The Black Hills union. [volume] (Rapid City, Pennington County, Dakota [S.D.]) 1889-1904, 1897-04-23
MORGAN'S COLUMN.

MVlaOAN
THE ARKANSAS REFoRMER ON
REPUBLICAN, VICES.
The Plan to Destroy the Greenbacks-
Bankers Collecting Interest on the
Money They Owe to the People
Belated Prosperity-The respect
One OF the objections urged against
the greenbacks is that they furnish an
endless chain with which to drain
the treasury of its gold reserve, and
mus dlscredi. the government. 1t is
further claimed that when this is the
case business men become frightened
ana hoard their mone and we have a
general business depression il not a
panic.
There may be a grain of truth in
these claims, but if so it is no argument
against a government paper currency.
In our opinion, it is a piece of childish
folly to undertake to redeem $346, 000,-
900 with $100, 600, 600, or three dollars
with one. 1t can't be done when the
emergency calls for it, and when the
emergency does not exist it does not
need to be done. The only honest re
demption money" would be dollar for
dollar, such az the silver certificates.
1t is proposed to substitute national
bank notes for the g~reenbacks. For
the life Of ms l can't see how that
will Lelp things. These bank notes
will be r~edeemable, and the present law
only requires a reserve of IS per cent
OF the outstanding circulation. AS a
matter of fact the people have less con-
hdence in the banks than in the gov
eminent. They are more liable to set
the endless chain running on the
bank reserves than on the treasury re-
serve. Without the government back
OF the bank notes they never would
command the confidence of the people
that the greenbacks do.
The trouble is not in the greenbacks,
but in the bankers and brokers who
raid the treasury for gold. No mer-
chant, stockman, manufacturer, me-
chanic or farmer ever presents green
backs to the treasury department for
redemption. This class of people don't
want it redeemed. They are not deal
ing in money, but in merchandise and
only want money to facilitate their
business. 1t is different with the
banker. Money is his merchandise. He
deals in it-buys and sells the use of
it. He is a ]speculator in money, and
hence prefers his own money to that
of the government because his own
will cost him less.
But a bank note is not money. I
have one before me now. 1t says the
bank "will pay" me five dollars. What
does that mean? 1t means the bank
owes me five dollars. Thus the banker
leans his own notes. He collects in
terest on what he owes This is why
he opposes the greenbacks. This is
why he talks about the endless chain"
and the gold reserve in the treasury.
Admitting for arguments sake that it
is necessary to keep a gold reserve for
the redemption of paper money, how
could the banks keep it any better than
the government does and has done? If
there was a panic the run" would
be worse on the banks than on the
government. Not only: would a de-
mand be made for the redemption. Of
notes, but for the r.deposits., Then
financial disaster would: come. Every
bank would have t~o'suspend payment
O.: 60 to the wall:.-We can conceive
OF. no greater mistake than destroying
the greenback and giNingsth banks
full control o,yer>ths, paper currency.
+%.* : ::.m:E - =:
| 1T was Intended by the trainers of the
constitution that: thes United Estates
senate. should DE the balance, wheel in
our government. :For' many years that
body contained the best brains, states
manship and patriotism or the :coun-
Etry. That was before the era of cor
porations, trusts aid >'syndicates. At
least it was before the era when they
could wantonly Control state leegisla-:
TIRES. and peremptorily., demand ma
tional legislation:.S+But it i; different
now. No man is. 'hsAl slpicioned Of being
a statesman because he: happens to be-
lcng to the United States senate. In
f'his election to that place the size If