Evening star. [volume] (Washington, D.C.) 1854-1972, 1893-10-19
A MON ETARY COMMISSION
Proposed by Mr. Poote to Provide g System
of Banks Of Issue.
Paper Read Before BaAkers' Conven.
don-Expansion Of Currency In
stead of Contraction.

Ci4llol III SH&G8So, paper was READ py ME-.
Allen R. Foote Of this city on "a plea for q
sound currency and banking system" Mr..
Foote has made an exhaustive study of the
financial question. He argued for a monetary
commission Of non-partisan delegates from
every state. who should devise a plan for an
uniform system Of local banks of issue. In
the course of his remarks Mr.. Foote said:
"A question that was held In allegiance
during the CONFLICT for American political
Independence, and the conflict for the fnteg-
rtty of the republic, has now reached ma
turity and stands In the pathway OF our
progress and prosperity demanding settle
ment 1t In the question Of the formulation
and adoption Of a sound American currency
and banking system This question Is as
far-reaching In its consequences. as preg-
nant with good or evil for the welfare OF the
people. was any question that has been
solved By our predecessors In the conflict
now taking form the forces Of good and
evil are being narshalled under two stand
ards of value; the dollar OF gold represent
ing a gold dollars worth of honest labor,
and the dollar of arbitrary power represent
ing the FIAT Of government. The one is
founded on the sound economic principle
of seif-heip. the other is founded on the eco
nomic fallacy of state socialism Self-help
Is founded on diligence, energy and skill
employed In the labor Of production. and on
savings. profits and increments massed and
employed as capital In furnishing the tools
and supplying materials for production
There Ii but one honest way IN which a
1aborer can prosper. and that Is by produc-
ing more than he consumes and owning the
difference. By no possibility can his margin
for saving be honestly increased by the IN
reference Of the state. II the state increas-
es the margin for saving for any man 1t can
be accomplished only by arbitrarily trans
ferring portion Of the savings OF some
other man to him. Such action violates the
requirements OF honesty and cannot be ap-
proved by those who are honest and inteili-
gent Repugnant as the teachings OF state
socialism are to the spirit and the purposes
of the republic much has been done under
cover Of the authority Of national legisla-
ton to give them practical effect. Such leg
isiAtion I. evidence that the people. though
honest-minded. have not been rightly in
formed by their political teachers
Fiat Currency.
Whenever monetary legislation becomes
destructive of the prosperity OF a people. it
is evident that such legislation does not &C
cord with the requirements of natural
economic laws. Acts of Congress or of
state legislatures may make a monetary
system legal, but II II be IN conflict with the
requirements Of natural economic laws,
the time must inevitably come when nat
over man-made laws and will exact PEN
atty for the economic crime committed.
From the payment of such a penalty, no
plea of ignorance. no proof of good inten-
tons, no exhibit of honest labor can save.
A vivid Illustration Of this truth is found in
the attempt to establish the use Of a fiat
currency. through large monthly purchase
of silver bullion and the issue Of silver GER
tiicates In payment for the same. which,
together with our large stock of ove--valued
silver coin. Is redeemable in gold. So long
rs these certificate issues and this coin are
not redeemable IN the commodity for the
% long as the commodity bought cannot be
sold to obtain the gold with which to re-
deem the promise made. the entire issue of
silver certificates and silver coin Is fat cur
rency. Intelligent men know that the gov
eminent, vast as its resources may be. can
not continue the policy Of issuing fiat cur
rency redeemable In gold indefinitely. They
know that as a final result OF such a policy
the day must come when the government
cannot redeem its fat currency in gold They
know that when that day comes the ques-
ton will be forced upon the people Of max
ing choice between stopping all purchases
Of silver In order to maintain gold stand
ard of values. o. making silver certificates
and silver coin redeemable In silver only,
and. as logical result, the adoption OF the
free coinage Of silver and Of a silver stand
ard of values. The doubt to the outcome
Of this question has destroyed confidence,
credit. commerce and industry. The loss 50
caused IL enormously greater than the
entire value of all the silver bullion ever
produced in the United States. This loss
falls on all classes Of the people. Today.
the laborer pleads In vain for employment
on full time at his former high rate of
wages; In vain the farmer. the planter and
the manufacturer seek a market for their
products at former high prices: In vain
merchants and investors plead with you,
the bankers of this country. to accept their
securities for discounts at former high quo
tatiors; In vain you watch for the inflow of
"A
enable you to make the discounts demanded
fo- the healthful exchanges of commerce
There has been q wide departure from the
fundamental requirements Of sound cur
rency. and the penalty exacted with merci-
less fmpartiality from laborers. farmers,
planters. manufacturers, merchants, inves-
tors ana bankers. Is the cost of the error.
From such an assessment, made by the
logic of events, no plea of Ignorance. no
prcof OF good intentions. no exhibit of hon
est labor. has saved or can save"
MI Foote argued that the most urgent
demand OF the times was the remodeling
Of our currency and banking system. in the
Hight Of recent experience and the teachings
of history.
Should Have Expansion.
Said Mr.. Foote: The present national
currency and banking system was devised
under stress of war necessities when the
people were divided by antagcnistic inter-
ests. clashing in deadly conflict With such
IN OrlSlu IL was inevitable that the system
should fall short of fully responding to the
requirements Of the whole people when
united IN the pursuit Of the vocations of
peace Its fatal source of weakness is in
its diminishing foundation, the national
debt The system contracts instead of ex-
banding in response to the growing needs
Of q prosperous and an increasing people
and thus checks their prosperity and
growth The processes Of contraction on
the one hand and of growth on the other
hand have now reached a limit beyond
which they cannot go without producing
disaster For this reason there is an ur-
gent demand for far-reaching revision
OF currency and banking legislation. Dur
ing the absence OF sound, practical and
uniform system of state banking. that will
maintain every currency dollar issued at
par In gold values. In the hands OF all hold
ers. at all times. and wherever they may
be. the ability of national banks to supply
Q SUFFICIENT amount of a sound and a salts
factory currency. which has been inrneas-
urahly superior to any currency formerly
supplied by state banks when they were IN
unrestricted operation. has been a blessing
OF high value to the people of this country.
In this matter the people have profited nv
their experience with state bank CURRENCY
and have willingly preferred to perpetuate
the national banking system, rather than
to deprive themselves OF the use Of the
universally recognized and sound currency
issued by national banks, that has never