The Louisiana populist., 1895-12-13
STUPENDOUS. FOLLY.
A PROPOSITION AS DAMNABLE
AS DISGUSTING.
A Banking and Currency system Pro-
posed by the Bankers at their Late
session Held In Atlanta, Ga-For
Iufamy IL L. UnexcelIe1.

Never was people more helplessly
in the clutches of pirate band, than
Is the American people to-day.
Everything now indicates that there
is nothing whatever to hinder their
triumphal march over the bodies OF
their crushed and ruined victims. in a
land laid bare by the relentless hand
OF robbers.
Their victory will place the entire
business interests of the country at
the mercy OF the most defiant gang OF
black-hearted pirates that ever exist
ed on earth.
Heretofore a jealousy among thetn-
selves regarding the division of the
results OF their pluuder has prevented
concert of action.
No lack of sentiment existed as to
the object to be obtained, as every
bankers meeting has fully attested.
but a plan which would satisfy fully
the bloodthirsty demands OF the whole
crew, has been more difficult TO devise.
Now, however, it Is believed that
the problem has been solved.
At the late bankers meeting in At
lsnta plan was developed which un-
doubtedly reaches the acme Of perfsc-
tion In this one respact.
For infamy and ava legalized sys-
tenn OF high handed robbery. 'twould
be without parallel in the history OF
the world.
1t will be remembered that a year
ago these bankers at their meeting ia
Baltimore got up plan.
That plan provided for banks every
where throughout the country having
authority to issue circulating notes,
based on their capital stock, such
notes to be guaranteed by the govern
ment.
Naturally enough this led to discus
sion as to what capital stock might
actually be.
Discussion on this point only en-
phaslzes the fact that it too often rep
presents nothing whatever OF value.
Nothing but bits of paper, printed
perhaps In letters OF gold, but often
times more worthless than il absO-
lutely blank.
Yet for all this, il was at tina. time
seriously proposed that these should
be the basis for every dollar OF cur
rency that would be used as medium
OF exchange In the greatest nation on
earth.
Why did this plan fail'
Merely because the secretary of the
treasury. inspired by the power OF
Wall street. believed that better
scheme OF robbery could be invented.
That plan contained no definite propo-
sition for robbing the people OF what
money they had in the Uni'ed States
treasury except by requiring the gov
ernment to pay 1t out in the redemp-
tion of notes OF broken banks.
The pan, as infamous as it was,
was not so infamous as what was to
follow.
The secretary of the treasury rec
ommended that the plan be modified.
making the banks mutually responsi.
bio for the failures that occur.
That ended the Baltimore plan.
1t were folly to contemplate q
scheme where the only possible incen-
tive to activity would be to see which
one could break first.
The present scheme however is
complete modification OF any piau
ever proposed in this country.
Its author, Mr.. Bradford Rhodes o;
the journal OF Banking" states that
It Is the same as the Bank of England
would be. IL its business was reduced
90 tie ;ssuo danartu,ant Ha o,tl;cae
the features OF the proposition as fol-
lows:
1.-The idea is to have bank char
tered BY bongress confined to the one
function OF issuing circulating notes.
These notes are to be issued il tho
rediscount OF commercial paper Of
fered to II BY the banks OF the coun-
try. state, national and private. All
other banks are to be prohibited from
issuing circulation notes.
The new bank Is to obtain its re-
serves, first, by the subscription OF q
capital OF $50. 900. 600; second, BY the
issue OF its circulating notes in ex-
change for legal tender and treasury
notes and gold. These last notes and
gold are to. be held AS reserve for
The payment of all its notes. This re-
serve would be ample for q circulation
three times its amount at least In
other words, IL the bank should tal-s
in exchange for its own notes 5000. 0J0
In gold, this gold would be q reserve
ample for $500. 900 In notes. The
secretary OF the treasury and comp
troller OF the currency are to be mem
bers. ex ofiicio. of the directory of the
bank. This institution is to have
branches in all the principal cities
and towns OF the country. 1t Is to
be simply and solely bank of issue.
and 1t Is not to come into competition
with other banks IN any shape or
manner. Its source of profit will be
Interest derived from the rediscount
Of commercial paper"
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