The midland journal. (Rising Sun, Md.) 1885-1947, 1893-10-27


none too much money in circulation 10
conduct on very nearly cash basis the
volume of business.
If this period of the counry's history is
taken as criterion to hypothecate the
amount of currency which should be kept ID
circulation 10 fully meet the demands Of
business. it is evident that $40 per capita
would be none too much, nor amount to a
dangerous iDhation.
The government was the great money
distributor during the war, and it caused the
return to the Treasury of the $3.50, 000,0 900
greenbacks which were issued by the sale of
bonds of small observation-disclosures small as
$50 and 500. The great producing class,
when they had accumulated a surplus by
the sale of their goods, carried their green
backs to the banks and brokers and ex.
changed them for coupon bond, with
coupons payable every three months. These
bonds were held by farmers and other pro-
ducelss the coupons when due being detach
ed and presented at the banks where they
were freely cashed. By this system the
currency flowed back TO the National
Treasury and was again distributed among
the people in the purchase Of produce,
munitions of war, payment of the army
ETC., etc., while the people freely used their
bonds in payment Of their larger purchases.
In place of charging interest for the use of
the currency, the government paid the
people interest for the use of their money,
while the bonds served them in lieu of
smaller currency. And had it not been for
the exception clause which the bankers
forced into the greenback under threat of
turning their influence against the govern.
ment in the hour Of its greatest peril, they
would have remained at par with gold 10
spite of European and New York gold
gamblers.
There were several denominations of these
bonds, 20's, 10-40's, 3-65's, etc. They
were all freely used by the people as cur
rency in payment of their larger bills. Thus
| the government became the distributor of
money directly among the people, who
never before or since in the nations history
enjoyed such substantial prosperity. But
as soon as the war terminated, shylock got
control Of the Treasury, and the govern
ment ceased to be the main distributor of
money among the people, a systematic
destruction of the money was commenced !;
long time bonds of large denomination were
issued, and the smaller denominations were
speedily wiped out by funding.
Like an easterIy storm, hard times began
gradually to spread its mists among the
people. Cash on the nail steadily decreased
and credit, like poisonous missma, steadily
permeated the laboring and wealth produc-
ing classes, while the non-producng, ex-
| plotting classes continued to fatten as labor
grew lean.
This brings US to the inquiry, how shall
| the government be brought back to, and
installed as the distributor of money directly
to the people? That $50 per capita would
not be sufficient TO transact the business
which steadily expands over an eyer WIDEN
| ing territory and increases in volume, is
conclusively proven by glance at the i'm
mense volume of credit furnished In lieu of
money by the banks, from four to ten
dollars for every dollar of money in circu-
lation. When the Federal government was
a purchaser from lS615 it was a dstribu
tor of money direct to the people. but when
it ceased to be purchaser of their products
to any great extent, its power TO distribute
money among the people without the inter
vention of banks also ceased, and cannot be
restored save through system Of govern
ment banks. Such a system would place
the government in direct tonch with the
people and give it complete control of the
nations finances, and completely supersede
private or corporation banks, and relieve
the people from the incompatible robbery
inflicted by the private banking system,
mis- named national banks.