The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-10-28
Senator PETERS Plan.

UNITED STATES SENATE, !
WASHINGTON, D. G. March 16.
Replying to your request under date Of the
9Th instant in relation to the supplying the place
Of national bank CIRCULATION, have to say that
In my own Judgment the best substitute is what
the people of Kansas favored fourteen years
ago, namely, United States notes, commonly
called greenbacks; for, as you know, national
bank notes are redeemable in United States
notes. think It would be well TO abolish the
whole system Of bank note issues No banking
institution should be permitted to issue any
thing which is to be used as legal tender money
unless the issue is supported by the power and
the credit OF the government, and the material
used, whatever it may be, should not be redeem.
able in anything. It ought to go out to the peo-
pie as money, full-fedged, ready for duty, with.
out any, weight or impeachment or conditions
OF any sort, whatever What we use as money
should be absolutely free from all conditions,
so that there could be no s'runs' on banks
in time OF stringency and no panics be-
cause debtors are unable to obtain
legal tender money I believe that the
, time has come to nationalize our money. We
took one long step in that direction when We
adopted our national banking system. We taxed
state bank notes out Of existence, subs tituted .
national currency for purely local currency;
and it was only a short time after embaFking in
this new enterprise until we discovered that the
bankers OF the country were masters OF the
financial situation We find that instead Of
serving the people they served themselves. In
1882 there were $685. 900 900 OF bank note circula
tion. Since that time about S24O 600 600 OF It hal
been retired. not because the people did moi
need the money, but because the banks realized
profit from the sale OF their bonds at pre-
mium-the bonds that they had deposited as
security for circulation. Our experience and
that of other nations has been that banking
corporations are private schemes for profit to
individual persons, and our observation has
taught us that there is only one safe way to
avoid the dangers to which that sort Of financial
management subject us; that is for the nation
itself to prepare its own money every dollar Of
it: issue it to the people directly through
government agencies, wholly without the use
and Intervention Of banking corporations OF
other private agencies
You understand from the foregoing that
would not only substitute United States notes,
or treasury notes, il you choose, for national
bank notes as they are being retired, but
would substitute that sort OF money for all
bank issues: and would do even more than
that; would not make money out Of a promise
to pay; that is to say, would not write out
promise to pay money and call that promise
money; but would use piece of paper Just as
are now using piece Of gold or a piece Of sill.
yer, and make that money, providing in the law
what its functions shall be- That puts the in
fluence, the credit and the power Of all the
people behind the money Then we will have
gold and silver and paper at par one with the
other; and that, II we will reduce rates Of inter
est down to the level Of profit on labor SO that
men can make as mucA money farming OF
blacksmithing or carpentering as they can by
lending money, will give us q safe currency, q
sound financial system, and no more money
panics. Yours truly. w. A. PETER.