The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1895-01-03
Ep1roR RRYAN on BANKs.
The Statesman Journalist Discusses
the Money Institution.

the Money lubtituttous
Shall we consider the banker entirely
disinterested in demanding the right to
issue paper money! 1t should not be
forgotten that the Baltimore plan origin
ated at bankers convention and that
the people who are pressing its adoption
are bankers-as unselfish, let us say, as
people generally, but no more SO.
The great excuse given for delegating
TO banks this power to issue money il
that gold is withdrawn from the treasury
by the presentation of greenbacks and
Sherman notes. And because gold can
be drained out on government papers we
are told that 1.-THE government must go
out of the banking business" The issu-
ing of money is not part of the bank
ing business, it is function of govern
ment, an attribute of sovereignty. If the
banks will go out of the governing busi-
ness our finances will be in better shape.
But the administration plan does not re-
lieve the treasury of the danger of a gold
drain. Banks are only required to de-
posit 80 per cent of the desired circula-
ton in greenbacks and Sherman notes,
and since we are supposed to have near
ly So, 600 900, 900 of these outstanding it
would require a net addition to the cur.
rency of over 81 l,OOO,0O0OOO in bank
notes to absorb all the paper which calls
for coin. What would Senator PETER
think of such wild and reckless inlla-
ton of the currency? And yet this
passes for sound finance among the elect.
But suppose enough bank paper is issued
to absorb all the greenbacks and Sher-
man notes, will that protect the treasury
gold? Not at all. The government
paper has been presented because men
want gold, and the present and last adj
ministrations have transferred the
option to the note holder on the theory
that the government must be ready to
furnish gold without limit in order to
maintain the parity of the metals. If
greenbacks and other government paper
calling for coin are put out of the way,
the demand would be made for the re.
demption of silver in gold, and we will
be told that any failure on the part OF
the government to redeem all silver and
silver certificates I'M gold will send gold to
premium and place the country on a
silver basis. The banks want the right
to redeem their notes in any lawful
money, as they had during the war
| when bank notes never went above
| greenbacks, but the same banks insist
that the government must pay in gold
even when the gold is demanded in pur
| suance of an organized attack on the
credit of the country.
There are only three means by which
the government can protect itself against
a gold-gambling conspiracy. One is by
| paying silver, which l believe the gov
ernment now has right to do; another
is by so changing the law that govern
ment paper shall be redeemable not il
gold or silver, but in bonds, and the thirC
is to make the government paper IRE
deemable in the sense that the govern
ment is required to give any other kline
OF money for it, but receivable for al
government eqsirements and made lega
tender for private debts.
prefer the first plan, for the presen
Mt least, and it can be put into operation
without any new legislation by rationa
construction of the law giving the optiol
to the treasury in redeeming government
paper. Mr.. Johnson of Ohio is stron
advocate of the second plan, while tn
Populists favor the third plan.--Con
gresham W. ]. Bryan in Omaha World
Herald.