The herald., 1896-08-09
THAT BANKERS CIRCULAR
ExhaustiveIy Criticised by Com.
missi01er COIn0n
MONEY POWER AND PEOPLE
! Why Bankers Prefer One Metallic Money
Of Redemption
Policy Of the Government-Restora;io
Of Silver Is the Paramount Issue

SAN FRANCISCO, Aug. 6.-(Specia
correspondence to The Herald) 1t i.
not surprising that the California Bank
ers' association should have issued &;
pamphlet to its clientele and the gen
eral public approving the gold side o
the money question. That is the bank
ers' side of it. 1t is the end that they
have taken from the first. Indeed, i
it had not been for the banks uniting
to uphold the prevailing monetary pol
icy of our government that policy would
long ago have been changed and there
would today be no money question be-
fore the people. 1t was the influence
of the banks of this country and Eng
land operating upon congress that fast
ened upon the United States the incubus
of gold monometallism which the peo-
pie are striving to shake off. Having,
therefore, through self-interest brought
about the present condition naturally
the banks are in favor of its contin-
uance.
The circumstances of the California
association formally entering into the
present contest seems to accentuate the
pregnant fact that it is q struggle be-
tween the money power and the people.
The banks control the money of the
country. In conjunction with the banks
OF England, they come very near con-
trolling the money of the world. The
less of this money there is. except such
as they themselves may be permitted
to issue (as national bank notes) the
easier it is for them to control it. With
but one metallic money of redemption,
or basic money, upon which all the
other forms of money rest il is a COM
paratiVely simple matter to control the
market. We have seen how completely
the supply of gold is within the grasp
of few men on Wall street in New
York and Lombard street in London.
When the government needs a large
sum to strengthen the reserve in the
treasury. The sources of supply are
limited and the output can be safely
predicted Make silver as well as gold
money of full function to pay debts and
redeem issues of bills and notes. and the
eask controlling the market would
be increased just two fold. With silver
pouring into the mints from the mines
ana pouring out in the form of money in
vested by law with the same function
as gold, Wall street and Lombard street
would have bigger job on hand if they
undertook to create corner in the
measure of value
DANho AMI IiE gov ERN MENT
OF course the banks are opposed to the
free coinage of silver. They always
have been against it and they have OBJ
structed every effort that has so far
been made to rehablitate the metal
which they procured to be demonetized.
We propose to speak in this discussion
strictly within the record, and we saw
without reserve that the banks have
dictated the financial policy of the gov
ernment ever sinee the War. Tu soy
that they have dictated it in their own
interest Is to utter that which to every
intelligent mind should go without the
saying. They do not conduct their busi-
ness for their health nor for the benefit
of the public any more than a merchant
runs his store for the exclusive advan-
tage of his neighbors.
Hence when the Bankers association
tell us in the opening paragraph of their
pamphlet that in Issuing it they are
moved by a solemn and pathetic duty"
we involuntarily smile. and wonder if
they are SO trusting and innocent as to
think they can catch the people again.
They have been issuing solemn and pa
thetic declarations on this subject for
many years, but only to those who foot
the bills in the event of a false step in
finance, the producers of wealth, the
common people of our country, who toll
ceaselessly in the praseworthy endeav-
or to earn an honest living and bring up
their children in the fear of God-only to
these has the situation become more
and more solemn with the passing of the
years.
THE PAMPHLET EXAMINED.
1t can scarcely be necessary
to say that in this discus
sion the personnel of the Bankers
association is not to be considered. We
do not think of any man in this connec-
tion; only the institution which he rep
resents, and for which he speaks to the
citizenship of the state In this spirit
therefore, let US examine the pamphlet
which has been issued a S a solemn and
pathetic duty to persuade an oppressed
people that oppression is good for them
The association bases it's right to be
heard on this ground:
"We believe that our profession and
the very nature of our training adapt us
more particularly to pass judgment up
on the questions of our monetary stand
ards and currency"
Now, rs matter of fact, it happens
that the bankers have been, of all class
es, the most unfortunate in their at
temptS to forecast events in this depart.
ment of human experience. If they were
sincere in their predictions, they were
incompetent; if they We're insincere, ,anC
did not believe what they professed
tHey lOTltlleu all llSnL 10 De nedrC
again Oh the subject
THE SHERMAN PURCHASE ACT
The reader will doubtless remember
that the bankers three years ago de
clared as in a single voice that the strin.
gency of the times was the result of tn,
operation of the Sherman silver pur
chase act. He will also remember tha
when the act was repealed a shout wen
up from Wall street and there was gooc
tidings of great joy in every monetary
institution of the land. That silver hat
received another blow was sufficient oc
casion for the joy, but how about tn,
repeal of the act restoring the gooC
times which it was accused Of sa.pplant
ing with distressful times.
The diagnosis of the bankers wa,
false, for the cause Of the disease hein.
removed, the patient was found not t,
get better. but to get worse Now the,
tell us that the source of the afliicfiol
which has befallen our fair land is tn,
continuous agitation for he free coin
age of silver. which if it were stoppe,
things would straightWaY become ex
ceedingly lovely. They also predict tina
the coinage of silver under the Bland ac
would drive out the gold, force the ma
tion to silver basis injure our credi
abroad, and so on, not one of whicI
events came to pass.
THEIR CONTROL DIMINISHED.
OF course, not wishing TO see silverr
stored, as its restoration by doubling t il
volume of basic money would double tn
difficulty of controlling the money mal
ket, while decreasing the purchasn
S,f md ,;,.i,,