Fort Worth gazette. [volume] (Fort Worth, Tex.) 1891-1898, 1891-06-22

about Sl25 O0o. 900 The total existing ma
tonai bank stock is about $3.50, O00, 600. II,
therefore, these banks were required to
issue notes to the full amount of their
paid-up stock, as would be done under my
idea, the bank note circulation would be
the latter sum instead of the former one.
How would the banks be able to get the
gold or silver, The answer is, that they
would be only required to deposit small
per cent per month and this sum would
return to the channels Of trade under the
bond-purchase system, before the next de-
posit would be made. In fact, only small
portion of these deposits would be made
into the treasury and channels of trade
under system Of exchange. Has the gov
eminent enough gold or silver to pay all
the bondsf Answer: Such as are payable
in coin would be paid monthly and deposits
would be made to make the next purchase
before it would be needed for that pur-
pose. There has occurred to the writer
one obstacle and it consists In the fact that
these issues after the bonds are all paid
might in the course of few years grow
so large, by the increase of the demand for
banks, that it might put the government
credit on strain to carry it. This oblec-
ton is partially met by the past expert
ence of the government in reference to
greenback issue. This experience has
shown us that with $100, OO0, 900 of gold
issue to redeem about $3.50, 900, 600 of green
back, that there is not an average of more
than $50 per annum demanded by
the holders Of the greenbacks, so
that to a large extent this scheme
will find its continued practicability in the
confidence Of the stability of the govern
ment itself.
Added to this plan, 1 would, Of course.
coin all the gold and silver free which our
mines should be found to produce. At the
same time, would reduce the tariff to
strictly revenue basis, and l would so
change and repeal the present laws, by
which / would reduce the expenses OF the
government to a basis which would come
strictly under the head of an economical
administration of the government" By
this means, 1 believe that at least two hun
dred millions of money could be kept in Cir
culation, and in the pockets Of the people,
which sum, added to the national bank in
crease hereinbefore suggested, would at
once put US entirely out of the possibility of
financial distress, and the country settle
down to a conservative business basis. By
this means, the great masses of the people
would be benefited. 1t could no longer be
said this was rich mans government and
a poor mans curse. There would be no
more bonds; the banks would be doing bust
ness on their own money. 1t is true, the gov
eminent would indorSe the notes issued, but
there would be no double interest; and, be-
sides, the government, which is at last the
people. would have gold or silver dollar
deposited for every note issued. Nothing
paternal in this, but simply solvent con-
Germ, indorsing her own banks after being
Unidentified against loss. This plan adopted,
and there will be no requirement for fiat
money, even if it could be tolerated. This is
no lending of money for any purpose by the
government, nor. to anybody, but simply
sound, business use of our own, in our own
solid and substantial way circulating notes
based on the coin of the government. This,
like my friend Gibbs, contribute as my
part to the people for discussion. You can
take it or not. While l am not welded to it,
l am inclined to think there is something in
it. Your obedient servant,
A J. BAKER,
of Tom Green.