The advocate and Topeka tribune., 1893-07-26
FIAT MONEY,

July %:
The intercOnvertible bond idea suggested
by Peter Cooper and endorsed by Ben But
ler and later by Secretary Window has been
revived in the discussion of substitute for
the Sherman law. The leading banker OF
Iowa, Capt. Albert Head, of Des MOines,
puts it in this way:
think if congress will, in the month OF
August, provide for the issue Of from $500,
100000 TO $500, 900 in currency, convert
ible in per cent. bonds at the will Of the
sOlons of currency, there would be enough
money to handle the immense crop of pro-
duce and stock and enable the people to
meet outstanding obligations.
Yes, sir; gold bonds of the United States
at 2 per cent. would be better than gold and
would not be called for by holders Of cur
renoy. A currency that will command q
gold per cent. bond is better than gold
and would circulate as long, as better than
Der cent. could be realized for the use OF
money. Il would be far better than to issue
and sell them on the market, for the reason
that in that manner it would be merely
taking out of one pocket to put in another,
while if the government issue the currency
direct and make ID convertible into bonds at
option of the holder, the currency would 60
into immediate circulation, and thus relieve
the present striDgenoy and stimulate com
meroial business and enable shippers to
handle produce, and farmers, merchants
and others to pay their debts.
Yes, think the fact that the president
has fixed time for congress to meet will
have beneficial effect, and will restore con-
fidenCe in great measure, In the expect
ancy that wise and conservative legislation
will result.
Iowa has over $9OO,OOO,OOO worth of pro-
ducts matured and maturing for the mar
kets, and l hope when congress meets
ample provision will be made to carry it to
the consumers at q remuneratiVe price to
the producers.
This currency would be based on the
credit of the government in a tangible and
entirely safe way and is the best method
ever devised to give elasticity TO the circula-
tion. It is an easy, safe and complete sOlu-
tion of the "per capita" problem, and ii
paves the way for decision on the silver
question.
The salient points in the above are
fairly conspicuous, and yet it may be
well to note some of them. We
would call attention especially to the
following:
First-Those who have so long in
sisted that legislation has had moth
ing to do with our industrial
depression, and that it could not
change the conditions, are now look
ing to congress for restoration of
prosperity.
Second-While we have been in
slsting that there has been and is a
money famine, the ''tinsnoiers" and
their puppets have labored to show
that there has been a constantly in
cressing per capita, and that the vol
ume was amply sufficient for all the
needs of the country. The famine Is
now admitted, and all the remedies
proposed for our present trouble en-
brace the proposition of an increase
of the currency in one way or
another. The very necessities of the
present situation demonstrate the
correctness of the Populist position
upon the finance question.
Third-It will be observed that
since the necessity for an increase Of
the currency has been forced upon
the people SO that all classes are COM
PEELED to recognize it, the great effort
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