The representative. [volume] (St. Paul, Minn.) 1893-1901, 1894-08-08
NERTIRLE PAPER MONEY.
England. France and america Have
Each Proved 1t Superior to Coined

Metal.
II there is any one thing more than an
other for which financial reformers in the
Peoples Party are sneered at and misrep-
resented, it is for their advocacy of a non
redeemable legal tender money, that is
money on its face, receivable for all debts.
The daily press of the country has nothing
but SCOTS and jeers for the idea, the object
being to deceive the people and do the bid
ding of gold-bugdom. But in the great
ocean of journalistic deceit and claptrap
there may sometimes be found drifting a
bit of truth confirming the wisdom of the
so-called cranks and financial visionaries
Here is something of the kind that a few
Gays ago got into the Pittsburg Dispatch
IN answer to a correspondent:
1T has been said that the French paid
tne penalty imposed upon them by the
Franco-German war out of their peasants
stockings. 1t is matter of record that
when the legal tender act (Cours-Force)
was forced through the French parliament
ana law was made permitting the Bank
or France to issue bank notes to the
amount of $3.50, zoe 0O0 the people invested
IN the loan at rate that surprised the en-
tire world. The metallic reserve in the
Bank of France was 1929 900 OOO the bank
note circulation $251 ,000 900 in JULY 1870
This did not include the banks deposits.
Inc circulation was increased on the 10th
of August, 1870, to $500, 600 COO and the sne
Gle reserve fell to $500, 600 000 At the end of
october, 1873 the circulation increased to
S6l4WO,o0o. When it was proposed in 1871
10 make the paper money, money on its
face-non-redeemable- most acrimoni-
Gus debate ever waged over financial meas
ures embroiled the entire French parlia-
ment. All sorts of trouble was predicted
Nobody could see how the issue of $780, OOO-
VO0 additional notes on a metallic reserve
of $l2OCO0,OO0 (ths being the proportion of
reserve the new notes were based on) could
IN any way assist France in paying one
thousand millions OF gold to Germany. But
tnere were men in power who resolved to
pursue what they confessed were heroic
measures-they had to raise the money
ana measure that the ablest financiers in
the world predicted would paralyze France
was pushed through, and then the notes of
the Bank of France. instead of depreciat-
Ing, appreciated. Gold was at premium Of
212 per cent. The value of the bank notes
increased until the premium practically dis
appeared. This page of financial history
has puzzled financiers from that day to
this. If the fiat people were familiar with
the various phases of this transaction
doubtless they not only would extract much
comfort from it. but in all probability they
would employ it as a club to convert con-
servatves to their peculiar views"
The flat people" have been familiar with
the facts here set FORTH and in it's main out
line the foregoing is produced in speeches
by Congressman John Davis and others
and also appears in the literature of the
reform party. The French '.pushed
through measure that the liable finan-
ciers considered suicidal and paid a thou
SAND millions to Germany, while the height
or American craftsmanship is reached by
Issuing fifty millions in bonds for the same
aple fnanclarS' to draw interest on Amt
We Smart!-Comng Nation.