The Newberry herald and news. (Newberry, S.C.) 1884-1903, 1892-02-17
NEW SYSTEM OF FINANCE.
The State Debt to be Paid-No More Taxa
tion and Money at per Cent.
100000 for Education-A
Beautiful Theory.

Beautiful Theory.
TO tie Editor OF The Herald and
News: Call them by what name you
please, there are only two parties in this
country. We have Democrats, Repub,
licans, Reform Democrats, Mugwumps
Alliance Democrats, Alliance Republi'
cans, Labor Unions, Knights of Labor
PEOPLES Party and a host of other names
but in the last analysis there are only two
real divisions-the oppressed and the op-
pressors-the people on one side and the
owners of metallic money on the other
side. The former are striving to better
their condition. The latter are doing al
they can to reduce the people to serfdom
and slavery. This is the real contest
The names by which they are called only
serve to confuse matters and pave the
way for the unworthy to attain Office and
power.
Matters are serious and are growing
worse each day. Let US, one and all
come together, regardless of names, and
take counsel and do all We can to lift the
deadly depression that is settling down
upon us, and advance the good and hap
piness of mankind. First, what is the
cause of this deadly depression that is set
ting down upon the country, and Is para.
iyzine every business? 1t is not confined
to the United States. It is in every ma
ton on the earth. 1t is not local, but
general. What is the cause and what is
the remedy? During the last thirty years
railroads, steamships, the opening of the
Suez canal, the electromagnetic telegraph
that belts all nations and makes them, as
it were, one family, and the wonderful
improvement in tools and machinery OF
every kind have revolutionized and mar
velously changed the worlds methods OF
production and distribution, while the
financial systems have remained station
ary, sometimes taking step backward.
This, in the opinion of the writer, is the
real cause of the depression. An instance
of the change in production and distribu-
ton is, the labor of one man in the North
west produces $500 bushels of wheat, and
the labor of two men delivers it in any
seaport of England or France. This holds
good in every department of labor. Not
withstanding this, we have the money
Abraham used thousands Of years ago.
The remedyis, the financial systems should
be revolutionized and changed, and
moved up abreast with the demands OF
the times. 1t is contended under the lead
of England, the most powerful govern
ment since the days of the Roman En-
pire, that gold and silver alone are money,
and gold alone is the standard of pay
ments, that all others are only promises
to pay gold or silver. Such are the sys-
TENS of finance in all civilized govern
ments the world over.
The report OF the director of the mint,
July 1st, 1891, shows that the total
amount of gold and silver coin and bullion
in the United States on that day was
sl,l6S, ,S60,392. The deposits of money in
State Banks, Loan and Trust Companies,
Savings Banks and private Banks
amounted to S2,661, ,752,96l. The deposits
in National Banks as reported by the
comptroller OF the currency October lst
1890, was Sl,564,S45,275. Total deposits
in the banks, S4,226 659S, ,236.
To meet these vast deposits there is IN
in the country, OF gold and silver coin and
bullion, only 81, ,768,S60,392. The figures
show there is on deposit nearly four times
as much money as there is gold and silver
to meet it. If there was simultaneous
run on the banks by the depositors, every
one would have to close its doors regard
less of its assets; hence the system is de-
fective and wrong.
}. E. Cairnes. professor in the Univer,
sity College of London, in his work writ
ten in 1874 on Political Economy, says
Government paper money has always
enriched a nation when properly issued
restricted and secured. 1t has ever been
a success. Specie for domestic currency
or as basis for paper has been failure
without a solitary exception"
In verifcation of the above assertion
the Northern people, during the late war
grew enormousl- rich on government
paper money. Since the War the country
has returned to metallic money and paper
based on specie. The result is we have
had, in round numbers, 100000 business
firms to fail, with liabilities of S4,0Q0,0OO
and the failures are on the increase.
There were 405 failures in one week the
middle of January last past, against 33l
for the same period in 1891, 324 in lo9O
331 in 1889 and 259 in 1883. We are on
the down grade under the present fnan
cial system.
Aristotle, the most erudite man of an,
tiquity, speaking of money, said: 1.-The
origin of money is not natural but con-
ventional and arbitrary" Such it has
been in all ages, and such it will be to the
end Of time.
Money is not property, it is only the
representation of property. It is Gre
alton of law, while property is creation
of labor. It is simply an instrument foE
the easy transfer of titles to property
from one person to another. 1t should
have the least intrinsic value, and be IN
ample volume for the transaction of bust
ness. 1t is oil upon the spindles OF cl7lll-
cation which could not have had begin
ming without it, and if it is not in sufh-
cient volume and properly used, ,Tiliza-
ton must languish and die. This truth
the history of man demonstrates. For
lack of it we are now in fearful condl-
ton and still going down.
Our financial system before the late
war was State banks. It was displaced
by the present National banking system
which is a great improvement. although
it is amonstrous monopoly. The attempt
to return to State banks of issue would
be a step backward and is impossible, ii
legally tested. The constitution of the
United States, Art. I, Sec. 10, says, "No
State shall" "coin money; emit bill OF
credit" &c. A State cannot delegate a
power she cannot exercise, hence State
banks of issue are unconstitutional.
National banks deposit government
bonds with the comptroller of the cur
rency and take out circulation. The
United States government emits the bills
through these banks and is responsible
for them; hence they are constitutional
Although National banks are monopolles
we shall not make war upon them except
to devise, if we can, a better system, one
that will displace them as improved ma
chinery displaces the old Before pro-
ceeding to outline a financial system
which the writer believes will prove
vastly superior to the one We have, he
will say, while the enactment of the free
coinage silver bill now before Congress is
bo oxictirD tho