The Louisiana populist., 1894-11-30
GIVE US GOVERNMENT BANKS.

GIVE US GOVERNMENT BANKS.
: The Bankers Argue from Sound Premises,
but Arrive at an Unsound Conclusion.
! In an article in the financial depart
J ment of great New York weekly un-
der the heading, Points in the Cur
rency Problem" we noticed last week
| financial teaching which we wish to
call public attention The first point
mado by the writer. a gold-bug, was
that there is need of an elastic cur
rency; that the people recognize this
need and it must be met somehow by
congress and the bankers, or the de-
mand for more money and an elastic
! currency will voice itself politically.
To head OFT the political demand for
! more money free silver and green
backs) and to provide an elastic vol
ume of currency he argues that the
! banks must be given power to expand
! the currency to move crops AM when
/ ever there is need of more money.
The argument of this financial writer
Ia banker. and speaking for the bank
ers) is the argument of the popu!ists
who call for either the sub-treasury
currency system or, better, system of
/ government banks But, mark you,
there is this difference, viz, the pri-
vate bankers want conferred on them
the power to make the currency elastic,
, TO issue at almost no cost to themselves
bank note currency TO loan and collect
| interest on; whereas the populists de-
mand that the government shall not
delegate its sovereign power To issue
money. currency, but shall issue as
much money as the people need to bor-
row, upon good security, at cost of do
, ing the business. Why give away to
the present money monopolists the
power to print paper and loan it at
high rates of interest to move crops
and pay for work and so provide cap
ital, when the government alone has
the right to create money, and what
ever service it can render the people
belongs to the people by right, and
should not be taken from them and
given to gold or gold and silver mo-
nopolists?
This fnancier rightly argues that sill
yer coinage at Washington would not
provide the needed elasticity. the free
and sufficient expansion of the cur
rency needed, ''in farming states at
harvest time, for example" So he
would give to the banks in the rural
districts power to issue bank notes and
collect interest on their own debts, on
bank paper notes that would cost them
not to exceed cent a hundred, a
scheme to force the people to pay them
from ten to thirty-six per cent. on the
face of paper that cost them only one
per cent. of it's face-which would be
n profit of 1000 to 5000 per cent. on
the cost of such capital.
If the paper currency can be fur
nished the banks at one per cent, it can
be furnished direct to the borrowers
certainly at labor cost of not to ex-
ceed two per cent. And if the currency
needs to be made elastic, as the bank
ers and populists agree, let us have it
made elastic not by wildcat bank is
sues, but by means of warehoused Sc
curities and manufactured necessities
through government banks conducted
by servants of the people, working for
a reasonable salary, as plenty of capa-
BILE, well qualified men will be willing
to work and furnish bonds besides.
A new banking system must soon be
provided to take the place of the pres
ent system based on United States
bonds Let it be, then, government
banks and banking providing currency
at cost, such as our party proposes.
With government banks, belonging to
the people, issuing on ample security
: legal tender currency at cost, the usury
...%- I.
! the money SO lost will remain in the
hands of the wealth-producing class
and furnish them the means to buy
back as much wealth out of the mar
ket as their labor pours into it, so es-
tablishing the necessary equilibrium
between supply and demand.
And, take notice, this equilibrium is
what is necessary to prevent the peri
odic market gluts, commercial stagna-
| ton, contraction of credits and the en-
! forced idleness and distress of destitute
millions. Government banks in each
I county conducted by the elected and
bonded financial representatives of the
people, providing upon ample security
currency at cost for the needs of each
locality, would, with supplementary
/ land legislation, restore justice, har-
mony and lasting prosperity to the in
dustrial and commercial world.-Lin-
coin (Neb.) Wealth Makers.
Il is said there is an anti.lote for
every poisoa, a remedy ior every
disease, and - man for every emer
gency. Tlir anti,lmie for the POI
sou of monopoly which has been
instilled into tlre veins of our gov
ernmen, is the Peoples party. The
men fOr the present emergencies
are such men rs Judge Lyman
Trimbull and SrnatO. Jones, Of
Nevada, who, rising above party
'.lctatiOn, come b"llly out on the
side nf the peOple.-Tie Sentinel.