Phillipsburg herald. [volume] (Phillipsburg, Kan.) 1882-1905, 1893-09-28
A National Bankers Views.


First National bank Of Corslcana,
Tex, gives utterance to the following
on the financial question:
l am somewhat loath to give MY
views on the currency question at the
present time, because OF the fact that
upon all questions that are generally
debated at this time, men will take
sides on general principles, and after
they have once argued the matter,
and declared themselves on one side
or the other, then the arguments of
those holding different opinion will
have no weight.
No amount Of reasoning will con-
vince an eastern monometallist that
he is wrong, and | presume the same
may be said of the bimetalllst OF the
west and south. So far rs the pres
ent scarcity of a circulating medium
10 concerned, | have not heard of
remedy proposed by any one in au-
thority that would give Immediate re-
lief, and immediate relief is what ia
needed, A scarcity of currency will
surely affect the price of every bale
of cotton marketed in the next six
months and cause great hardship and
loss to all interests in this country,
especially those who have debts that
must be paid,
l believe thut the quickest and best
way to stop this currency famine and
restore confidence, would be for con-
gross, in addition to allowing national
banks to issue currency to the full
value of the bonds deposited, to au-
thorize and direct the secretary of
the treasury to buy in say, two hum
dred millions of United States bonds,
and pay for them in greenbacks. In
Eating the currency, you say? Well,
yes, it would; but surely there can be-
no harm in initiating a currency that
is so scarce that it is commanding a
premium over bank credits. This
government could, | believe, float a
billion dollars in greenbacks If need
ed, and keep them at par with gold
and silver 80 long as they are legal
tender for the payment OF all debts,
dues and demands, and they should
be nothing less. Fiat money, you
say? Well, yes it is fiat money; but
so is oil money, be it gold, silver or
paper, and as greenback is the prom
ise to pay by 65,OO0,000 people in Il
country teeming with everything that
u man needs for his comfort or his
pleasure, to the extent that 1t is need
ed by the people to carry on their
business, it IS better money than
either gold or silver.
l contend that all money is fiat
money. Gold is fiat money backed
up by the fiat Of the government that
stamps it. Silver is the same. Take
away the fiat of the government that
has stamped the coins in circulation
in the world, and your so called in
trinsic value would disappear, and
gold and silver be worth little more
than copper or brass. If all gold and
silver in the world were destroyed,
other means Of settling balances
would be substituted in very short
time, and the world would move Oh
as usual, none the worse for want of
it. The natural substitute would be
paper issued under proper reGula-
lions and redeemable in the goods
and labor of the people using it,
Money at best is but token that the
civilized people of the world agree
they will take in settlement of balan-
ces
Buying and selling is only trading
at last, and money the token given by
the debtor in trade to his creditor,
which he agrees to redeem in some
future trade. The creditor in the
first trade transfers his token to his
creditor in the second trade and SO
on. A hundred dollars might settle
the balances where millions were
bought or sold or traded. 1t seems
strange to me that many Of our news
papers, even in the west and south,
will keep on from day to day harping
on the fiat money, the 65-cent dollar,
etc, and | wonder if they are really
deceived themselves, or merely trying
to deceive others.
There Is no such thing as dishon.
est dollar, unless it be counterfeit
The government stamp on gold, sill
yer or paper, makes such commodity
dollar, an honest dollar, there can
be no other sort; 65.000,000 have
pledged their honor and their prop
erty for its redemption, and each and
every one of them are morally and
legally bound to take it in payment
for their labor or their goods. The
man who would call such dollar a
dishonest one is, l fear, himself be-
yond redemption. Has any one ever
heard Frenohman, an Engllshman,
a German, man from any nation on
earth except the United States, talk
OF the silver coined by his govern
ment at ratio of 151 to /, being dis
honest money? Never. Business is
paralyzed to-day because we have not
enough circulating medium.
Who ever heard of panic when a
full legal tender circulating medium
was plentiful? 1t is contraction that
causes panics. Loss of confidence
you sayl Well, yes, it is loss Of con.