The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-01-09

FINANCIAL PLAYS IN CONGRESS.
4 JeFersORian Substitute Is Proposed
for All of Them.


for All of Them.
To the Editor:
An amusing feature of the ''fin de steele
finance at Washington comes to US in the
reports of the hearings given to the bank
ers before the committee on banking and
currency. Secretary Carlisle favored one
plan, Mr.. Eckels another Horace White
desires the plan of the Baltimore bankers,
modified Several other leading New York
bankers presented various and conflicting
proposals In general each banker diff
fered from the other and that which was
pronounced desirable by some was de-
nounced as ruinous by others. J. H. Walk
er differs from all who spoke, and has re-
ceived the approval of large numbers of
bankers. st. John, president of the Com
mercal Bank. of New York, appeared and
dsapproved of all the plans as worthless
to the public, and favors free coinage of
silver at Is to 1. The president of the
Chemical Bank acknowledged that the
loaning of bank credit was better bust
ness than farming by testifying that their
stock had risen from 500 per share to
1890 per share.
The bankers are divided as to any new
system The Democrats are divided The
Republicans are divided 1t seems bank
ers are as much at sea on finance as any
class, and much more than some. They
are agreed on their purpose to retain the
special privilege of issuing money in the
hands of private. corporations to the end
that usury may eat up the producer
In the midst of this Babel the only unit
ed voice comes from the two millions of
Populsts, who voted on Nov G. 1894 for
the doctrine of Jefferson, who, writing to
Mr.. Eppes, Sept. II, 1913, said: Bank pa
per must be suppressed, and the circulat ting
medium restored to the nation to whom it
belongs"
1t is now proposed to allow banks to is
sue currency upon securities other than
national bonds. viz: upon their own paid
up and unimpaired capital, which may be
invested they fit above so per cent,
to be in legal tenders.
If money may be issued upon securities
held by banks themselves of kind to be
determined by themselves. Why not dis
pense with the bank of issue, and do the
far safer thing-that is, permit any state
city, or county, which has never defaulted
upon its bonds, to deposit the same directly
with the treasurer of the United States
and have the same converted directly for
the deposition, into legal tender notes at
charge of one per cent, only per annum
under an agreement to repay the same to
the treasury in equal annual installments
in 80 years. This immediately gives us
safe, sound currency, issued on the best
OF security, redeemable by cancellation as
fast as repaid, and removes all occasion
for any coin reserve. New securities be
ing constantly deposited insure continuous
new isuses to replace that which is being
redeemed by repayment and cancellation
BY this means the volume is kept up to the
level of the requirements of the industries
of the country, anil is responsive to the
laws of supply and demand. If the vol
une of currency put in circulation by the
deposit of such securities does not prove
sufficient to bring the rate of interest down
| to the point desired upon loans by private
persons, congress may provide for the de-
| post Of additional. safe securities to be
converted into legal tender upon the same
| terms above mentioned
=, The object to be sought NOW is not only
| the issue of safe currency, but the abro-
| cation of usury to the utmost extent
! possible. This object cannot be attained
| under any system which leaves banks of
| issue in existence. 1t can only be accom-
| plished by the plan OF transferring the
| functions of banks of issue directly to the
| treasury OF all special privileges the
most absurd and destructive is to give con-
| troll of money to banks of issue Self in
| terest induces every such bank to con-
| tract currency, to the end that debts NAV
| be multiplied and usury Increased For
| this reason Jefferson said: Il sincerely
believe with you, that banks are more
dangerous than standing armies" This
referred Of course to banks of issue. Rem
| ton said: "Al1 property Is at their mercy"
| The fathers of Democracy were all of like
| opinion, and all experience has proven their
+ opinion correct. There can be no settle
| ment of the financial question until hanks
of issue are wholly abolished, and the avs
tenn favored by Franklin and Jefferson
| adopted. THOMAS v. GATOR
Go ES,ou