Mexico weekly ledger., 1898-03-03

easily convertible, and to this end
provide a very strict and rigid system
Of inspection. AS I stated in my last
letter, this is simply the J~effersonian
doctrine of local self government ap-
Piled to finance. The argument that
the entire banking system would pass
into the hands of a few men and be-
come a great monopoly is absurd from
the very nature of the case, and in the
event such a condition is threatened
the fact remains that the power that
makes can unmake. The system could
be and, as everyone knows, it would
be abolished, if it failed to perform its
satisfactorily to the country.
THE TRUTH ABOUT JEFFERSON AND
JACKSON.
In closing ] desire to say a few
words in reference to Mr.. Cauthorn's
remarks about Thomas Jefferson and
Andrew Jackson. 1t will be rennem-
bered that in my last letter 1 put Mr..
Jefferson on the stand for the purpose
of describing the disastrous effects of
fiat money during the revolutionary
period. also made a quotation from
him in which he denounced the right
of the Federal government to make
paper money legal tender for the pay
ment Of debts. I never for a moment
claimed that he or jackson ever
favored the old United States banks.
Every student of history knows that
these old banks were opposed by both
of these men, especially after they
were dragged into politics; but it must
be remembered that the old United
States banks were altogether different
institutions from the system 1 pro-
pose. Each of these institutions, as ID
well known, was a monopoly and had
the sole power to issue money. The
government, furthermore, was very
largely interested In them; in fact,
they became a part of the machinery
of finance of the government. 1t must
be stated, however, to the credit of
these old banks, that they served the
people well until they became the
tools of politicians. Henry Clay was
more responsible for the destruction
of the second United States bank than
was Andrew jackson. Jackson never
opposed the bank until Clay took it up
and made it an issue in the Presi-
Dental campaign for the sole purpose
OF defeating Jackson with it, the result
being that Clay was defeated and the
bank destroyed. None of US would
defend the old United States bank
system, which was opposed both by
Jefferson and Jackson under these cir
cumstances.
Now, what Ia the truth about the
position of Jefferson on the money
question? The truth is that Jefferson
was a hard money man and believed
in paying of the debts of the govern
ment and using nothing but gold and
silver as money. MI. Cauthorn proves
this in his following quotation from
Jefferson: "I have ever opposed
monay of the banks, not those dis
counting for cash, but those foisting
their own paper in circulation and
thus banishipg our cash." This shows
that Mr.. Jefferson is not opposed to a
system of banking which will insure
the use of cash. 1t must be remem-
bered, too, that this letter was written
in 1914, just after the charter of the
fret United States bank had expired,
and when the country was filled with
small banks of issue that were neither
stable nor in anyway responsible. The
effect of SO many banks at this period
was that a large amount of paper
money was issued, without any re-
~striction whatever, resulting in the
general banishing of cash from the
country. This is what Mr.. Jefferson had
In mind when he used the other ok
preston which Mr.. Cauthorn quoted:
"Clearly we are undone, my dear sir, il
this banking mania is not suppressed"
The truth about jackson, is that he
and Benton and Calhoun were known
as hard money men and were the
real originators of the gold standard
In this country. 1t was Jackson's ad-
m~inistration, with Mr.. Benton as its
mouthpiece, that changed the ratio
from fifteen to one to sixteen to one
for the avowed purpose of changing
the standard from silver to gold. And
I will say further that after Jackson
vetoed the bill rechartering the sec.
ond United States Bank, the party
to which he belonged favored a policy
of local banking very similar to the
one which I have recommended, the
main difference being, that under my
scheme the banks of issue are char
tered and are under the supervision OF
the national government, while the
Jackson party advocated a system OF
State banks.
I will not undertake a review of the
history of State banks. Will say,
however, that in some cases they
yielded good results, but in most in
stances were unsatisfactory,an taken
as a whole, the system cannot be said
to have been a success in the United
States. I think all will agree that our
money should be OF a national charac-
ter SO that 1t will circulate in one part
of the country as readily as in another.
There is one citation Mr.. Cauthorn
makes from Jefferson which / acqui-
esce In most heartily and that is his
quotation from the Declaration of In
dependence, as follows: s'The united
colonies are, and of right ought to be,
free and independent states; for the
support of this declaration, with a firm
reliance OF the protection of Divine
Providence, we mutually pledge to
each other our lives, our fortunes and
our sacred honor" After thinking
the matter over carefully, I have
reached the conclusion that the Decla-
ration of Independence is the only po-
fitical platform upon which Mr.. eau
thorn and myself can stand together
with any degree of harmony, hence,
while on this common ground, / de-
sire, with expressions or good will and
esteem, to respectfully take my leave
and bid him adieu.
varv TrnIy