The great West. [volume] (St. Paul, Minn.) 1889-18??, 1892-01-22

the democratic law of the democratic
state of Missouri. is not paternalistic in
its nature and effects, would the fact
that the state stood ready, with state
bank, to loan money upon the bonded
warehouse receipts, render the whole
system obnoxious to the charge OF
tpaternalism?' And if yes. why so?
And if no. why may not the whole pee
pie, as government, loan money upon
the absolute security of state bonded
warehouse receipts. George C. Ward,
in Topeka (Kan.) Advocate.
Since preparing the foregoing matter
for the Advocate, there has come under
my notice an item which proves con-
clusively that the plutocrats do not OBJ
ject so much to paternalism ''or the
paternalistic" features of the peoples
demands, but simply object to any
measure which gives to the people at
large any benefits flowing from the
paternal care of their (the people's)
government. From the American
Banker clip as follows:
Senate bill, No. 5s1, introduced by Mr. His
cock, of New York, (by request presents some
novel features, which, however, are scarcely
likely to meet with general favor. This provides
for the issuing of national bank circulation on
the following classes of security:
l. United States bonds as at present, except
hat the par value of these is to be tie limit of
issue instead of 80 per cent.
2. State railway and municipal bonds, to the
extent of 80 per cent of their value.
3. First mortgage loans on real estate at not
over 80 per cent. of its assessed value, when
guaranteed by corporations with not less than
100000 cash capital.
4. Certificates of deposit of gold or silver
coin and bullion in the treasury or mint of the
United States.
5. Storage warrants and warehouse receipts
of pig IRON cotton and wheat in the custody of
responsible corporations with at least $3.50 900
paid up cash capital, the merchandise stored
Except pig iron) being duly insured in good
companies in favor of the bank depOSiting
same the warrants and receipts being availa-
BILE as security for circulation only when in the
hands of a national bank.
The limit of circulation on the three last
named classes to be the coin value of the gold
and silver deposited, IS per cent of face value Of
the mortgage loans, and IS per cent. of the
market value Of the pig iron, cotton and wheat
warrants or receipts
1t is true that the bill was introduced by the
senator by request, but this feature of it savors
strongly of ''Sub-treasury'' scheme, except
that it would operate through the national banks.
When senator from the great state of New
York introduces such a bill as this, while his
| colleague openly advocates free silver coinage,
| surely ''the world do move
The other notable features of the bill are the
provisions for converting this circulation into
two per cent. ffty-year government bonds and
reconverting these into circulation in sums OF
not less than 5000, making the notes legal
| tender for all private and public debts and for
r. 0fo
protection Of depositors first by appropriation
by the general government and the release OF
this fluid by the gradual accumulation of fund
produced through an annual tax of one-tenth OF
| one per cent. on deposits in the national banks.
1t will be noticed that while the
above bill contains an admission that
bonds secured by real estate mortgages
are safe and desirable basis for an
issue of money. the provisions of such
bill in relation to such issue are virtual
ly identical with the much written of
| Argentine land cedulas," to which
the plutocracy has persistently and de-
risively compared the land-loan plan of
the alliance demands. Section 5, with
its provisional details, is actually moth
ing more or less than the much abused
Sub-treasury plan, with it's benefits
carefully limited to the bankers to the
exclusion of the people.
The ''other notable features OF the
bill' referred to are identical with nv
proposed interconvertible postal saw
ings bank deposit certificates, except
that the interest is put at two instead
Of one per cent, while the minimum
limit of conversion being put at $1,000,
the benefits of such interconvertible
feature are carefully and with devilish
cunning withheld from the people and
restricted to the bankers, thus continu-
ing in the hands of the banks the con-
troll of the volume of currency in circu-
lation
1t would be intensely interesting to
know just at whose request" Mr.
Hiscock introduced this bill, as enough
is therein conceded, as to the justice,
soundness and feasibility of the peo-
pies monetary demands, to give to the
people a glorious victory in fight
waged upon the foregoing platform.
GENDnJC n