permission. Government does
have to buy bullion to make it into
coin. The national banker does not
have to purchase it's printed paper.
The paper is a "note. of-hand" in a
sense, whether issued by government
or bank-gold is not. Government
does decide to use notes-Of-hand for
exchange. In one case it issues di-
rect, and no interest or lien follows,
and the Sun admits that by issue
through bank it does bear interest,
etc. AS to gold borrowed at a bank
or paid out by government the re-
lation is precisely the same. But
gold is not issued to supply more
currency than precious metals af-
ford. And yet, gold, Just the same
as with paper currency, if the gov
eminent coins and issues it, it bears
no interest but quenches a debt on
original issue. If, however, the gov
eminent gives to the bank the sole
right to issue gold coins Ito coin all
gold) then gold would be in precisely
the same condition as national
bank currency-never would go to
the people except by always
bear interest and support lien
creating debt. The government
does not do so now-and there's the
difference.
But there are two bills before con-
gress now, one for silver, one for
gold, to let the bank hold the gold
(store it, hoard it) and deposit GER
tificates of it's possession the same as
bonds now. Then the government
permits the bank to issue paper
money thereon.
Gold and silver locked up-and all
paper money issued only on loans,
to the creation of a debt-the bear
ing OF interest-the forcing OF liens.
AS to money lost: If government
issues are lost they (the people, are
the gamer as some individual is the
loser.
No interest is paid to any living
person on the lost money. No mort
gage can be foreciosed on the lost