The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1895-11-01

Der 1861 they greatly increased their
circulation, and used means to iniure
the legal-tender. Treasury notes. All
their strength was combined to COM
pei the Government to abandon the
legal-tenders, and to use their sus-
pended notes. If the bank notes
lived the Government notes must die.
This tax was imposed to put an
end to state bank valuation
had the desired effect. The law was
justitiable for the Government had
the same right to suppress this hostile
circulation that it had to put down
any other hostile enemy. &c
For Is years there had been various
issues of state bank notes, almost in
variably followed by disaster and loss
to depositors and note-holders. Yet,
ia the face of all this there is a
strong pressure being brought to bear
TO revive this suicidal policy OF bank
ing. From 1872 to 1862 when the ex-
ception clause was put in the legal
tender act, Treasury notes were re-
ceived the same as gold and silver at
our custom houses. Those of 1912, 'I3
IA Is '37 '3S '29 40 Al AZ 43 '45 '46 al
'4S 81 and go were so received.
From 1889 to 1862 the power of the
Government to create full legal ten
der paper money was never denied and
previous to 1853 all gold silver and
copper coins were full legal tender,
and yet there is nothing said in the
constitution about copper money
Since 1853 minor coins have been a
limited tender. but this act was fol-
lowed by one passed Feb 21st, 1857,
which demonetiZed all foreign coins
of both gold and silver which up to
that time had been a full legal ten
der with our coins, at the values fixed
by our laws, and gold being over
valued since our change OF ratio in
1884; immense quantities of these
foreign gold coins came to the United
States and remained, being held in
large amounts by the banks to re-
deem their paper circulation but they
could not use them at par to meet
their liabilities and after the act of
1857, were compelled to sell them at
their home value instead of at the
value fixed upon them by the former
laws of the, United States. They
were sold at discount and sent out
of the country in large quantities,
never again to return; this condition
was one of the prime factors that
caused the panic of 1857 and the
query arises right here, as to what
caused this? Intrinsic value or the
law making power of the Government.
Goldsmith says "Ill fares the land, to
fastening ills prey, where wealth
accumulateS and men decay" and in
my judgment, our greatest danger to-
day as a nation, is not from a rmed
hIlt N M Il n ~
dictate our financial policy and before
whom the most of US bend the "preg-
nant hinges of the knee, that thrift
may follow fawning." [ know as we'll
as any one that it's not good policy
for me to point out to you any weak
places in our present financial system;
it is much more pleasant and profit
able to float with the tide Of public
opinion, and yet l feel constrained to
express my honest opinions if say
anything at all.
The power to issue currency is not
exercised by state banks at the pres
ent as it is not profitable for them to
do so, and pay ten per cent. tax to
our Uncle Samuel, but persons de-
posting money in state banks are bet
ter secured than those who put their
money into national banks, for in the
former the stockholders tat least in
Minnesota and most of the other
states) are liable for twice the amount
of their capital stock; while in the
latter they are only responsible for
the amount of stock owned. And
yet many people believe that in some
way the Government secures depos-
itOrs against loss, but this is all a
mistake and only illustrates the
value of Uncle Samuel'S trade mark
The Government has pledged itself
to make every dollar of our currency
equal to gold dollar in purchasing.
power by redeeming every outstand-
ing obligation in gold although the
law does not require it, and every in
telligent man knows Ito our shame be
it Said) that only for the strong arm
of foreign syndicate our Treasury
would have been in the hands of a re-
ceiver long since, under the ruinOuS
policy at present in force.
The Government cannot pay ten
cents on the dollar today if it was
forced to redeem it's paper, but the
people have not lost faith in our cur
rency, and it's confidence, not the gold
reserve, that maintains the parity of
values. This proposition was illustra-
ted during the late panic, when depos-
itors were drawing their money out
of the banks. not particular as to the
kind given them; anything that had
the Government stamp upon it in the
shape of money, was good enough.
But they doubted the ability of the
bankers to pay. There was no run
upon any postoffice TO get money
orders cashed, and l venture the
assertion that no person present,
would have lost any sleep, if, during
the height of the panic, every dollar
they were worth, had been tied up in
US. postal money orders, for is not
the endorsement of seventy millions
of people better security than that of
any banking association?
The law under which our national
banks are doing business was passed
by Congress and approved June 3,
1864, and it's object was to provide a
market for the bonds and also allow
the non-interest bearing Treasury