Iron County register. [volume] (Ironton, Iron County, Mo.) 1867-1965, 1894-05-31
Juvenile Inquiry.


treasury reserve entirely plain. Jen.
ME, hand me that box of gun wads.
You see, there are three colors here
yellow, white and green. There are
a good many white and green ones,
but not SO many yellow ones. Now.
supposing that l have to pay yellow
wad every time either white Or green
wad is presented to me, let us see wha,
will happen. I will make bankers o1
each of you, with whom people deposit
their money, or from whom they bor-
row what they wish to use, when they
can give good security that they will
pay it back. will give each of you a
good many of these green checks, some
white ones, and a few yellow ones, to
represent your money. Now, this is
the money that people haye left with
you for safe-keeping, and some lit is
your own. Naturally, you won't want
it to lie idle; you will want to invest
where it will be safest, and where it
can be collected without cost, and
where there will be no trouble about
payment of the interest. The govern
ment is usually the creditor that meets
these requirements, so that if you loan
your money to the government you
feel that it is safe. Now, I will be the
government, and you little folks run
out for half an hour and see if you
can't devise a scheme by which you
can compel me to borrow your money
and pay you interest upon it,"
After the half hour had expired the
children returned. Papa" said Jen-
ME. "didn't you say you would have
to pay yellow check for each one of
these green and white ones?''
IL did"
''But must you pay yellow ones,
whether you want to or not?"
Il must"
"Then, papa, please give me yellow
checks for all my green and white
ones.''
~ want all mine paid in yellow
ones, too," said Bert.
'.But hold on!" said Mr.. Wilmer, Il
havn't enough to pay you all, Bert.
without ~, npipr chOrt -
"All right, papa" said Jennie, ''I'll
loan you some yellow ones if you will
pay me interest on them
"All right, Jennie; will make you
my note, which, as am the govern
ment, is called bond, and pay you
4! per cent. interest for five years."
81 want my green and white ones
turned into yellow ones," said Frank.
"All right; here they are," said his
father"
81 want mine redeemed" said cous-
in Dick.
"But l havn't any more," said Mr..
Wilmer.
"We1l loan you," said Frank and
Bert, ''if you will pay US interest like
you did Jennie
"All right" said Mr.. Wilmer.
..But, Uncle" said cousin Dick,
"you now have most of the money
how are we going to get any more?"
''Oh, l am paying it out again, all
the time, to my Congressman and to my
mail contractors, to my sailors, soldiers,
clerks, and for whiskey and wines for
Senators, and in other ways too num-
erous to mention, and they constantly
leave it with you bankers.
Cant wo make you give US more
bonds when we get more money than
we needp" said Frank.
..Of course you can," said his father.
''If the green checks represent paper
money. and the white checks repre-
sent SILVER and the yellow checks rep
resent gold. and the green and white
checks must be redeemed in gold when
presented, the government must keep
in its treasury enough gold to pay them
as they come in. Now. can't you see
how people who have large quantities
of money can make the government
borrow their money and pay them in
terest upon itg"
s.Why," said thoughtful Bert, "they
would do just as Jennie, Frank, Dick
1 did. They would take the paper
money and silver money to the treasu-
ry, demand gold for it, and when the
treasury run short of gold for redeem
ing purposes, loan the gold they had
drawn out back to the government at
fair rate of interest. But, papa, how
does the government get its money, in
the first placep'
..From the people, by means OF tax
es."
80, after all, the people pay the IN
terest on the bonds. don't they, I'm
cle?" said Cousin Dick.