The midland journal. (Rising Sun, Md.) 1885-1947, 1896-12-04
LIVE ISSUES.
FINANCIAL PANICS.
Cause and Remedy Considered by
Jesse Gilmore.
BENEFITS FROM FREE COINAGE.
Prosperity Comes With an Increased
/; Money Volume; Hard Times With
Scarce Money Supply.
NO. II.

Treasury notes were the only
money that our government could
create and make Immediately avail
able and in adequate volume for
the wants of the suffering people.
The people had the utmost conf
dence in the government money.
Yet every obstacle was placed in
the way of the treasury note being
issued and made one of the per
manent and serviceable moneys for
the people. They were restricted
to the use of treasury notes to be
issued in denomination of not less
than $50, and to be destroyed when
paid back into the treasury-a
mockery.
Congress was run then as now,
by the attorneys of banks, who re-
fused to have issued only undesir-
able temporary treasury notes.
They insisted then as now, that
banks only should issue the paper
money for the people. Yes, bank
notes that are not and cannot be
made a legal tender to pay debts,
and their value to be maintained
by coin basis. When the coin
disappears by expectation or other
wise the bank note becomes worth
less. Away with such fraudulent
currency The people have too
often suffered the pangs of poverty
from such worthless bank issues.
Just as fast as the treasury notes
were destroyed when paid back
into the treasury the times grew
from bad to worse and the suffering
of the people increased. Also the
revenues OF the government contin-
ued to fall off.
The government deposits of about
$40, 100000 in the banks were un-
available, as the government could
not use deprecated bank notes to
pay its expenses. Consequently
our government again had to resort
to the use of treasury notes. Con-
gress on 81 May, 1888, authorized
the issue of $4,000, 900 in treasury
notes to be in denominations of not
less than $50 and to be destroyed
when paid back into the treasury.
Yes, containing the same obnoxious
conditions as those treasury notes
issued in October, 1887, as unde-
sirable, unserviceable, and as tenn
porary for the uses of the people as
possible. If the bankers could not
issue the paper money, then they
would not consent that the people
should have other than the most
Objectionable that could be issued.
They failed to see then just as they
do now, that by preventing the
people from having an ample sup
ply of good legal tender government
money they were injuring the peo-
pie and destroying the banks. But
they ''killed the goose that laid the
golden egg" as only a few banks
ever recovered from the crash. The
bankers are now endeavoring tc
carry out a similar policy by de
handing the funding of the United
States notes and treasury notes into
interest bearing bonds, with the
view of replacing them with bank
notes on a gold basis. Bank notes
that cannot be made legal tender
and when the basis of gold vanishes
the bank notes will become worth
less and the people be left again il
a deplorable condition. Yes, with
out money. The bankers forget tn,
several occasions heretofore, wher
nearly all the gold and silver was
exported, causing the banks to fail
their bank notes to become worth
less and the people nearly ruined
"Experience is a dear school but
fools will learn no other"
An expectation of gold was com
menced in July, 1888, and has beer
continued to the present. From
July 1, 1888, up to August l, 1896
1882, $751;, 1920 net in gold has beer
exported. Suppose the banks were
now taken from their present green,
back basis and put upon gold
basis, how long could they stand
the strain? At least so per cent
of them would fail to pay depositor,
within ninety days. l will show
the weak condition of many of then
in this pamphlet. Banks should
be confined to legitimate banking