Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1897-07-09
A "SOUND MONEY" SCHEME.

Sound Money, monthly publica-
ton issued by the National Sound
Money League, publishes ex-senator
Farwell's plan for a currency system.
A reading of the editorial indicates ap-
proval of such scheme and therefore
it is evident that the plan is accept
able to the Sound Money League. 1t
is rs follows:
"First. Let the government fund
its floating debt consisting of green
backs, treasury notes and silver GER
tificates, in 100 year q per cent.
bonds, and refund its bonded debt in
bonds of the same character.
"Sccond. Authorize the National
Banks to use these bonds at par as q
basis for their circulation, and ex-
empt them from all federal taxation
except just enough to pay the ex-
pense of printing their circulating
notes.
"Third. Abolish the sub-treasury
act, and provide that the revenues of
the nation shall be deposited in the
national banks where collected.
Fourth. Sell the silver dollars in
the vaults at Washington for what
they will bring in the market, and as
fast rs those outstanding are returned
to the treasury, let them be sold as
well, and let silver be coined hereafter
at the commercial value instead of 16
to ], and provide that it shall be legal
tender for five dollars and no more"
This plan is most perfect one for
those whom it is intended to benefit,
viz: the national bankers. None bet
ter for that purpose could be devised,
and as the Sound Money League is
composed largely of national bankers
it need not be surprising that they
advocate such measure.
But while this will largely benefit
the national bankers, will it benefit
the people? And if not, shall the
credit currency of the country be
turned over to the national bankers
for their especial benefit because they
say it is the thing to do? Is it fair to
pay these bankers q per cent. interest
ON the bonds and then give them back
the same amount in note currency to
loan in competition with the money of
other bankers and individuals who do
not have this gift of p per cent, and
in addition the use, as deposits, OF the
cash in the hands of the government
Is this note issued to the national
bank any sounder than if issued di-
rect by the government, and if SO of
what does it consist? Sound Money
says it is because it rests upon the ac-
tual property of the banks. This is
worse than q lie, because the only
property of the bank it rests upon is
the government bond and the govern
ment when it issues the bank note
and accepts the bond agrees to re-
deem this note of the bank just as it
does the greenback; they therefore
both rest upon the same thing exactly,
the credit of the government.
Is it good thing for the country to
sell the silver and replace all the
money of the country, except the gold
which is held largely by the national
banks, with bank note currency
which the bankers can initiate or con-
tract at their own sweet will? We
have no fight to make on wealth,
per Sc, or on legitimate banking, they
are both useful and have their proper
places, but for pure unadulterated
gall and effrontery the proposition of
the Sound Money League for the
placing of the currency in their con-
troll takes the lead.