Turner County herald. (Hurley, Dakota [S.D.]) 1883-19??, 1892-07-14
No Government Leans,

".
we have within the past two weeks
received quite q number of letters
which show the old falsehoods, that
the government loans money to distil-
lers and to national banks, and without
interest, are again being circulated by
the alliance organs. The simple fact
is this-thaJ the government loans
money to no one. either with or with
out interest.
First let US explain about distillers.
There is a heavy internal revenue tag
upon every gallen ofwhisky or distilled
liquors manufactured by every distil-
lery. TO see that the tax is paid it is
necessary for government officials to
keep every distillery under close inspec-
ton, SO that every gallon is accounted
for, every distiller is required to fur
nish a warehouse at his own expense.
This is in sole charge of the govern
ment, and every drop of whisky he
makes must go into it. The books of
the distillery are kept upon method
specified by the government, and are
constantly under the inspectors eyes.
Hence it is impossible. it the govern
ment officials are honest, that any of
the product shall escape the tax.
The liquor may stay in the ware
house which is called government"
warehouse because it is in charge of
government officials, although built
and owned by the distiller-three years
before the tax is paid. Whenever any
is taken out for sale, the tax must be
paid; and at the end of three years it
must be paid anyhow. One might sup
pose that the cost of this rigid inspec-
tion by government officials is very
large; but it is now less than per cent
of the tax collected. In all this, there
is no "loaning" of money to the distill-
er, in any way, shape, or form. We
are at loss to know upon what the al
,Iiance bases the senseless charge that
the. government "loans money to dis
tillers without interest
Tbe basis of the false charge that the
government loans money to national
banks without interest seems to be,
that the government prints the nation
al bank notes. A national bank which
wishes to issue notes-many ofthem
issue none-mnst buy on the market
United States bonds, deposit them in
the treasury, and then it may issue 30
per cent of their par value in notes.
Now. the goyernmentprints these notes
simply as a matter of safety, and of
5precaution against counterfelting. The
bank pays it for doing the work. the
same as it would pay an engraving firm
for engraving and printing them.
Suppose there were no such provision
and a bank could get its notes engraved
and and printed wherever it wished.
A bank in Duluth, we will say, gets
$4,000 Of notes manufactured by an
engraving Grm in Chicago. Does any
sane man say that the engraving firm
loans the bank $4,000, without inter-
est. because Of thisy We think not.
Then why assume that the government
does, when it prints the notes, is paid
for it, and sends them to the bank !?
Bank notes are not money; they are
promises to pay money.
People in the east find it hard to lln-
derstand why people in the west appear
to believe such abominable rubbish. 1t
would seem that our common schools
are failing in their mission if they do
not teach children that Il promise to
pay money is not money, and that the
government is not a money-lender in
any shape or form, Toledo Blade.