Alma record. (Alma, Mich.) 1878-1928, 1896-01-10

Day by day the ract becomes clearer
that in their pretended warfare upon
silver and in favor of what they are
pleased to call sound money the real
purpose Of the great banking interests
Of the country is to obtain complete
control of the national currency. Not
only do they wish TO destroy silver
thus making gold scarce and dear, but
they would so farther and issue all the
paper currency of the country That
is, they want to do away with all gov
ernment issues of paper, and substitute
national banl, notes.
The argument used is that as long as
We have United States paper money in
circulation, il is subject TO redemption,
and hence large gold reserve is neces-
sary. But if government paper is all
Withdrawn, then gold reserve Will no
longer be needed.
Let Us look at this matter for mo-
ment 1t is we'll known that in general
there is very little United States cur
rency presented for redemption except
when gold is needed for export. The
bimetallists say that the Government
should not surrender gold for this pur-
pose. but should redeem with silver,
whenever necessary to protect the gold
reserve.
That if Larzard Freres or the Ichel-
heimers or anyone else desires gold for
export, they should get it from the
banks. which have large sums in their
vaults.
Instantly comes the answer that TINS
would never do, because the banks
would charge a commission, gold
would go to premium at once; ana
then comes q vague intimation OF all
sorts of dreadful things to befall our
unhappy country the moment gold
reaches a premium.
There are several things which car
~ our gold abroad The principal fac
tor is the annual interest charge on
our foreign debt, amounting, it is esti-
mated. to 5000 600 600. Then there are
the adverse trade balances, the eXpendi-
lures of American tourists, and the
dowries of American heiresses married
to titled foreigners. All of these must
continue 10 operate, whether our cur
rency consists of one kind of paper or
another.
Now suppose the greenbacks and all
other forms of United States currency
are retired, and the gold reserve is per-
mtted to melt away. 1t becomes nee
essary to send 100000 TO Europe.
Where will it be obtained? From the
banks, of course. If the banks would
charge a commission now, they would
do the same after the United States
notes are withdrawn. The retirement
of government paper would not make
them any more liberal So the only
argument ever made in favor of substi-
tuting bank notes for government pa
per utterly fails.
There Is, however, nothing in the
point made to frequently about gold go
ing to a premium, and the arguments
Of the gold men themselves prove it.
They persistently claim that true BIZ
metallism never existed in France, and
in support of the claim it is alleged
that from 1906 to 1850 gold was nearly
always at a premium in that country.
That is the banks charged a commits
sion for making the exchange of gold
for silver. For the sake of the discus
sion, concede this to be true.
Who ever heard of France being
ruined by that premium? No one. So
far from it she was the most prosperous
country in all Europe. The commits
sion was a matter which never affected
the coins in circulation at all. 1t was
merely transaction between the
banks and those who wanted gold for
export. If the banks sought to charge
more than the exporter could afford to
pay, he simply did not pay it. In
stead of gold, he sent something else
exchange, silver or commodities. And
so it would be here.
The cry of premium on gold is
merely scare crow" The gold ad-
vocates would make people who never
see a gold piece from one years end
to another, believe that the moment
gold rises a cent or two above some
other kind Of money, the whole coun-
try will go to the dogs Gold is al
ready at premium of 100 per cent,
measured in the products of the farm.
The gold champion can see nothing
wrong about that; but he is Mortified at
the thought of gold dollar being
worth cent or two cents more than
some other kind of a dollar But the
point to which the readers mind is
here sought to be especially directed,
is that the substitution of bank notes
for United States notes would do no
good. II would certainly add nothing
TO the output of our gold mines. 1t
would not stop gold from going abroad
when needed there; it would bring no
gold into the country, it would add
nothing to the aggregate supply any
where, and the scarcity of gold would
threaten our finances just as it does to-
day.
The truth is, gold is scarce every
where, except in a few great banks.
Silver has bepn dpmonotized tho do