The San Francisco call., 1896-07-26
CREDIT AND REDEMPTION MONEY

The declaration of the Democratic, the
Populist and the National Silver parties
is substantially the same on the money
question. The reconciliation of silver is
not the paramount issue with either one
of them, albeit they all so declare them
selves. Upon careful reading of the
several platforms it will be found that
their chief aim is to disestablish the
National banks and confer upon the
General Government the sole right to
issue all forms OF money. 1t will be dis
covered, too, that the chieftain is to re-
turn to the "greenback" system of cir
culating money medium with issues
sufficient for the needs of business, and
which paper money shall be a full legal
tender for all debts, private and public.
1t may be said, indeed, that all three of
these parties have adopted the financial
theories of the old Green back party that
fiourished and died between 1876 and
1880. That their position is untenable
there is no doubt whatever If the teach
ing of experience in all ages of the world
is of any value.
The power OF a Government to stamp
anything and oblige its acceptance az
legai-tender money within its own iuris-
diction is not questioned, but it would
require q strict application of the most
extreme form of martial law to oblige
commodity values to refrain from adjust
ing themselves to the commercial value of
the thing of which the "money" was
pade. Commerce knows all about equiv
alency, but it knows nothing about senti-
mentalism. and the history of commerce
is that it finally asserts its supremacy,
edicts of governments to the contrary
notwithstanding. The trouble with the
economists OF the parties named is that
they mistake representatives of value for
value itself
At this time all forms of money in
this country, except gold, are merely
forms of credit, and they differ from
bankers draft and the individuals
check only in the certainty that they will
be redeemed upon presentation. The
greenback, the silver dollar and every
other form in which the Government
gives its sight draft upon the treasury for
redemp ption in actual money is universally
accepted as representing the Nation s
good faith. whici is backed by its power
of taxation to provide itself with that
shall be redeemed in. Ali forms of the
Governments money" issue, except
gold, represent the integrity of the people.
Gold possessing the same value in bars OF
bullion as in coins needs nothing back OF
it to sustain its credit
The mistake these three parties make is
in supposing that the credit of the coun-
try is the equivalent of redemption money
and hence no redemption money is needed.
when, in fact, the country has no credit at
all outside of the faith of its creditors that
it has the inclination and the ability to re-
deem its credit money. 1t is of no conse-
quence to the users of money what kind OF
credit money they have. whether of metal
or paper, nor do they want to present it
for redemption. hut what they do want
is to know that the Issuer has the
ability and is ready to redeem it on
presentation. This feature of credit
and redemption is we'll illustrated by a
man who, hearing that the bank in which
he kept his earnings had failed, rushed off
to the bank and demanded his deposit.
Very deliberately the teller began TO count
out his money,to him. "But have YOU the
money to pay me?' asked the man.
"Plenty of it. Here is your money! re-
sponded the teller. "Well, if you have il
do not want it, but if you haven't it do
want it, said the depositor as he walked
away without his deposit.
The Republican party is for sound
money-money that is sound because
commerce has faith that back of the
Nations various forms of circulating
medium is universally recognized re-
demption monsy which the integrity of
the Government guarantees shall be forth
coming on demand. But the Republican
party believes that commerce would be
stronger and more active il the volume OF
redemption money were larger, and hence
1t proposes to agree with commerce that
the volume be increased by making silver
dollars coequal with gold dollars in every
field that commerce enters. In other
words 1t is the purpose of the RepubIiea n