The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-08-28
Il. 60NSPIRACy.
TO INACCURATE ANOTHER
AND WORSE CRISIS.
The Banks Propose That the Com
ing Congress Shall Wipe Out
the Greenbacks.
THE TERRIBLE CONSEQUENCES
READ! READ! READ!
New York Voice.)

(New York Voice0
Little by little it becomes apparent
that the associated bankers Of this
country are gathering their forces for
a mighty struggle during the next ses-
sion Of Congress.
No public proclamation has been is
sued and no brass bands are being en-
ployed; but unless all indications are
misleading, there is on foot definite,
concerted movement that is likely to
change the line of battle on the cur
rency question.
The purpose CT the bankers is this:
to strike with all their power for a
law that shall put out of existence.
once for all, the entire issue Of United
States notes know as greenbacks.
The plea which they will make will
be the highly patriotic plea that this
action is necessary to rescue the
treasury from its perilous position
and establish the nations finances on
, firm basis
The plea will be false one, the pa
triotc professions will be deluSive,
and the result Of the action proposed
will be far-reaching disaster whose
ultimate consequences are incalcul-
able.
Here are the facts There are in
circulation, today about $340, ,OO0,O 900 of
greenbacks. Those greenbacks repre-
sent policy in DIRECT antagonism to
the policy underlying the national
bank system, and they have from the
beginning been regarded by the bank
rrs with hostile eyes. They insisted
ON their retirement as part Of the
plan of resumption 20 years ago, and
this retirement was actually begun.
So immediate and stern was the popu-
lar protest, however, that that prOvis-
ion of the law was repealed and the
greenbackS preserved as a part Of the
national currency. From that day to
this the bankers have sulkily watched
for their opportunity and they think
they have it now. Whether they
have it or not, they can not safely
wait any longer. The national bank
ers' convention held few weeks ago
took steps to urge upon Congress the
retirement of the greenbacks. The
journals that best represent the
thought Of the organization have
been for six months, with infinite tact
and skill, testing the public temper on
the subject. The public has not taken
alarm. The time seems auspiciouS.
The plans have been cOnsummated.
The bill is already being prepared for
Vffecting the desired end.
What is the motive behind all this?
Nl,a ct hi ic l,ic n1,~
greenbacks are eXchangeable on de.
mand, at the United States treasury,
for gold. They are the vehicle by
means of which the gold reserve has
been taken out of the treasury. On
the face Of affairs, they are to blame
for the treaSury'S recent troubles.
What more plausible, therefore, than
to say, as the bankers do, that the
real remedy is to retire these green
backs as fast as redeemed, destroying
them at once instead Of reissuing
them, and thus putting stop to the
"endless~ chain of buckets" that is car
rying away our gold?
This is the argument. 1t is plau-
6ible. Is it sound or sincere?
No. On the contrary, it is impos-
sible, when one is acquainted with the
facts, either to believe that the pro-
posed action will remedy matters, or
to believe that the bankers believe it
will.
In the first place, the greenbacks
have not caused the treasury'S trou-
bles, for they have circulated for 20
years without trouble Of any kind, land
conditions, so far as they are concern
ed are the same now as here tofore.
The gold drawn from the treasury has
been drawn for export. Destroying
the greenbacks would not destroy the
demand for gold for export, nor render
it any more difficult to obtain it. The
situation would be as Matthew Mar
says it would:
''If the legal tenders were retired
all debts, including bank deposits,
would become really payable in gold
though nOminally in silver also. The
exporter of gold would demand it from
the banks and the banks would have
either to pay it or to refuse to pay it.
If they paid it the country would lose
the gold just as it is losing it now, land
II they refused to pay it we should
come to the suspension of gold pay
mentS, to avoid which we have for the
last two years made such strenuous
efforts"
The treasurer now reissues the
green odCkS III pay menu Oh govern
mental expenses. If he is, instead of
that, to destroy them, he must pay
those expenses in some other way. Ii
he must receive grecnbacks but can
not any longer pay out greenbacks, it
is as evident as that two and two
make four, that the treasury instead
of being relieved will be still more
greatly embarrassed, and more in
need of help than ever.
No; the associated bankers are not
propsing this action for the relief Of
The treasury or the relief of the coun-
try. Their ostenSible motive is not
their real motive. 1t is impossible to
believe that it is.
What then is their real motive?
Listen!
With the greenbacks out of the
way, there will be no longer any rea-
son for the treaSury's keeping gold
reserve. It will, as a matterof course,
gradually disappear as the greenbacks
are retired. When that event occurs,
the banks will lie the only place to
which any one can 60 to get gold.
The entire circulation of the coun-