Kansas agitator. [volume] (Garnett, Kan.) 1890-1905, 1895-10-04
DEACON JONES'S SON

TAKES TO STUDYING THE MONEY QUESTION,
AND ASKS HIS FATHER SOME IMPORTANT QUES
TIONS WHICH HIS PA--FULLY UP-TO-DATE
oNTHE SUBJECT-ANSwERS AS FOLLOWS
Boy-Say pa, what effect did the exception
gold dollar?
Fathei-Well, my son, it made great de-
1nand for gold to pay duties on imports and in
terest OIL the public debt which it created. Golt
rose in value to as high as sass.
Boy-What did the government buy gold
with?
Father-Greenbacks, my son.
Boy-Pa did greenbacks depreciate, or did the
gold commodity go up?
Father-The greenback never deprecated
gold simply went up the same as any Other
commodity would have done if the law had
been made payable in silver. If duties had
been made payable in silver, copper, or nickel,
either of them would have went up according
to the law of supply and demand.
Boy-Well, pa, did greenbacks ever pay
duties on importsb And was it ever full legal
tender?
Father-Yes, my son, they were full legal ten
der until mutiated with the exception clause.
Boy-Pa why was such law passed?
Father-Well son, no other reason can be
given than that it would create demand for
for gold, and compel the government to issue
bonds on which interest could be drawn.
Boy-Well, pa, if the government bought the
gold with greenbacks, how did they get the
bonds?
Father-Well, my son, they were allowed to
purchase the bonds with greenbacks.
Boy-Did they have to pay sass in green
backs for one dollar bond?
Father-No, my boy; they were allowed 10
buy them with greenbacks, which they received
at their face value, thereby receiving 285
cents worth of interest-bearing bonds for 100
cents in gold, or profit of 1856 cents, besides
interest on the investment of IoI cents worth
of gold.
Boy-Pa, what did they do with these bonds?
Father-Well, sou, they had passed another
act of legislation called National Banking Act
by which 90 per cent more of medium of cir
culation called bank notes were added to 2S5
cents they got for the gold dollar.
Boy-I don't understand it pa; please explain
it to me; l am getting deeply interested.
Father-Well, my son, as said before, they got
285 cents in greenbacks for 100 cents in gold,
then changed the greenbacks for interest-bear-
ing bonds at the face value. They then took
them to the treasurer, put them on deposit for
20 years, and asked the government to give
them, besides, interest 90 per cent of bank notes,
which circulate as money to start bank with.
And it was done, thus adding another ninety
per cent to the value of the gold dollar, max
ing it (the gold dollar), through the exception
clause and the National Banking Act, bring
them ass cents in interest-bearing bonds and
ESQ cents in interest-bearing bank notes, or
SAL cents on which they could draw interest
for twenty years and longer if they chose to
extend the charter of the bank
Boy-Say, pa, who has to pay this s4I cents
and interest?
Rather-Well, my son, the interest on the
bonds is paid by those who use any imported
goods, as the tariff imposed on the importer
is added to the price of the goods imported,
and the consumer pays it all. The interest
on the bank note is paid by those who are