Kansas City daily journal. [volume] (Kansas City, Mo.) 1892-1897, 1896-08-31
BRYAA'S NICARAGUA SCHEME
WANTED To BUILD THE CANAL BY
ISSUING GREENBACkS,
Introduced q Bill In Congress In 1894
Which Provided for Such Action
He Made u Speech In
Favor of II.

Washington. Aug. s0-(Special) Some.
thing Of Mr. Bryan's record In congress
may be especially interesting at this time.
"A bill to construct the Nicaragua canal
by issuing greenbacks was introduced by
him on May 1S, 1884. The bill itself de-
ciared 1t to be 'the intent and object of
this act to secure the construction of the
Nicaragua canal by the said company,
with the aid Of the United States. and
under the general supervision of the sec
retary Of the treasury. to the extent herein
provided upon the basis of the conces-
sions of Nicaragua and Costa Rica, now
0wnsd 0racsicSI 5y said Ca canal company as far as
Briefly stated, Mr.. Bryan proposed to
issue $70.000.00O Of greenbacks In seven year
" installments Of $10,0oO.0O0 each to the
tender and to be in every respect the eoual
OF all other money issued by the govern
ment A few days after Introducing this
resentatiyes speech in which he alluded
to his Nicaragua canal bill and stated ito
purposes prefacing with these remarks:
bank. OF issns s'E n ina. nld. we m mi must institute
circulation. I answer that there is a bet
ter way. The issue Of money by the gov
esnment es9i . directly to the people gives us a
whole the profit arising from its ISSUE
When bank issues money you must cay
the market rate Of interest in order to
get IT, but when the government issues
money the people save the interest II the
money is afterward called in, and they
save the principal also If the money IL
kept In circulation. Numerous plans have
been suggested for putting this money into
Some have an idea that a government
the people. either directly or through the
agency Of banks. There are in my judg-
ment other and better ways. II limited
must be strictly limited, and 1t is loaned to
the people. partiality will be shown in It's
distribution. for only q few, relatively
speaking. can be accommodated. But aside
from the danger of placing SO great a pow
er IN the hands Of a dominant party. there
are plans more Just and equitable than
that OF loaning. The money can be used to
pay the expenses of the government, az the
greenbacks now In circulation were issued
to Day the expenses Of war. II congress
decides to increase the currency a GER
go. 900 a year. 1t can reduce the tax levy
TO that extent, and the people will receive
the benent Of the issue Just in proportion
that extent the taxes which they would
otherwise pay.
Then. suggesting that perhaps our we'll
and also oppose an Increase in the volume
of currency would be willing to compro-
mise on an issue OF money to take the
place ass, o. ia 2 part Of the income tax" Mr..
"If the people do not desire to reduce
taxation. government paper can be issued
to pay for special improvements which con-
Kress may deem desirable. Harbors can be
deeoened and rivers can be improved In
this way: have introduced q bill now be-
fo-e the Committee On interstate and for
etgn commerce which provides for the issue
OF United States notes like those author.
tzed In 1852 (now called Ereenbacks), to an
amount not exceeding N000.000. to pay for
the construction Of the Nicaragua canal.
This issue would probably increase the
currency at the rate Of about $l0ooo.0Oo q
great military and commercial Importance
to the United States, and II the govern
ment IL going to assist In the building, IL It
not far better to issue money for the pur-
pose than to borrow money on bonds?
would have preferred to have the money
public and private, even when hereafter
contracted against, but I provided In the
bill for notes identical with the greenbacks
in order to prevent the discussion Of any
collateral questions and to bring vote on
the naked issue. money or bonds
II have mentioned this one canal, but
there are other works Of national impor-
to be increased and do not desire to reduce
taxation. We can, by the issue Of q few
millions a year, construct q ship canal
from Buffalo to the Hudson river. and
thus give to the grain Of the Northwest
ocean rates from Chicago and Duluth to
not to speak Of the military ad-
vantage Of such canal. We might, by
the issue Of a few millions year. connect
the Mississippi river with Lake Michigan.
the Northwest and the South"
This Is fair sample Of the financial
schemes generated in the fertile brain Of
the Boy Orator.