The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-03-18
kEM'S FINANCIAL BILL,

Brief Exposition of the Provisions and
Advantages of Mr.. kem's Banking and
Loan Bill.
Mr.. Kem's government banking bill
is the first systematic plan of financial
reform proposed by a representative of
the peoples party for enactment into
general law. The plan is comprehen-
sive, yet it is simple. It comprises the
best features of the principal plans
heretofore proposed, but it is not open
to the objections raised against them.
In addition it includes many important
features not included in any of the
plans heretofore proposed. The re-
form proposed is not temporary, Or
partial, but permanent and far-reach-
ing in its effects The plan involves
nothing that is wild or visionary. On
the other hand it is perfectly sound
and eminently practical. It involves
nothing that has even the appearance
of class legislation. 1t accords perfect
ly with the fundamental principle of
the alliance: Equal justice to all,
special privileges to none" 1t provides
not merely for temporary relief to the
people. but for a financial system I'M
der which the present unjust condi-
lions can never recur. The bill nc
doubt has imperfections, especially in
its details; but it's general features and
purposes are wise, just and statesman
like.
The following is a brief outline of
its provisions:
The first eight sections provide sim
pie yet complete machinery for a sys-
tenn Of government banking. It is the
duty Of the government to provide an
adequate volume of money for the use
of the people. It should create this
money, put it in circulation and keep
it in circulation. 1t should prevent
money monopoly: 1t should furnish
place of safe deposit for the peoples
earnings. Those ends can be accom-
plished in no other way except by gov
eminent ownership of banks. An in
creased volume of currency would GER
tainly relieve the present hard times,
but if the financial machinery of the
country remained in the present hands,
the same conditions would recur in
few years. With government banks
this will be impossible.
Section provides that all money
heretofore or hereafter issued" in
Guiding silver and gold certificates,
shall be full legal tender. This places
all kinds of money on an exact equality
and renders the depreciation of any
kind of paper money impossible.
Section 10 provides for the free and
unlimited coinage of gold and silver
This does away with the gold basis and
gives a large annual increase of metal
money.
Section IL embraces very important
provision not found in any of the plans
of national reform proposed by the ALI
ance. There are now outstanding $780,
600, 900 of greenbacks with 500, 900. 900
coin in the treasury for their redemp-
ton. Yet the credit of the country
makes them good. But behind everv
dollar of gold or silver certificates there
is a gold or silver dollar. By the pro-
vision of section these certificates are
made legal tender and placed on an ex-
act equality with the greenbacks.
Hence they can stand on a similar basis.
Therefore the bill provides that a little
over two-thirds of the gold and silver
coin that is stored for their redemption
shall be taken out and put into circula-
ton. Instead of several reserve funds
held for various purposes, single re-
serve fund is created containing in all
$3.50, 600, 900. This is to be held for the
redemption Of all paper money out
standing.