The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-05-29
SPECIOU z5OLDBUG PLEA.
HORRIBLY sHoRR ANSWERED
An Able aper on the Money
Question.

Mr.. Horr says, "the government
does not loan dollar to national
banks"
l will repeat his second ques tion
which he processes to answer:
Why should the government not
lend to the farmer as we'll as to the
national banker? He answers, $50 it
should" Now it follows that if the
government does loan to national
banks it should loan to farmers. Mr..
Horr comedies that lit is fair to put
farmers and bankers upon equal
terms, ,and that the privileges granted
to one class should be enjoyed by the
other.
But let no one be deceived into the
belief that Mr.. Horr favors loaning
money to farmers. He puts quietus
on all demands of that kind, he thinks,
by denying that the government loans
money to national banks. Listen to
some of his statements:
1.-THE government simply furnishes
national banks with blank bills"
Isn't that straining? But we are glad
to be assured that the government
does furnish" something. Score that
before it is denied.
"These bank bills are not money"
he says; "they can not be used as such;
they must first be signed by the Off
GERS of the bank" They are money
then, are they? Money made out of
signatures! What is the money value
OF these mighty signit ures? Allow
for the sacrifice, the terrible physical
exertion and the tremendous bodily
strain required by the 'officers of the
bank' when they sign these blank
bills; what is it worth in the dollars
and cents? Who would not sign his
name, when by so doing he could sud.
denly convert blank bill into money?
After they are signed, he adds, "Then
they become the promissory notes of
the bank" Let us keep in mind the
fact that they are money, even if they
are promissory notes. Mr.. Horr has
said that they are money. II his
tes timony is not competent to use
against him. will submit in evidence
what the law says These notes are
signed by the president and cashier.
In section %, Laws relating to bank
ing" we find this language: 'Such as
sociations are hereby authorized to is
sue and circulate the same as
money"
Then these blank bills become mon
ey, currency; are issued and circulated
as such as soon as John Doe and Rich
ard Roe as cashier and president, sign
them. OF course everybody knows
Doe and Roe It is their confidence
inspiring signatures that makes these
notes good in this country from lend
to end" Uncle Sam "isn't in it,"
Though he furnishes the body of the
bills, their signatures re the bills
themselves. Though he says (Sec 23),
they "shall be received at par in all
parts of the United States in payment
of taxes, excises, public lands and all
other dues to the United States, ex-
cept for duties on imports; and also
for all salaries and other debts and
demands owing by the United States
to individuals, corporations and asso-
Citations within the United States, ex-
cept interest on the public debt and
in redemption of the national curren-
cy." Though he does all this to
boost them along, it is nothing; it is
a mere matter of form. There is
nothing so potent in making them go
as the promise of John Doe and Rich
ard Roe to redeem them!
Let us see what the practical opera
tion OF this scheme is. John Doe and
Richard Roe have started a bank.
They have vault full of fresh sigma
lures alias promissory notes. Peter
Poe presents himself and offers his
notes into circulation. He examines
one of the notes and to his surprise he
reads national currency where he
expects to see nothing but the names
of Roe and Doe. Right there he is so
foolish to reflect that he would rather
have national currency" anyhow
He is told that he cannot have these
blessed promises to exceed 80 days,
and that he must give his note for 10
per cent more than he takes out of
the bank. He reads on the face of a
bank note that the bank will pay to
bearer. He gives note to bearer, the
bank. They both become bearers;
they exchange their promissory notes
and they each agree to redeem. Right
then Poe does make an awful break.
He suggests that inasmuch as he
must pay interest on the banks
promissory notes, he should receive
interest on his; il they must have pay
for their signatures he must have
something for his.
Doe winks at Roe and Roe takes
casual glance at Poe's big, raspy
paws, the hayseed in his hair and the
tallow on his boots and he meditates.
He finally reminds Poe that although
his note was like bank note, in that
1T was a promise to pay, it hadn't that
absorbing, sapping property to enable
1T, like fungus, to spread out, and
draw in and add to itself.
Poe at last decides to leave his note,
his promise to pay, his debt, in ex-
change for their note, their promise
to pay, their debt; he to pay interest
upon his, they to draw interest upon
theirs, and he asks himself ,on leaving
that il this is the best banking system
the "wOrld ever saw" how is it with
the poor victims of the worst one?
Mr.. HOrr says: "The national bank
before it can secure its bills is COM
PEELED to purchase United States
bonds and deposit them in the United
States treasury, 500 of such bonds
for every 500 of blank bills received" /"
Blank bills! The Insignificant
things! How absurd it is to back up
blank bills with bonds, 800 for 80 Of
bla nks! A bank ought to be able to
get car t-load Of blanks for 800 of
bonds! The government can't s'create
monav ~ yrn,1nh 1aaa fat monav. h,,<