The herald., 1895-01-03
RATIONAL FINANCLERING.

and distinct depsrtments-the depart
ment OF issue; the department OF circu-
lation. ---.----
The government alone should contro
the issue; the circulation falls princi-
pally in the department of banking.
Banks should have no control over, OF
responsibility for the issue, or over the
security back Of the issue. The govern.
mont should not 90 into the department
of banking and should only go so fal
into tine department of circulation as to
see that free and adequate circulation
was furnished for the business wants Of
the people.
The national law governing issue is
this: 1.-THE currency is no better than
the security back OF it."
The greater the security the better the
currency. Hence the best security back
OF an issue gives the best currency.
The government by issuing the cur
rency puts back OF it as security the en-
tire wealth OF the population of the
f, United States and the entire power OF
the 81. 0O0,O people to enforce that ser
curity.
When banks issue currency based
upon their assets and security fund
there is back OF each issue only a few
hundred people, with limited and fugi.
tive wealth.
Now. the whole is greater than any Of
its parts. Therefore the whole wealth,
$40 000, 900. 900. and whole power Of
81 .O00. 900 people back of a national
issue of currency is greater security
than the wealth and power OF few
hundred stockholders in bank and the
bank assets.
The confidence OF the business world
in the security back of the issue is there.
fore the ratio existing between the
assets of bank and of its stock holders,
and the wealth OF the nation and its
$4,000, 900 people.
These two principles undsflie. and
must uuderlie, every proposed form of
tinancisl legislation.
The Carlisle plan, the Baltimore plan,
the state bank plan, and in fact all
plans prominently advocated in congress
are based upon the plan of putting back
of the issue only very small part of the
wealth and power of the whole nation.
Such plan will never euccesaiully meet
the business needs of this people. Pools,
syndioates and combines will break the
weak places with flying wedge.
The strength OF each note is no greater
than the strength OF the individual bank
back OF it. This, OF necessity, is an on
known quantity, and being an unknown
quantity will fail to msnd the conf.
dence of the business world.
The facility with which bank officials,
from collecting clerks to cashiers and
presidents Ito say nothing OF burglars }
wreck bank in spite of the official
supervision and inspection of state and
national commissioners demonstrates
that individual bond security back OF
an Issue is a fraud aud fallacy.
Congress should therefore abandon
the absurd proposition OF trying to make
part equal to, or greater than the
whole.
1t should throw aside every bill that
proposes to put only part OF the wealth
and power OF the people back OF cur
rency to be used by all of the people.
They have been trying an impossible
ity and every bill proposed hereunder
has been knocked to pieces under ordi-
nary debate in congress. And to pre-
vent future similar bills from such
fate. they propose to introduce the gag
rule and choke off debate. They seem
to think that to suppress exposure OF
weakness in bill removes the weak
ness.
Every bill on finances should in de.
bate be pulled to pieces. Any bill that
can be pulled to pieces will not do, is
not what is wanted. lit can be pulled
TO pieces in debate, it will 60 to pieces
after it is enacted and wreck the indus
tries of the people based on it.
IL congress will provide for national
issue OF currency, and guard it by con-
stitutional amendment against initiation,
contraction, or reputation, it will be a
circulating medium that will command
par in any commercial city in the world.
Such a currency would command
the confidence of every man in the
United States. No other system OF issue
will do either.
But how will you stop the run on the
United States treasury for gold?
Why should it be allowed at all? It
10 an abaurdity. Why put out volume
OF circulating medium to meet the de-
mends OF the country, and then imme-
diately proceed to retire it? So long as
this tick remainu in the game so long
will three-card inanciers rob the peo-
pie.
The way to stop the run on the United
States treasury for gold is to stop it.
Cut it off. Cut it out root and branch.
What will people do for gold when
they want it? Let them do as when
they want wheat, cotton, iron or any
other commodity. Let them go into the
market and buy it. This will stop all
runs or gold most effectually, and will
reduce the demand for gold to the lowest
figure.