The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1895-12-15


millions would require twelve figures,
to-wit, 115,200,0 100000
Mr.. jefferson thought that such
money unit would be impracticable for
common use, and proposed instead to
adopt the dollar as the unit, and that
it's divisions and subdivisions should
be in the decimal ratio. The commit
tee of Congress agreed to Mr.. Jetfer-
sons proposition, and the next year it
was adopted by the Congress as we
now have it,
I he decimal system is so easily un-
derstood. and the computations are
made with such facility, that it is sur
prising it has not become universal.
| The system of England, of pounds,
shillings and pence, is absurdly COM
plicated, and tedious. Any boy can
| learn il, in lesson, but why spend
several minutes in a computation, of
| trifing importance, when the answer
in dollars and cents, is obvious to the
| eve? The French system of francs, and
! five francs, may not be so bad; but 1T
seems absurd when vast sums, like
public debts, are stated in francs, the
| franc being equal to about 10 cents of
our money: and this franc is again di-
| yided into 100 parts, called centuries.
! The exaction of Germany upon France
for the expenses of the late war, was
| five billions OF francs, which is some
thing less than one million of dollars,
and is written,5 200, 000,0 600, frcs.
STRONGLY OPPOSED BANKS.
Mr.. jefferson was not only anti
bank in general but he denied their
right to the peculiar privileges which
the courts give them. He brands their
suspension Of specie payments,as bank
ruptcy. And what else is it? If mer-
chant fails to pay his debts promptly
he becomes a bankrupt If his notes
or drafts go to protest, he rs Il bank
rupt. And so it should be with bank
bills, especially, in view of the pecu-
liar monopoly privileges conferred
upon the banks. In letter to Doctor
Thos. Cooper. of September 10, 1914,
he writes:
The crisis. then, Of the abuses of
banking is arrived. The banks have
pronounced their own sentence of
death. Between Two and three hun
dred millions of their promissory notes
are in the hands of the people, for solid
produce and property sold, and they
formally declares they will not pay
them This is an act of bankruptcy,
Of course, and viii be so pronounced
by any court before which il shall be
brought. But cui bono? The law can
only uncover their insolycncy, by open
ing 10 its suitors their empty vaults"
But Mr.. jefferson was mistaken The
courts legalized the refusal, or inabili-
tn of the banks to pay for their notes,
and this has been the practice ever
since. in like cases. Give them an inch.
and they take an ell. Give them the
exemption from responsibility for
their debts. except to a very limited
portion of their means. and they forth
with demand the right to refuse pay
ment. until 1t suits their convenience.
Mr.. Jefferson, in the same letter says:
From the establishment of the Uni
| ted States Bank. to this day, ] have
preached against this system, but have
| been sensible no cure could be hoped
but in the catastrophe now happening.
| The remedy was to let banks drop
graduation at the expiration of their
charters, and for the State govern
ments to relinqrish the power of es-
| tabIishing others. This would not, as
it should not have given the power of
establishing them to Congress. But
Congress could then have issued Treas
ury notes payable within fixed per-
iod and founded on specific tax, the
| proceeds of which, as they came in,
should be exchangeable for the notes
of that particular issue only"
! quoted a week or two ago a similar
expression of Mr.. Jefferson's invinci-
| BILE repugnance to all banks: and of
10 IA
| linquish the right to authorize State
or local banks to issue their bills as
money. What he then proposed is sub
| stantially that which now exists, but
which the National Banks are trying
| to break up-a paper currency issued
| by the United States Government. re-
deemable at the pleasure of the hold
ers. and receivable for public dues A.
gain he says:
Their paper was received on be-
lief that it was cash on demand. Them
selves have declared it was nothing.
and such scenes are now to take place
as viii open the eyes Of creddulity and
even insanity itself 10 the dangers of a
paper medium abandoned 10 the dis
erection Of aprice and of swindlers. 1t
is impossible not to deplore our past
foIlies and their present consequences,
but let them at least be warnings a
gainst like follies in future. The
banks have discontinued themselves.
We are now without any medium;
and necessity, as we'll as patriotism
and conference.-the make US all eager to
receive treasury notes.if founded on
specific taxes. Congress may now
borrow of the public, and without in
terest, all the money they may want,
to the amount of a competent circuIa-
ton, by merely issuing their own pro-
missory notes, OF proper denomina-
tons for the larger purposes of circu-
lation, but not for the small Leave
that door open for the entrance of
metallic money"
These views of Mr.. Jefferson are
applicable to the present times
What he wrote eighty-one years ago,
and what he predicted, has come to
pass; and the evils of persisting in
the tolerance of bank currency has,
as he foretold, overwhelmed the pub
lie credit no less than four times since
that day. No man can pretend TO be
a Jeffersonian Democrat who is an mp
holder Of banks; and To be a Democrat
in name, and not Jefferson Democrat,
is like the play of Hamlet. with the
part Of Hamlet left out
BENJAMIN FRANKLIN'S STORY.
As these financial statements must
be regarded as rather heavy reading
by many of your readers, ! viii con-
clude this letter with one of DIR.