The representative. [volume] (St. Paul, Minn.) 1893-1901, 1896-04-22

would be nearer system where commodi-
ties would be exchanged with money acting
as the medium, instead of bank credit act
ing as that medium. Some would say. "a
cash basis.
''Nonsenser' said the banker. Business
will always be done with credit. Men must
borrow money at tfmes.''
True" answered the editor "And there
should be money that they can borrow.
Under your banking system they borrow
your credit -
81 see it." said the merchant. "You
claim that the banker should loan me
money, in exchange for my note, whereas
they now loan me their credit, which pre-
tends to be money, and isn't money, but
does the work Of money In the absence OF
money"
That's the point said the editor.
81 hold" said the farmer. THAT there
should be cheap ard convenient SYSTEM
for exchanging the products OF labor for the
benefit of the people, asaaf
That's my claim SAID the editor. '.And
the system should be of the people andsfor
the people. Government banks and postal
savings banks are the need of the hour.
The real money question today is not
question of gold and silver; although the
contest may perhaps rage on this phase OF
it. The question is not whether credit can
be dispensed with. but what is its best pos
sibe form-the most stable. the least liable
to abuse, and the most convenient and
cheap. The banks have so long been in
possession of this power that they naturally
conclude they have an exclusive vested
right, and that even the government has no
right to use the credit OF the people as
money. The irrepressible conflict is be.
tween the credit of the banks for the bene-
fit of the banks and the money of the people
issued to them direct from the govern
ment.'' fsss g. :,
Money!" said the banker in an inqu.r-
ing tone and surprised manner. why
there is money enough! Money never was
cheaper Money is drug N the market. !"
You force me to again point to the fact"
said the editor, "that you mean bank credit
when you say money"
eff government created volume Of
| money sufficient to replace the credit now
issued by the banks. could not the banks
| control It as easily as they now control
their credit" asked the merchant. 49,
NO. answered the editor. 49,
"Why?" asked the merchant.
Because said the editor, ''they own
their credit, and can create it or retire it
| at their pleasure. Money. on the contrary.
would have a tangible existence, would ne
an honest title to wealth, and as such would
be controlled by many different owners.
| The volume of that which does the money
work may be compared to a canal, on
which ships of commerce are sailing. The
canal must be kept always full; to over
I flow it or to lessen the depth Of the water
| IS disastrous. The bankers are placed in
charge of the canal, and can float the crafts
] or ground them"
! That sounds we'll" sneered the banker
| but as matter of fact we are competent
to tend the canal. for we can furnish an
elastic currency-just enough and no more
1 to float the whole outfit"
| ':Why IS the rate Of interest in Southern
and Western states higher than it IS IN the
East on the same securities:" was asked,
1.-The first movement Of crops is done
mostly with actual money: bankers credit
as substitute for money doesn't settle the
bill. The demand for money in the East
ut.lzes all that the money centers secure
and the East has the cali on it. Southern
and Western demand must pay Eastern
rates for it, and also express charges for
shipping from the money center to the
| crop-producing localities, and the demand
/ itself increases tne interest rate. AS more
! commodities and more labor seek to value
| themselves in money. it tends to a scarcity
everywhere: and the money rises n It's pur-
chasing power are related to them
| "Interest rates on best securities are
low" said the banker.
(which fact does not indicate plenty OF
money. but competition between money
| lenders, who desire bonds which have the
| tax-producing capacity of the people be
| hind them. They are safe securities, and
not IN sufficient quantity to supply the de-
mand OF conservative investors. Demand
and supply fixes the rate of interest--the
volume of money in existence is not the
principal, factor" answered the editor.
Gould a government system be more
Efficient" asked the banker.
Certainly" answered the editor, cor the
reason that government could create the
money when needed. AS it is now, under
you- gold basis system, the increase IN the
aggregate Of money is stopped except o2e
can provide 4.O3 pounds of gold when be
wants to add $1,000 to it,
/ "What would become of money issued
by government, when 1t wasn't needed IN
! the canal?" asked the banker.
! 1T would come to the postal savings
! bank when it could not be employed at q
/ larger rate OF interest; the postal saving
| bank would be the barometer or guaae tc
1 indicate when the money channels were
Overlooking. That would be an automatic
SYSTEM answered the editor.
THE gold men say that the gold basis i
an automatic system said some one.
yes said the editor. 1.-The guage being
the yield of the mines. Creditor and debtor
alike take chances that the mines may yiel6
more or less; and the supply of money de-
ponds upon the yield of the mines. Tna'
is different from an automatic system thai
assures suffic:ency in any event, and g
stable quantity that will Go justice to bott
4 debtor and creditor. Even the banker:
credit is limited by the yield of the goie
mine. No matter, how great may be TIKI
increase in population. or how large ma,
| be the demands for money, the volume o
| money too,s must be limited by the yielt
4 of the gold mine, and there must be NJ
4 money in a legal sense except gold. TIT
4 attempt to confine growing nation dix
A the United States within the limits of
/ gold basis, would find parallel in the fit
/ ting of metal suit to growing boy. On,
4 of two results are certain. The suit wi.
either Kill the boy, or the boy Will bust
the suit"
a Continued next week)
4 CATARRH CANNOT BE CURED