The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-09-09
PAPER MONEY.

A correspondent in a recent issue Of
the Pioneer Press puts forth the follow
ing facts:
WEST ST. PAUL, Aug. 27.-To the
Editor: There appeared in your paper
of Aug. IA, an article entitled Lesson
From History" written by Mr.. Magill.
which deserves attention. Mr. Magiil
endeavors to prove that all history
teaches that the issuing of paper money
has been failure. Mr.. Magill is evil
IDENTIFY not we'll posted in the history of
paper money; if he were he would not
have made any such statement Every
student of economics knows that the
Bank of Venice was organized when the
country was in the thrOes of war, and
when the resources were nearly all ex-
hausted; also that the bank stood for
more than 600 years, and that the cred
it's on the books went to a premium. No
gold or silver was promised them fOE the
redemption of those promises, yet it
stood until the country was overpowered
by foreign nation. Among the many
systems of banking that history records
it records none that was as simple as
perfect, and gave the satisfaction that
the Bank of Venice did.
Mr.. Magill also forgot, or did not know
about the so-called Franklin currency
of our own country, which is familiar to
every student of economics.
Mr.. Magill gives us an object lesson
which is one of the most brazen attempts
that we have read in long time.
He speaks Of the silver advocates
wanting to issue a large amount of pa
per money, which is absolutely untrue,
as their platform and writings show. But
he even goes farther and gives a lesson
from history to prove that this country
could not issue paper money without
bringing on ruin to the people and in
dustry. Let us examine his lesson.
What were the conditions of France in
1790-1796, the time to which he points?
First, we find that she was plunged into
domestic war in 1889, known as the
French revolution, which was brought
on as one of our best historians says. ;,y
overtaxing the people and taking away
from them all Of their civil rights. Prop
erty and human life, were destroyed on
every side. The property upon which
the same money he, speaks of was is
sued, and which he says was destroyed,
was burned, pillaged,' carried away, and
confiscated, and yet he offers this as
lesson from history, Great is his wis
dom. If the South had conquered the
North in the late civil war what would
the bonds have been worth? Practi
cally nothing Let us look at the condi-
ton of our own country, Here we are in
the greatest time of peace the world has
a population of less than % persons to
the square mile, and wealth of at least
0T0 nd hn
Mountains could speak, they would add
10 times that amount to it, and yet Mir.
Magill thinks that his lesson is anaia-
gous. One country in the throes of war
and destruction, and the other in peace,
prosperity, and possessing the greatest
wealth of any nation on earth, except it
self.
Mr.. Magill can, if he wishes to inves-
tigate in history little, learn that on
June /, 1894, that France had over $780,
100000 of unredeemable paper money in
circulation, and if the secretary of
finance tells the truth, and we believe he
does, it was at a premium of 2 per cent
at that time. Mr.. Morgan, one of the
great bankers of New York, wisely said:
1T is the most striking instance of fiat
money the world has" In 1871, when the
France and German war took place,
France had to make over to Germany
an enormous war indemnity, and the
world stood aghast. and thought that it
would never be paid. but by wise legis-
latiOn which authorized the issue of pa
per money, which should be legal ten
der, receivable for taxes and dues, the
war debt was paid in coin, and the peO-
pie given money to carry on business
with without being bonded for genera
tions, as the United States is.
We are aware that there have been
many failures in the issuing of non-re-
deemable paper money, ana we are also
aware that many issues have been made
which were successful and proved bene-
fetal at the time.
The money question is up now for con-
sideration, and let us have fair discus
sion of facts, and not misrepresentation
and facts that are not true. Let us have
the truth and abide by the result, what
ever that may be, but by all means give
us lessons from history that have some
thing in them that can be compared, and
not such as Mr.. Magill has pointed out,
and which history shows not true.
R j. FAUSSETT