Los Angeles herald., 1891-09-19
LETTER BAG

OuuSe RAuhey proposed money SYSTEM
EDITOR HERALD: In your issue of
September 14th is an analysis of my
proposed financial scheme, by DR.. H. P.
PEBBLES.
The legal and financial effect of my
proposed plan is vastly different from
what he seems to regard it.
Commenting on his comments in their
order, he says: GA new bureau shall
be established" This is not the case.
The present bureau of currency is used.
(See section AZ of the proposed act.)
He says the comptroller of finances will
be the financial autocrat, and the money
king of the age. The law, from 1854 to
the present, is identical with my pro-
posed section, and no such results as he
describes have been apparent, and none.
such can occur, as any one will see who
properly reads and understands the pro-
posed act.
His criticisms on the banking system
will not hold. No bank in my plan is a
bank of issue, and no bank can control
the issue under my system. The United
States is the sole source of issue, and
banks only aid in the circulation.
Should banks attempt to control the
circulation, then this system provides
that any citizens wanting money, who
have real estate, or state, county or city
bonds, can start their own bank
and get money OF the government. The
existence of this power in the citizen
will force all banks to loan at as. low a
rate of interest as can be done. | fix no
rate of interest to be charged by banks.
Congress can do so if desired. The system
proposed by me will keep interest at its
lowest mark.
All these banks must pay the people
(the United States) interest on all
money obtained from the government.
See section %.
So his criticism that the banks are a
middlemen, and the people must pay
them interest and not pay the people
interest, is not correct. OF course all
borrowed money must pay interest. Ii
borrowed of the banks they get interest
on their money. But they pay the
people interest on money obtained from
the government. My system does not de-
stroy the money lending class. 1t de-
stroys no class. We have no right to
destroy any class.
The vice OF most systems is that they
attempt to cinch some classes for the
benefit OF others. This is wrong from
foundation to top. My system places
the money as public benefit,
to be equitably handled ior the COM
mon good.
The banks in my system are
only one of the methods to keep
money in proper circulation; it is not
limited to them, and they or any other
combination are powerless to curtai it.
See section Z. Where the money goes
direct from the government for state.
county and city bonds at per cent, all
OF this is loan to the people at per
cent. on their real and personal prop
erty, and is wider and safer loan than
any sub-treasury plan, and is as direct
and beneficial as if loaned TO each man
personally. 1t cuts down the rate of
taxation about 4 per cent. on allinterest
bearing bonds. And it does not require
an army of sub-treasury agents to run
it. This puts in circulation millions of
dollars. Study section z. Again, Sec
tions s, 8, 10, IL and II provide how
banks can aid in the circulation to the
extent that they and their customers
may desire.
Again, section "a provides a further
system to complete the circulation
among the laboring classes for labor,
among property owners for material,
among citizens for all kinds OF work and |
material. If any man will study the |
section, referred to he will find opened |
up system that is as much broader
than the criticisms of the doctor as can
we'll be desired. The proposed consti-
tutional amendment and act OF congress
are to be considered together.
| am not advocating any scheme as
perfection, and will gladly cooperate in
any better plan if it can be suggested. |
But l am opposed to the present botched
system, and also to any patches'on it.
Give us full, ample, sound, safely
guarded system, founded on justice and |
equity to all. r. M. WIDNEY.