People's voice. [volume] (Wellington, Sumner County, Kansas) 1890-1917, 1895-08-22
The Coming Financial Crisis.


that the associated bankers of this
country are gathering their forces for
a mighty struggle during the next
session of congress.
No public proclamation has been
issued and no brass bands are being
employed; but unless all indications
are misleading, there is on foot a
definite, concerted movement that is
likely to change the whole line of
battle on the currency question.
The purpose of the bankers is this:
To strike with ali their power for a
law that shall put out of existence,
once for all, the entire issue of United
States notes known as greenbackS.
The plea which they will make will
be the highly patriotic plea that this
action is necessary to rescue the treas
ury from its perilOus position and
establish the nations finances on a
firm basis.
The plea will be false one, the pat
riotic professions will be deluSive, and
the result of the action proposed will
be a far-rcaching disaster whose ulti-
mate consequences are incalculable.
Here are the facts. There are in
circulation today about S34O,OOO,OOO Of
greenbacks. Those greenbaCks repre-
sent policy in direct antagUnism to
the policy underlying the national
bank system, and they have from the
beginning been regarded by the bank
ers with hos ~. 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 prOyiS-
ion of the law was repealed and the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 suspicious.
The plans have been cOnsummated.
The bill is already being prepared fol-
effecting the desired end.
What is the motive behind all this:
The OstenSible motive is this: The
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
carrying away our gold?
This is the argument. 1t is plaus'
ible. 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, OF
to believe that the bankers believe
it will.
In the first place, the greenbackS
have not caused the Jreasury'S
troubles, for they have circulated for
20 years without trouble of any kind
and conditions, so far as they are con-
cerned, are the same now as hereto
fore. The gold drawn from the treas
ury has been drawn for epxort. De-
stroying the greenbacks would not
destroy the demand for gold for ex
port, nor render it any more difficult
to obtain it. The situation would be
as Matthew Marshall, the financial
writer of The Sun, says it would:
eff the legal tenders were retired
all debts, including bank deposits,
would become really payable in gold
tho nominally in silver also. The eX
porter 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 lost
the gold just as it is losing 1t now
and if they refused to pay it we should
come to the suspension of gold pay
mentS, to avoid which we have fol
the last two years made such strenu-
Gus efforts
The treasurer now reissues TIT
greenbackS in payment Of govern
mental expenses. If he is, instead o
that, to destroy them, he must pa.
those expenses in some other way. l
he must receive greenbacks but can
not any longer pay out greenbacks, i
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