The herald., 1895-01-03

l
The members OF congress guilty oil
perpetuating or perpetrating such a
fraud on the people Ct this nation should
be and will be historically relegated to
everlasting shame and contempt.
How will the government put this
money in circulation? it cannot give it
away, is a question frequently pro-
pounded by-well, do not know how to
classify such interrogation.
How did the government put in circu-
lstion over $500, 900. 900 Of greenbacks
and treasury notes. and several billions
OF United States bonds? Did it give
them away?
The proposed currency could be put
in circulation by stopping all internal
taxation and using the currency to meet
government expenses, and to carry on
needed government improvements and
protection.
1t can also be put in circulation by
allowing banking corporations to deposit
national. state, county and city interest
bearing bonds, such as are safe and
properly quoted, with the United States
treasury. and thereon receive national
currency for circulation up to say rs per
cent or 80 per cent OF the face value of
the bonds, paying the government a rate
of iRtsrest that would be based on buei.
ness justice, and such as would prevent
speculation in such transactions.
To prevent business initiation, require
every additional loan by given bank to
be at 8 much higher rate of interest, so
that the final rate paid the government
reach higher rate OF interest than that
bank could obtain from its customers.
This would force such banks to call in
loans, or raise the rate OF interest 30
high that men would cease to borrow.
1t would also prevent any one bank
from borrowing indefinitely from the
United States treasury at a low rate, and
reoaning it at high rate.
To illustrate: Suppose a bank deposits
bonds bearing 4 per cent interest with
the treasury. and takes out currency and
pays the government per cent. and res
invests in bonds at 4 per cent, and de.
posits the bonds in the treasury and
takes out currency at ] per cent, and
buys at per cent and repeats the trans
action over and over. 1t results in Civ
ing the bank an annual net profit of 8
per cent on the whole volume o; BUSH
ness so transacted. This involves the
same absurd proposition. in another
form. that has recently been 80 forcibly
! illustrated in the sale of United States
bonds for gold.
With the safeguard OF increased rate
of interest on each subsequent draw of
fixed sun on the United States tress-
ury for currency. the whole banking sys-
tenn, as now adjusted, would take care
OF itself and OF its customers and would
be limited to legitimate banking busi-
ness, cooperative with the interests OF
the people and of the government.
Under this system no bank would be
responsible for the issue. No run could
ever occur on either the banks or the
United States treasury. The deposit
ors' money would not be subject to a
irst mortgage to secure the banks notes.
The entira asgets OF the bank would then
be left to secure deposltors end CONNER
cial creditors
This would give us the safest banking
system possible under the natural law OF
finances.
The current and free gold outside OF
the United States reserve of 5000, 900, 600
permanently locked up in the treasury,
would have no demand put upon it ex-
cspt to meet forei IN payments in the
fsw cases requiring IL, and such cases
would soon reach O minimum and re-
main the e.
Each bank would purchase and hold
such an amount OF gold and silver as it's
business might require. and would cell
} it to customers on such terms az they
( mutually agreed upon.
This currency issued by the people,
! through the government, for the benefit
OF the people would result as follows:
Assume the value of money to be 8
per cent per year. Ii the government
! sells, say s400, 900, 600 bonds at per cent
to get money, the interest amounts to
the principal every "a wears. which is a
dead loss of the $400,000,0O0 every "a
years. II the government issues S400. =
000, 900 of non.interest bearing currency
and places the same in circulation, as
hereinbefore suggested, the use OF the
money for money represents the 8 per
cent interest.
That is, every "a years the govern.
msnt, or rather the 100000 people.
have saved in interest the par value of
the total issue.
So If the government should then re-.
tire the whole issue the nation would be
$500. 900, 900 gamer.
The profit or saving for a century
would be as follows:
"a years. 400, 900, 600
40 years. ....-.''.........-..... 4Oo.OUO,OUO
~ years Observation-Disclosures. 40O,0OO,OOO
So years OBSERVATION-DISCLOSURES. 100000, 900
$1,000. 600, 900
l. TT tha ahovA nat nYofika wara aaau m al