Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-05-31
JOINT DEBATE.
CONTINUED from First Page

Iney are not money. lncy dre Simply LIIc
promises of the government to pay dollars
when presented at the treasury in the man
ner required by law. They are of course
invested with the functions of money. They
have
THE DEBT-PAYING CAPACITY
of gold and silver Why do these notes
circulate at par with gold and silverl Be-
cause the holder knows he can get the coin
for them on demand, or pay his debts with
them. He knows that in addition 10 the
solvency of the government, reinforced
every day by the receipt of more than
million of dollars of revenue, that there are
stored away in the vaults of treasury $780,
0OJ,GO0 in gold held as sacred redemption
fund with which to redeem these notes as
presented for exchange. If one hundred
millions IN coin will float three hundred and
fOrty-six millions Of legal tenders at par
with gold. as they have done since the lst
day OF January, 1879, and as Secretary
Foster said the other day, without single
demand for redemption, or rather Tor eX-
change in gold, it is not perceived why
$500, 100000
IN GOLD AND SILVER
might not support and float al par $1,000
100000 of legal tender notes with like re-
suits OF course, estimating the capacity
OF the government to prevent depreciation
and maintain each character of the money
that NAV constitute the volume OF circula-
tion at parity in value, We must keep IN
view that the daily receipts OF revenue, and
The authority Of congress to mold It's hand
upon the financial pulse Of the nation
al all times and adjust the volume TO the
needs Of business. Does any sane man, I'M
biased by self-interest and freed from the
praiudices cultivated by Wall street, sup
pose that with 500, O00.O00 in coin stored
axI7 in the vaults of the treasury TO De
held rs "
4 REDEMPTION FUND,
or Pat Hp1s yG1, exchange. witt annual OUTPUT
of more than $lO0GOOO0O from the mlnts
annually free coina~e) with current daily
receipts mainly in coin of more than Sl,OCO.-
600. and with debt paying capacity invested
in these notes that the government would
ever go 10 protest on one of them or be at
al embarrassed in maintaining them at par
with gold and silver The strange anomaly
may be seen any day at the treasury OF the
United States of Sl0000O,00O III gold
banked IN the corner of the vault ruSted
with non-use, their silence and solitude I'M
disturbed for twelve years. That tpile of
god has supported and floated at par
$4,000 600 legal tenders since the LIST day
of January. 1919. N par with gold and sill
yer IN all the marks of the world. In
ANOTHER CORNER OF THE VAULT
there lies S1GS. 600 600 in gold, whose Office is
10 represent that many gold certificates.
only out in circulation, while in another
corner S3l2. goo Of silver dollars repre-
sent similar amount of silver certificates.
Yet the people are clamoring for more
money, and suggesting al manner OF de-
vices, from sUb-treasury schemes down to
wildcat real estate banks, to get the money
out Of the treasury. How can an additional
supply of money reach the channels of cir
culatiOn2 Fortunately for the people the
Government is not compelled to establish
pawn shops. or warehouses, or real estate
or other banks, in order TO get sufficient
amount of money into circulation. The in
Jelligence of the trainers of the constiCu-
lion ought not to be impeached by the con-
ceSsion that in order to supply the
CHANNELS or CIRCULATION
with sufficient volume of circulation that
the government must extend bank char
ter 10 certain fortunate citizens who may
own lands, and place in their hands its
notes to be loaned ut profit to the poor
and dcbtridden, or that 1t was necessary to
loan the notes with or without interest 10
those who might chance 10 own certain
agricultural products, There IS plain,
open way, wholly free from favoritism or
paterualism by which congress may supply
The channels of circulation with all the
money needed by the people.
WHY not reduce taxation and leave more
money in the pockets of the people, make
deficits in appropriations and cover them
Oy an issue of legal tender notes
FROM TIME TO TINE,
and when by this means the volume OF cir
,'ulati0n shall be sufficiently reinforced. re-
adjust taxation and appropriations upon a
proper basis. ] take it that those Of US who
are complaining that there is not money
enough supplied by the government with
which to conduct the business of the coun-
try, would be satisfied If the government
would perform its duty in this regard. If
taxation was reduced and unjust restraints
upon the markets for agricultural products
relaxed, if the volume Of money was made
TO bo 4 of
,he value OF properly and The products Of
labor liberalized and enhanced, we would
NOT NEED TO BORROW
money from the government or from those
who might own stock in real estate banks,
prosperity would soon abound. The Demo
cratic policy ContemplaJcS of course the
withdrawal of bank notes from circulation.
The party opposed this feature of the sys-
ZEN " hen it was established, and has main
tanned its opposition 10 1t ever since. In
1882, when a Republican congress (F'orty-
seventy had under consideration the bill
10 extend the system, the Democrats strug-
gled to defeat it: failing in that we sought
10 take away the power of the banks 10
contract the volume of circulation; the bill
became = law over our opposition. The
course pursued by the banks since 1875 has
JUSTIFIED THE. OPPOSITION
made to that feature of the system by the
Democrats IN the house Of representatives.
/ told YOU the Democrats in the house had
secured the passage of law that placed
81. 600 coo silver dollars in circulation each
month since 1875 amounting up TO date to
S4l2, 600. We were endeaVoring TO en-
-arge the volume of money. But the banks,
which had in circulation 800, 900 in
bank notes during the same period, con-
rracted the volume of their circulation
S534 OOO.GOO by surrenderiug their circula-
lion aud withdrawing their bonds from III:
treasury We have only Sl66,0Q00OO of
bank-note currency in circulation to-day,
whereas in 1878 they had $500 900, 600 and
IN 1852 SD. 000, 600 ! endeavored then by
the offer of an amendment to limit the
POWER OF CONTRACTION
but il was defeated along with all other
amendments So you will see that as the
Democrats poured in silver at one end the
banks Withdrew their notes at the other
end thus making il impossible for US TO re-
inforce the volume of circulation in any
great degree happily, as l think, for the
country. the Democratic party, the peoples
party. Whatever that may prove to be,
and the banks themselves are agreed that
this feature of the national banking system
ought 10 be withdrawn, and the power or
minority to issue notes ought TO be for
hidden by law Banking upon 20 per cent
of bonds which command high premium
in the market with ) per cent held in re-
serve and per ceat taxation has
CEASED TO BE PROFITABLE.
and there is scarcely bank in the United
states employing more than & minimum
amount of notes required by law, hence