Barbour County index. [volume] (Medicine Lodge, Kan.) 1880-current, 1892-03-23
KEM'S FINANCIAL BILL.

n BRIEF Exposition Of the Provisions ana
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 1t 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 financial system I'M
der which the present unjust condi-
tions can never recur. The bill no
doubt has imperfections. especially In
its details; but its 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. 1t is the
duty of the government to provide an
adequate volume of money for the use
of the people. 1t should create this
money, put it in circulation and keep
1t in circulation. 1t should prevent
money monopoly. 1t should furnish a
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 a
few years. With government banks
this will be impossible
Section provides that all money
heretofore or hereafter issued" in
Guiding silver and gold certificates,
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 a very important
provision not found In any of the plans
of national reform proposed by the alli-
ance. There are now outstanding S346,-
600, 900 of green backs with 500, 600, 900
coin in the treasury for their redemp-
ton. Yet the credit of the country
makes them good. But behind every
dollar of gold or silver certificates there
Is gold or silver dollar. BY the pro-
vision of section Q these certificates are
made legal tender and placed on an ex-
act equality with the greenbacks
Hence they can stand on similar basis.
Therefore the bill provides that little
over two-thirds of the gold and silver
coin that Is stored fer their redemption
shall be taken out and put into circula-
ton. InsteSGU several reserve funds
held for various purposes, a single re-
sergs fund is created containing in all
$3.50, 600, 0OO~ This is to be held for the
redemption OF all paper money out
standing.
Section 10 provides for the Issue of
$500, 200, 900 of new treasury notes.
Sections IL aud IL also provide that
not more than half the coin in the re-
serve fund shall be gold, and section
13 provides that the government may
redeem in either silver or gold at its
option. Thus silver is made a great
bulwark against any effort to drain the
treasury by presenting paper money
for redemption.
Section IS provides that the silver
bullion which has been purchased and
stored in the treasury under the present
law shall be coined and put into circu-
lation.
Section IA provides that all the money
IN the United States treasury, except
the $3.50, 900, OOO held in the single re-
serve fund, shall be placed in a perma-
nent loan fund to be lsaned to the peo-
pie through the medium of the banks
The amount of money now in the treas
ury Is about as follows;
Gold coin and bars .S279. 700
Silver coin and bars, NORTHUMBERLAND. 4l7,000 900
Other money OeSS the net caSn Dal-
ance for current expenses). ......... 1900 900
Total ........................... T23,OOO, 900
Subtracted for single reserve fund. $50. 900
We have remaining .................. S73, 900 900
New treasury notes TO be issued 800, 900 600
Making total increase Of. 67s, 900 900
Thus we see that the amount of ad.
ditional currency provided by the bill
IL about So73, OOc, 0O0 The figures used
in this calculation are taken from the
treasurer's statement of December /,
1891.
Section 10 provides against any con-
traction of the paper currency by pro-
vidinR for the resistance of all that
may be redeemed
Section II provides that all the mon.
ey In the permanent loan fund shall be
distributed among the banks as capital
for loans to the people, on q basis OF
population and business needs This i:
one of the most important features oil
the bill. It will prevent the con centra
ton of money where it is not needed
and the scarcity of money where it i
needed. The money will be distribu
ted in harmony with the laws Of suppl,
and demand
The number of banks provided for 4
the bill will DO about 5000 This gov
eminent capital will give an average o
e294, 900 for each bank. The bill pre-
vides that not more than $500, 900 no
less than $40, 900 shall be placed in an
bank.
The perfect security which the credi
of the government will give will a
tract depositors of all classes. Me
who have large sums of money to loa
will prefer to place their money in tn
government banks at three per Gen
rather than run all risks of maxim
loans outside at higher rates. TIL
would in q short time double -
amount of capital for loans TIL.