People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1893-01-27
THE SUB.TREASuRY PLAN.
All Its Premises Are Now Admitted to Be
COrrect-Let Us Push the Plan to Con-
summation.

COrrect-Let Us Push the Plan TO COn-
summation.
The address delivered before the last
annual convention of the American
Bankers association by R. NJ. Widney,
president of the University bank of Los
Angeles, Cal, was remarkable and
noteworthy one, and is worthy of ex-
tended notice. Mr.. Widney is at once
an iconoclast and calamity bowler
He utterly demolishes the claims made
by political fnanciers as to the large
volume of money in circulation, and
proves that there is in the banks of the
nation but from 81. 40 to s. so per
capita with which to inaugurate new
business enterprises and develop the
resources of the country. From this
fact as text, he breaches grave dis
aster and dire calamity unless the
volume of money is speedily and large
ly increased. In few well rounded
and logical sentences he demonstrates
the intrinsic value" and natural
money" theories to be superstitious fall
lacies, and emphasizes the point that
all money is artificial and law-made,
having as its monetary essence the
legal tender. Fiat" of the whole peo-
pie, or government In the following
terse, incisive sentence he encompasses
in a nutshell the gist of the contro-
versy between labor and capital exist
ing in the form of money:
The rate of interest should average less than
the average profit on the industries Of the
country. If the rate of interest averages high
er, then slowly but certainly the industries
will be eaten up by the interest and transferred
TO the money lender. This law of finances
transferred the lands and industries of England
to the capitalist, and will do the same in any
nation. No question but that of time is in
volved in the result II the averaged rate Of in
terest is less than the averaged profit on the
industries Of the people then the producers
will annually increase in wealth as well as the
money lenders, giving prosperity to all
Eighteen months ago, in an article
written for a magazine, | expressed the
same idea, thus: THE net annual in
crease in wealth in the United States
for the last twenty years was just about
four per cent and if the current rate of
interest upon money was four per cent,
the money lenders absorbed the total
net earnings of productive labor, from
the fact that, as the net increase of
wealth represents both the savings of
labor and the earnings of money, there
is nothing left for labor if the rate of
interest upon money is equal to the
total net annual increase in wealth. 1t
follows, therefore, that a rate of two per
cent upon money would make an equal
division of the net results of the ma
TONS toll between the producing fac
tors, labor and capital Hence, the peo-
pies party builded its platform wisely
and well, and in the true interests of
productive and distributive dor, when
it demanded that the peoples collective
credit money shall be loaned to them
seves, as individuals, direct, without the
intervention of banks, at a rate of in
terest not to exceed two per cent"
In the course of his address Mr. Wild
ney vigorously attacked the state bank
idea and showed that currency issued
by them, not being legal tender, simply
formed vast pyramid of credit bills,
or promises to pay" money, such pay
ment resting upon its apex, such apex
being ridiculously small amount of
legal tender money. Mr. Widney closed
as follows:
respectfully suggest that all efforts TO have
| congress delegate this financial power to any
combination Of men or corpora ions is danger
GUS and should meet the never-ending oppo
sitOn of all Americans 1t should remain in
the hands Of the nation for the common good
We may be bankers in our day and reap the
profits OF system partial to us. but our de-
scendants will probably not be bankers, and
they will suffer from the operation of any I'M
Just system. As bankers, let US unfinchingly
oppose everything but the best money and tn
best system that the intelligence of the nine
teenth century can give
But Mr. Widney, unfortunately for
his reputation for consistency, formu-
lated plan. Here it is:
When large volume is required at certain
season, provide that on proper bonds of the
United States or of states, cities or counties
that the national banks can borrow this money
say at or 2 per cent interest to the govern
ment and re-loan it to their customers at a
reasonable profit, during the time the demand
| exists. AS soon as the customers pay 1t into
the banks the banks can return il TO the United
States treasury, there to lie idle until needed
To prevent banks encouraging wild speculation,
based on low interest let the rate Of interest
paid the United States for the money be gagged
on a rising scale, say per cent for the first
SlOO,OOO used by bank, per cent for the next
100000 and so on until the rate reached point
where it ceased to pay to take it out This is
the natural law adopted by banks
1t is proper to state that this money"
referred to is United States legal ten
der notes, or promises to pay gold.
However, waving any discussion of
this feature of the plan, we may safely
affirm:
First-The plan delegates to banking
corporations absolute control of both
the volume of money and the rate of
interest the people must pay for its
use.
Second-The plan simply proposes an
enlargement of the present system of
allowing bankers to draw interest, not
only upon what is due them Int also