The representative. [volume] (St. Paul, Minn.) 1893-1901, 1895-11-06
MERRIAM'S BANKING PLAN.
is READY TO HELP IF NECESSARY
BROTHER BALL GOES FOR HIM.
KIND WORDS.

is READY TO HELP IF NECESSARILY
BROTHER BALL GOES FOR HIM.
KIND WORDS.
Editor Representatives:
The papers are booming the Mer-
riam banking plan, as the thing to save
the United States treasury from bank
ruptcy. A currency plan is good or bad
to a government in just the ratio that it
enriches or impOVerisheS the government,
That Merriam's plan is the worst for the
government and people AMI the best for
the bankers that has yet been devised,
and hence most likely to be adopted by
the present congress; | will now proceed
to show
Outside of gold certificates and nation
al bank notes the government has is
sued the vast sum of 1896 159, 72S, and
if to this we add 81 900 900 of old fractiOn-
al currency which ever and anon hobs up
serenely as a part of our circulating me-
dunn, we have over 5000 .000 900 of which
40 per cent of the capital stock is to just
cover, we have $2,250. 900 900 of banking
capital. Of this sum per cent is depos-
tied with the comptroller of the cur
rency, SIP, 500. 900. On this sum the
bankers want per cent interest paid to
them. $3.50. 900. which must be deducted,
leaving under government control as a
set off for 81, go. 900. 900 of bank stock.
s., O09, 900. 900 leaving the small margin Of
unsecured money for merely wild cat
purposes 81 .241 900 with nothing to
cover but the Individual responsibility
of the stockholders in double liability,
which is just nothing at all, for Mer-
riam, rich as he is, if he saw a crash in
the immediate future, could transfer his
stock toirresponsible parties before he
closed his doors.
Gov Merriam would be magnanimous
like Mr.. Guppy. On the average crcu-
latiOn of unsecured bank notes guaran-
teed by the government from loss to the
I>;11 J,N1l no M onJ1f
which would yield the government a pos
sible revenue of s22, $40. 000 Is not that
cheeky? Ask the government to guaran-
tee 81, $50 600 900 of notes. secure only As
per cent of them. on which they may reap
an annual interest of $3.50 100000, and re-
turn for all this only one-seventh. Why.
they don't offer the government decent
owl i'm exchange for the fat turkey they
are getting.
Now. contrast this with the Town bank
BILL introduced by eX-COngressman Dun
nell in 1890. which proposed to issue bills
to 95 per cent of bonds not exceeding the
assessed valuation of any town, village.
city or other corporation organized for
municipal purposes. Now, as the as
sessed valuation of all property in the
United States is not over $50, 500 600 900, it
would be impossible to get out more
than 81, $500, 600 900 of currency less than
Merriams plan might utter. These
bonds at per cent interest would yield
to the government an annual revenue OF
SCI 500 900. A town or village assessed
authorities. In supplying towns with cur
rency to put into good roads. bridges,
water works. etc. or to loan to indi-
vi1uals on security approved by town
authorities. In supplying town with cur
rency the government might use any
form of paper it now has. or supply new
(Which would be prefera ble) the kind be.
ing immaterial so long as it was sound
money. The towns being authorized to
do general banking business. they
would manipulate monety so as to yield
the biggest revenue to the town, instead
of themselves. and would no longer have
the power or disposition to harm a hod-
carrier financially. 1t is the right Of
means to do i'll deeds that often causes