The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-09-30

Ex-Governor Horace Boies. Of Iowa,
has put himself directly in line for the
democratic nomination for President
next year. by making a straight Sill
yer declaration. 1t will be remembered
that he was the principal competitor
of Cleveland before the convention OF
1892. He now combines the elements
that will probably be most potent in
the next national convention. He is
n q free silver man. He is a good west
ern man, coming not too far west 10
he accounted outside the doubtful belt
His recent speech in favor Of silver
makes him head the opposition to the
administration forces in Iowa. This
speech. which was a very comprehen-
sive one, was delivered at the Palo
Alto fair, September II, and was as
follows:
Ladies and Gentlemen:
The suojccc OF my address may seem
to many of you difficult to understand,
and consequently uninteresting.
I did not select it with the expecta-
I
but because [ believe it more directly
concerns your personal interests and
the welfare of our state and the ma
Ssion than any other of a public char
acter with which the American people
will be called to deal in the near
future.
) It has heen well said that the cur
rency of a country is its life blood
1t necessarily follows that to contain
mate il. is 10 faint the vi-1:s If the
nation through whose arteri IS Il Il
culates and to contract ii is in bust
mess sense to weaken the heart throbs
of the commonwealth, from whose
veins il is recklessly withheld. No
people can long be prosperous without
q currency mat is sounI in quaiit'-
ard ample in quantity Money Is
parely an artificial thing, a creature
Of law. and the source of all law in
mis- country is the will of the people,
EXPRESSED by the votes of their cleo
tors at the polls.
1t is plain. therefore, that those upon
whom the elective franchise is con-
ferred. are directly responsible for the
character of currency with which the
nation is supplied. How necessary,
Their. that those upon whom this
grave responsibility is imposed, should
fairly comprehend the elementary
a principles upon which our currency is
q based. and upon which it is to be
finally and firmly established.
IF in what [ am going to say I can
aid you or any of You in acquiring a
better understanding of this great
question. so that in the discharge of
vOur duties as American citizens you
will be able to exercise the influence
you possess in a way 20 promote the
Weif<re Of the masses Of our people.
and thereby insure the permanency
and add to the glory of our inStitu-
tions. my reward will be complete.
Let US begin this discussion, then, with
rhe inquiry,
What is money!
If ! should hold up before you a ma
tional bank note. the like of which you
constantly handle in the transaction of
your business, and ask if it is money,
many Of you would probably answer
in the affirmative. If you should take
it. however. and carefully read what
1t says, you would see that instead of
D being money. it is a mere promise Of
the bank issuing it to pay money. In
{ a legal sense il does not differ essen
f tally from promissory note made by
an individual.
It circulates as money, because under
our currency system, the bank issuing
81 is required TO keep on deposit with
the secretary of the treasury United
States bonds. to secure the payment
Of ali n IS which it is permitted to
issue. and IN case of a failure of The
bank. the general government redeems
these notes. ard thereby. to the extent
necessary. cancels the bonds deposited
as security for their payment.
The objection mainly urged against
this form OF currency. is that the
bonds which tire bank is required to
deposit draw interest and this the
~ ~ Ill 4
issues It's bills or notes such as [ have
described, up to about the face value
Of the bonds deposited, and these bills
st furnishes to its customers on inter-
est bearing obligations.
TIE result is that the people nav
these banks interest on their capital
invested in their business and they
collect from their customers interest
on the bills or notes that are allowed
TO issue on the strength of the cap
i.al
It is. however, true that they furnish
a circulating medium that is entirely
safe and sound. ana if there is no
cheaper way Of obtaining such a cur
Tency, the people of this nation could
not afford to give it up. notwithstand-
ing the fact that under our laws no
u rne OF these bills is legal tender in
Y payment Of any debt and no man can
be compelled to accept 1t unless he
chooses to DO so.
Treasury Notes.
Passing national bank notes. we hay
outstanding at the present time abou
three hundred millions of dollars il
treaaury notes. which circulate a
money, but if you stop to read the fac
of one OF these notes you will see
does not purport to be money at all
but instead it is a mere promise of tn
United States to pay its face value il
money to the holder on demand. Thes
notes do not draw interest. Private in
dividuals or banking associations hav
nothing to DO with their issue, and tn
sec lrity behind them is the solvenc
81 Ahe government by which they ar
&. s5sued. They are by law made a lega