The Ocala banner. (Ocala, Marion County, Fla.) 1883-194?, 1891-05-08
Editing Committee.

: But the interests of bankers and of CAPT
;, tailsts generally, were swayed agains
The issues of money by the government
: and they had sufficient influence Il
, MAIN and cripple the policy at its yer,
outset. 1t was their game 10 compel tn,
. government TO fund its outstanding OBJ
? legations in interest bearing bonds, aRC
to make these the basis of bank nott
. issues for their own benefit. 1t wa.
e shrewd foresight in them to conceal from
the PEOPLE as long as they could tht
great fact, that they, the people, through
their government, had the power tc
furnish an ample amour of safe and
sound currency, upon conultion far more
favorable to the interests and industries
of the masses, those engaged in the
} work Of production and not in com.
merciai exchanges.
Tl.e expenditures of the government
: under an economical administration
, ought not II be so much as half billion
annually; and ] think they are not
likely 10 be, until it shall come 10 pass
that government will take control of
the railroads, teleeraphs, express lines,
and other similar branches OF business
| which involve directly the interests of
all. When this shall occur, if it ever
lshall, then it is obvious that the trans
actions Of the government will be vastly
increased Under such a system the
collections and disbursements would be
amply sufficient to sustain much larger
issue OF government notes, probably
lsufficient to supply all the currency re-
! quired by the country. | have already
| intimated how seriously all financial
/ problems would be affected by trans
I ferYipg the ownership of the railroads,
teiegraI,lla etc, to The government for
/ The benefit Of tie people. Five or six
billions OF stocks and bonds, now u IL e
market, would he Virtual extingl1:shed;
and these, instead of being the play
things and stakes of gamblers and spec
uatoTs, absorbing the energies and
means Of numberless idle consumers
and Don-proddcers, would become the
solid foundation ofthe public prosperity,
the property involved becoming the
joint property of all the people, used
vantage ofthe public.
But the government cannot take
private property without making just
compensation. Ii it acquire the rail-
roads and telegraph lines, it must pay
I liGlts MICH tltGti CAiSEICI
and these companies, that now prey
upon the people while serving them,
shall be compelled to resign their occu-
patton into the hands of the people,
they would no doubt be glad to accent
government bonds. perhaps even per
cent bond for their possessions, which
of course, they would estimate at an in
ordinate value. But this would only
.t.s,fsF cra RI o.
other, axd the markets would be IS full
as ever of the subjects of speculation
and gambl!rg, though the fluctuations
would hardly be so great as before. It
is plain, however, that the acquisition of
these vast properties must be gradual,
and conducted in such way as not to
impose intolerable burdens on the PEG
ple under the pretext of benefitting
Them a two per cent bond would
double Itself in fifty years, five billions
you'd become ten billions. But By the
exercise Of proper foresight and the
precautions, the government, within fifty
years might we'll pay Just compensa
lion to the owners OF this property with
out subjectiug itself TO bonded debt.
The gist of the whole scheme is, that
these Immense values shall be extin-
guished as private property, They are
the creation of the people, let them re-
turn as a legacy to the next generation,
without doing any injustice to the pres
en..
As 10 The Issue Of legal tender notes
By the government, there could be
nothing safcH than the advance Of such
notes on the security Of the non perish
able productions of the people, to be re-
turned and repaid within such period as
may be sufficient to enable the parties to
reach the market and supply the con-
sumer. All bankers are well aware that
this is the soundest principles on which
their business can be conducted. Bills
drawr, on shiDmenfs of products with
bills of Isding attached and proper in
surance effected, constitute the solid
foundation for all good operations with
money. In fact these are the only
legitimate objects for which loans ought
usually to be made. that is, to facilitate
the production and distribution of the
annual supplies necessary for the support
and comfort of the community. The
annual production and consumption of
these commodities by the people, are
the only true measure by which the
currency ought to be regulated. What
ever surplus of productions may remain
after supplying the wants of all, is in a
large view, generally applied to The pur-
pose of permanent improvement, build
ing houses, making roads, etc. But the
permanent investments, partakipg of
the nature of real estate, do not properly
come within the scope of circulating
medium, intended to facilitate the active
operations of productive industry.
Otherwise the Accommodations of gener-
alton after generation, would require tax
represented in the currency, and this
would obviously grow far beyond all
reasonable limits.
On these grounds, it seems TO me,
that the government ought not to issue
notes 10 be lent on mortgages of real
estate. The principal objection is, that
there would be no practical limit to the
issue required and no eifectual means of
maintaining the currency at par. Under
the other system, that Of advancing on
the annual productions, there would be
2 practical limit, very satisfactory
measure, ard absolute security. The
government would insure the products
received, ut rate profitable to itself,
and yet advantageous to the borrower
There would be no question of impos.
Ing unnecessary burdens on the citizen;
and whatever profit might accrue to the
government, would eventually enure TO
the citizen by reducing his taxes, and
possibly by relieving him from all
Federal taxation whatever.
Neither gold nor silver, nor both of
them are the measure Of valne in trans
actions. This measure is modified by
the devices of bushes men. bills, notes,
checks, deposits, clearing house trans
actions, etc. These are all under the
control of capitalists, and are made to
serve their ends as occasion may occur
for their skilful manipulation. But if
the government should take this power
out of the hands of capitalists, and Itself
become the banker for the people, there
would be less use for gold or silver.
These commodities are only useful to
settle balances on the one side or the
other in our foreign trade. They will
probably long remain the nominal stand
ard; and there viii be no difficulty in
maintaining our currency at par with
gold, especially when that metal shall be
no longer used for coin, but shall be
kept mainly in bars for settlement of
! foreign balances. Foreign trade, which
ought to be free as possible, is in the last
analysis only an exchange of produc-
tons; and, in the long run, this exchange
must be equal. But temporary balances
occur, and these must be adjusted. The
precious metals are the best. and most
convenient commodities for this pur-
pose, although our recent experience
shows that the true currency for our do
nestle transactions is the legal tender
note of the government, even to replace
/ the dime and the nickel. F. P.S