The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1898-09-16

TELL1GENCER FRIDAY.
/ cson o. 1fcee- h.ll.o-s annually are Can~
ss-rea from producer - consumer. esSe a..
svers ana satisfies these requirements
Prof. Wills. of Kansas.
President wills. Of TIE Kansas Agrse1l-
.,1r-eI college Led - .Ass afternoon. argl-
/ ing for public control Of money. he c5ars-
| II t1a banks with securing legislation ;a-ia
ieaI - sAe interests % the people and BY
raansrsasat ionS havirg produced the rsrltcs
o. Is-3 ard lsa- He cited tbs postoftice
- an instance q the operation q public
/ coasrcs o gr5axc utility and SAID money.
ths greatest OF All public utilities, Should
also be under public coat-o.
l. II. Weller. CT Iowa. followed. stating
that he vas proud ot his position IS 4
| fats Cola - not money -ar ~, nor =
! silver. nor - paper L requires the govern
raent stamp TO make IL money. He devoted
/ rauca tine % the legal tender function Of
| money and the contention that monetary
function & entirely dependent On ils legal
| tender potency conferred by the will Of the
people through legislation
| I. was intended that Congressman Nc
{ Cleary. os Minnesota, should explain TIE
provisions q his currency bin. introduced
q, tae last session OF congress, but the
/ PAPER money champions fred questions al
/ hin 50 fast that the entire Sorty-.ivs min
uteS was taken Up n answering t1en and
4 his pa5er went over 10 the evening session
| The fire OF questions brought out some
/ views on coinage. With reference 20 silver,
| ne said Il had never been de.nonetized in
| the proper meaning Of the word. What had
| taken place was precisely a change IN pol
| Icy as 70 coinage. Il was simply qaes-
| ton OF coming on public account or private
| account.
| A lengthy exposition Of the process and
| history % coinage followed.
| George Fred Williams presented long
| series OF questions 10 which Mr.. McClaary
| attempted 20 reply. but was cut of by the
/ c.anor OF the fiatisLs 20 be heard.
| w W Clay, Of Chicago, said money is
| money by virtue OF the law behind II. He
| Is opposed to the coinage Of gold, silver or
| paper on private account.
| John ?. Irish, OF San Francisco. defended
/ the god standard il few words.
| Chairman Towne came back a. the gold
| mems contents that valve cannot be leg
| .slatei intd substance. By saying thai
| legislation can affect value. The only value
money has is it's exchanges value
4 paper By W. G. Cornwall. OF Buffalo,
y. Y, on deposits. was read by Z. '.
| SmalIey, secretary Of the National Sound
Money League az follows:
Mr.. CornweIrs Paper.
Considerably over sS0a.0N,doo worth Of
| promises are held by the banks Of The Uni
| led States. These promises ara made II,
writing and are signed by all classes OF
| people. Some o. these people have prop
| erty Ike stocks ard bonds, or other forms
Of collateral. which They have PIT up TO
| Others have prospects which they vfr-
| tUaiiy pledge IN their promises to pay
| prospects 90 selling things. Ike wheat.
INN h.r fGH
| work and brain work With the proceeds
| OF The sale Of these things they expect 10
| pay their promises. These promises Are
| the loans and bills discounted held by the
| banks
| "All OF this value in promises 70 pay Is
| used as the basis OF a currency which has
| business Of the United States. The opera
| ton is this: The man with promise turns
| promise in the shape Of right 10 draw
| against the amount Of his promise less the
| discount The right 10 draw is expressed
| in the form OF a deposit 10 his credit. His
| checks against this depos,t are accepted by
| any one he wishes TO pay money 10. and his
checks az once form ,r gparf o. the cur s-
| come into use without concerted action.
| without legislation. almost without the
| knowlsdee OF the great majority Ok the
| people who are using Il daily. This cur
| rsncy is what is known as deposit cur
| rency. i very large part or the business
| Of the United States is carried On with this
/ kind OF currency.
| THE deposits in the banks the basis OF
| this currency. or money. have increased Inc
| from 81 100 90 00o 81 1878 TO S. So.I9,bo in
| lss7 The currency furnished by checks
| against these deposits does . per cent or
the business OF Inc United States Just ex-
| actlv as K would be done with bank notes
| IL there were enough OF them. or with the
| government paper money. This great bulk
| Of payments Is made by checks and drafts.
| no one OF which stays In exictence much
| more than one or TWO days This method
| OF doing this business. as / have said. has
come into use practically without law 10 to
| invention ana choice OF the business pub
| lie and has come into enormous use In the
! United States. while bank notes have been
| cut down n volume from over $50. 90. go
| to under 500. 5oo.0 toe
IF commerce had not been hampered by
| legislation. IL would have made equally
| advantageous use OF bank note currency III
| srGrsely settled regions, where deposit cur
| rency is not available. We have here
| method Of payments which has sprung Up
! Of Itself out ~ the needs OF commerce.
| composed wholly of the product and para
| paernalia cf commerce, so.elv possible Of
! asa IN commerce. and wonderfully adapted
! IN every way FOR sucA use perfect me
| dunn.
| dunn Of exchange, used only Dy com
| MERGE would no. be used al all Il there
were no commerce does Il not seem adj
| missbie and just that commerce should
| decide on its own medium and perfect il
The same process would long ago have per
| fected a system q hank note currency IN
| fered 10 enbArrass, TO eniangle and 10 de-
strov
'3nt note currency ~ exactly the same
! as deposit currency IN It's general prnci-
pie. II il the promise Of the bank gwen.
! rot in the shape Of a right 10 draw against
ii as with 4 deqoslt. but the directly eX.
! pressed promise Of the bank 20 pay divided
! up into single dollars and fixed mult.p!es
+ of single d0ilsrs-oBes twOS. fyes tens,
teenties. hunGE eds-rr!rted on paper and
/ used exactly as the checks against depos-
! It's are used. These. made absolutely safe
/ ~ Il guaranty fund az the banks coAec-
/ lively. pass current IN agricultural and
/ wooded sections where names Of drawers
! Of checks would not he taken because not
! known. These notes have behind them
tie same kind Of assets as deposits. name
+ ly the secured promises OF individuals
who have borrowed thu notes from the
. banks. In order 70 make them d0ubiy
sure - ira Innocent holder they ara made
I "A prior lien on all the assets Of the bank
; issuing them. More Of them cannot go
ont into tire community than are actually
2 1.eteI in business because 10 good Dor