Hutchinson gazette. [volume] (Hutchinson, Kan.) 1895-1902, 1898-06-23
MONEY VS.. BANK NOTES.
JOHN DAVIS FAVoRs MONEY
NOT BANK NOTES.
lie Quotes the Words of John sherman
Before That Statesman Abandoned
the People and was Made Rich by his
new Masters.

In recent articles have shown the
proper way for the U. =. government
to obtain tho very best war money
without cost to the people. ! have re.
commended the same sort of govern
ment paper that was used In the wars
OF 1912, ls46 and In the sixtieh The
non'lnterest bearing treasury notes or
grecnbaclss, made more or leAs legal
tender, have been the favorlte and the
very best war money OF this country.
Yet, In spite of these plain facts in
national history, II is evident that the
present administration Mt Washington
10 determined TO disregard these illus
trious examples, and TO adopt n new,
costly and very dangerous policy in
the war with Spain.
II is argued that the issue OF green
backs should he the last resort for
money and not the lrst In former
wars the policy has been 10 issue green
backs or treasury notes first and bonds
Inst. This was the uniform policy in
every war have mentioned. 1t was u
good policy Why reverse IL?
The answer to that question is easy.
II is because bonds are now desired on
which to found colossal banking sys-
tenn, The banks will buy the bonds,
On them they will issue notes which
they will loan to the people, The
banks will thus draw interest on both
the bonds and the currency. The peo-
pie will pay interest on botll, No bond
ever floats without drawing interest;
and no bank note ever enters the circu-
lation unless some person first borrows
1t and gives to the bank his interest
bearing note
The greenbacl costs the people moth
ing except the printing Of the bills.
They go into circulation without being
borrowed; and they pay their face
value OF government obligation in the
very act Of being paid out. The issue
and use Of greenbacks reduces the
debts of the country. The issue and
use OF bonds and bank notes increases
the debts Of the country in n two fold
degree; ~ by the sale Of interest-bear-
ing bonds; (9) by the loaning of the
bank notes on individual bearing pa
per before the bank notes can enter
the circulation.
These facts show why the ancient
policy Of this country is now to be re-
versed. II is done in the interest of a
BODYBUILDING plutocracy, and against
the interest Of the people.
/ now call attention to the very high
est testimony on the subject, as to the
wisdom OF the two policies Mr. j.
Stanley Jevons, II standard English
writer, favors government money as
against bank currency, and says;
"As almost everyone has long agreed
to place the coinage Of money in the
hands Of the executive government, so
| believe that the issue Of paper repre-
sentative money should continue to be
practically in the hands of the govern
ment, or its agents acting under the
strictest Legislative control. NJ VOL
owski, in his admirable works on bank
ing, has maintained that the issue OF
notes is function distinct from the
ordinary operations Of banker; and
Mr. Gladstone has allowed that the
distinction is wholesome and vital
one Bankers ENJOY the utmost degree
Of freedom in this country at present
in every other point, SO that il is who'll
~ confusion Of ideas to speak of the
unrestricted emission Of paper repre-
sentative money as a question Of free
banking"
Albert Gallatin, who was secretary
IF the treasury for two terms under
Jefferson, and also under Madison,
wrote:
"rhe right of issuing paper money
as currency, like that Of issuing gold
and silver coins, belongs exclusively to
the nation, and can not be claimed by
my individuals. "-Gallatin, volume 3,
page 400.
Mr., Gallatin further said:
"But issuing paper currency is not
dealing IN money, but making money
n y y The unrestricted right of
coming gold or silver might be claimed
with as much propriety as that of coin
ing paper currency."--Gallatin, vol
3, page 43l.
The coming and issuing of money is
nm act of sovereignty, and it cannot
properly or legally be performed ex-
cept by n sovereign government
of this matter in 1862, Sena-
tor John Sherman said;
1.-THE power to tx the standard mon
ey, to regulate the medium of ex-
changes, must necessarily go with and
be incident to, the power to regulate
commerce, to borrow money, to coin
money, to maintain armies and navies.
All this high powers are expressly pro.