The weekly intelligencer. [volume] (Lexington, Mo.) 1891-1901, 1896-04-11

The following letter, addressed to
Congressman Brosius by Henry Cary
Bard, the celebrated political cconO-
mist, fully explains itself;
PHILADELPHIA, March "a, 1896
Hon Marriott Brosius NJ. c Washington, ID. C.
DEAR SIR: | beg to uckuOwl dye
receipt of your favor of the 18Th inst.
in which you ask me to Indicate what
change | .'would make in the banking
system or IN our monetary system in
any of lis features :" and II gives me
pleasure, briefly to comply with your
request.
FIRST, in regard TO our banking
system: That system Is based npon
the same great fallacy as the wicsed
ness of Lord Oserstone's Bank Act OF
of 1874, known as "Peels Bank Act"
This fallacy is that of attempting TO
regulate the bank operations through
the currency, instead of acting directly
upon the bank itself The currency
belongs to the whole people, and if the
British government or the United
States government abdicates the right
of furnishing the currency, il should
| not permit the bank or banks to
tamper with it, or TO regulate their
l)ans by the amount of currency in
their possession, on a given day. AS
far back as 1888, Carey in "The Credit
System in France, Great Britain and
the United States,' demonstrated con-
clusively, that the test of safe banking,
was to be found in the relation which
the capital of bank bore to the
debtors. The proper way to regulate
the National banks of this country
would, therefore, be a provision of
law, ~ which no bank can loan more
than 100 or $50 per cent. over and
above its capital and surplus.
But, If the Overstone law is still TO
be fixed upon the people of the United
States, then the reserves of the banks
should be kept at home, and not in the
banks of New York, there to stimulate
speculation; to centralize business; and
create panIcs, as the present system
does; placing the whole country at the
mercy of Wall street, and its unprinci-
pied gamblers and pirates, operating
for rise and a fall. This is what l
would do with the bank act.
Now we come to the much larger
question of the currency. L would
cease absorbing myself with the one
idea OF the standard, and what it
should be, and devote myself to put
ting in operation, in full vigor, the
great function of association which
money fulfils. In a word, L would have
gold if we could get eSough of it; l
would add silver, too, il that would be
enough; and if not, paper until we had
enough. Gold is utterly unfit for the
currency of a country, because it is
always liable to export; giving you one
day feast, and another day famine.
IT we could have a large volume of
silver, which was over-valued in the
coinage, that would be an immense
adVaatage, as only the bullion, and
not the coin would be exported. The
attempt at gigantic sacrifice Oens of
thousands of millions of dollars),
during the last thirty-one years, TO
give us currency sat par all over the
world" is one of the most mischievous
results aimed ct by any Legislators in
the world. What is wanted is an
Enexportable currency, which, by Its
continual presence, will give to the
whole body OF the people the ability,
promptly and vigorously, to associate
and combine; to exchange services,
commodities, and ideas among their
several selves. What you and Mr..
Walker, the chalrmrn of your COM
mittee, would do, would be to make
enormous sacrifices to the end that the
people should wake up one day and
find almost the entire basis upon which
their power to associate rested, fleeing
across the Atlantic Ocean. This,
permit me to say, is not craftsmanship;
IL does not lcad to prosperity, to
business, to virtue, to civilization, but
it leads = the waste of labor-power,
the most perishable OF all commodities,
to poverty, to decentralization, to crime
and TO barbarism.
II Won will once recognize In its full
force that the great truth enunciated
by Carey, that the greatest need OF
man Is that of ASSOCIATION with his
fellow men, and that money is the
instrument of that association, you will
then prepare yourself to leave the
company of the men, who are now
driving these people TO desperation,
and you will join the silver men, who
a -ould rescue them from destruction.
In connection with this matter
Sffi,re me by carefully reading the
within tract, "Association, the DOM
.inabioe. Need of Man, and the Key
Note Of Social Science" AS for
,myseH, L have left the republican party
in disgsst, and l simply look on with
lcuriosity ct the fight between the
McKInleys. the Reeds, the Morton's
and the Lesser fry, the success OF none
of whom pGamises to the country
permanent Improvement. 1 am old,
and would fam see few years OF
prosperity, but ,Isader the domination
Il tke credit-power, controlling Inc
-sn >sbaican party, see no prospect.
Very respectfully yours,