Daily capital journal. (Salem, Or.) 1896-1899, 1896-01-02
pANKERs ON FINANCE.

say;
II know OF no legislation that cal
create property. II can take II IRON
one and give to another. by unneces
aary leyles Il can take iron
the taxpayer and give to the tax
eater:restrIctiye and prohibitory tariil
laws can take from the consumer ana
give to the manufacturer. Such laws
Increase the prosperity Of one class
aud in like proportion decrease that
OF another. If congress would, b. .
tcn-line net. declare that all taxes
due the United States shall be paid IN
gold. aud by another provide for the
retiracy Of several hundred millions
OF credit currency, II would at once
nut the money and business OF the
country upon basis Of safety ana
confidence. Possibly either OF such
acts OF congress would be sufficient.
TMr. Bush evidently believes thai
there Is too much paper money IN t'le
country. His conclusion that credi,
paper currency must be retired l.
based on the theory advocated by Mr..
Cleveland that there Is no legal tender
money and ought TO be none but goId
coln.l Ed. JOURNAL.
j. n. Albert, of the Capital Nation
al bank: "Bslieylng the silver-hoard'
ing policy Of the government. aug
mented 10y It's fiat auxiliarles, re-
sponslble for our financial Ills, as a
remedy | would reverse the policy
which caused the trouble, by recon
yerting into bullion all standard
silver dollars received at the treasury
including those represented by silver
certificates, (which ! would cancel
and purchase gold Herewith monthly
funding the 'yacuum'representing our
net loss on the silver deal, into "a pei
cent 3O-year gold bonds available as q
basis Of bank circulation up 10 theii
par value, thus preventing any con-
traction OF the currency. would re-
tire the Sherman notes by the same
process, selling for gold the silver bul-
lion purchased by them. would make
4. y, notes, lgreenbacks) fundablt
into bonds OF the same character
tthey were originally fundable into
5.30sl and henceforth relegate TO thu
banks the function with which thu
government clothed them, when In It's
extremity II forced them TO buy It's
bonds 10 the full amount Of their cap ,
ital, and retire their own circulation, !
replacing II with the new national !
Issue. History demonstrates the evil \
sequence OF fiat money issues, yet nc
government with banking append
age 10 It's exchequcr has been proof ,
against the temptation to indulge In
them, Our excessive indulgenc, ,
has brought us 20 condition re
luiring heroic treatment, which
however, the country will not yet ap
prove nor party utterances Justify.
The government under the Blair anC ]
sherman acts, indirectly, but unde,
nlably, borrowed gold and bought H.
equivalent In silver bullion, at It's
yold market value. IL is indebted
.oday on this account some S5O0, ,OO0, ,OOO y
by silver certificates ano
'oln Sherman notes In our oircula, il
Ion. During the period OF /,
purchase, silver steadily declined In i
ialue, until now our stock ON hand
unused and unusable, is worth SI7O,.
10000 less than cost, Not one ounce I
4 this silver Is available for the re. N
lemption OF Indebtedness outstand. III
ng against II In dollars OF gold. AT
he standard weight OF 25 $40 grains,
which the laws OF the United States ID
eclare shall be the unit OF value and IN
Nth which the secretary OF the treas
ny Is required by law 10 keep ali
ther kinds OF money at a parity. ~
liver certificates, although not ,u
'gal tender from the government, on
etween individuals, yet, by the gov
rnment are receivable for custom %
nd all public dues, per consequence, "'
o gold Is received from the onh
ultimate source OF supply, except -
he sale OF bonds 10 replenlsh the re. ~
,rre. To retire the greenbacks before {
isposing OF the other mongrel lss, es III
Snld deprive the government OF the
ally lawful means OF purchasing eoldl !
" their support. True, they pumn yol
le gold out, but were they retired
~ there would be no way 20 pump {
!, gold In"
I'VE cannot understand how Mr.. Al. =
'rt arrives at the conclusion that A
q greenhacks were retired there A
'nld he no way topump gold into the
'asury. IL gold can be pumped into
treasury with geenhacks why a.
Interest hearing gold bonds 20 buy
az The destruction OF national 4
dit and confidence began when thelH
lnty lost lls eTcnOes. IL musl
back onto q solvent basis WHARF M Il
aklng In money as fast a. ID TnendS n
That Is the foundation og AMI Y
ill and confidence and honor Ia n.
Zee. Some Of Mr. Albert's snRees.
= are clear, but his flnal Conclusion S