The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1898-09-16


day of the national currency conven-
ton began with a paper in support of
an unlimited issue of irredeemable cur
rency by the government by General
NJ. ]. Warner, president of the Amer
lean Bimetallic union. The middle-of-
the-road fiatist editors of the Reform
Press association were SO anxious to
be heard, regardless of the arranged
programme, that it was with difficulty
that Congressman Charles S. Hartman
of Montana, who presided, could keep
them in order.
General Warner said the debate
would be divided into, first, the advO-
cacy of bank currency; second a plea
for a governmental currency to circu-
late cOncurrently with the metals, and
third, an affirmation of an irredeem-
able government paper currency, or alb
solute fiatism. AS to the defense of
falling prices made by the gold stand
ard advocates. he said he cOncurred in
their opinions, except as to farm prod
uctS, for which the labor cost had de-
creased, and with the further quail
fications that there had been no reduc-
ton in the fixed charges, such as
transportation rates, debts and taxes.
1T is gravely proposed in this coun-
try to go far beyond the proposals Of
law and Mirabeau and issue notes on
bank capital and bank assets. In
other words, to no longer cOnfine Sc
curity of notes to tangible things such
as lands and bonds but actually TO
coin bank credits into currency. That
credit is capital and an important part
of effective capital, Will not be denied,
but to convert such capital into cur
rency, to swell the circulating medium
of country and thereby to initiate
prices and render them unstable, must
be pronounced the widest and most
Vicious form of Lavish ever proposed.
Indeed, John Laws proposition to the
Duke of Orleans is conservatism COM
pared to it. That such a scheme should
gain the support of conservative bank
ers is unaccOuntable except upon the
theory that large profits might per-
haps be made for a time, and that the
wise among them could get from under
in time to save themselves whatever
became of the rest and of the people.
THE issue at last lies between a cur
rency issued by 5000 or it may be 10000
banks, as their own interests may die
tate, and withdrawn when it becomes
their interests to withdraw it, and a
national currency issued and controlled
by the government, in accordance with
established principles and under fixed
rules of law. That is the real issue in
this country, and as a part of the whole
money problem is paramount to any
other. In advocating a national cur
reicy, issued and controlled by the gov
eminent, we make no war on banks
or bankers. But the business of bank
ing is one thing and the right to create
money is a very different thing.
The controlling purpose of govern
ment in regulating paper currency
should be to secure the greatest pos
sible stability of value, or in other
words. stability of prices. In order to
preserve the value of paper at par with
metallic money it must be limited in
quantity TO a volume somewhat less, at
any rate not larger. than this country
would have Of the metals, as its dis
tributive share of the worlds money.
Such a currency would be subject to
the same variations, by the inflow and
outflow of the metals as a purely me-
tallic currency would undergo.
"A national currency issued by the
general government should be legal
tender: that is, should be money in
the fullest sense. I hope someone here
will explain just how a paper currency
is made better by depriving it of the
power Of legal tender and what the
public is to gain by the substitution OF
non-legaI tender notes Of banks in the
place of our present legal tender green
back currency.
THE issue is fairly presented be-
tween a currency issued by thousands
of banks. scattered all over the coun-
try. as their interests alone may die
tate-for they will be governed by no
other principle; they can be governed
by no other-and a currency issued and
controlled by the government in the in
terest of all the people and with the
view of securing at all times stability
in the value of money and prices,
thereby producing conditions most ia
vorable to industrial and commercial
prosperity. Whatever may be the re-
suit now, in the end the public well
fare will control. and the power that
controls coinage viii also control the
issue of a paper currency
A reply was made to him by Con-
gresham C. N. Fowler Of New Jersey,
who supported bank currency. Mr.
Fowler said the only logical position
the silverites could take was that OF
General Warner; that if they could
legislate value into silver, they could
legislate value into paper and make 1t
redeem itself.
BANKS MANIPULATE MONEY.
President Wills of the Kansas Ag-
college led of this afternoon,
urguing for public control OF money
He charged the banks with securing
legislation inimical to the interests OF
the people, and. by manipulations, hav-
ing produced the panics of 1873 and
1888. He cited the postoffice as an in
stance of the operation of public con-
troll of public utility, and said money,
the greatest of all public utilities,
should also be under public control
L. H. Weller of Iowa followed, stat
ing that he was proud of his position
as a fiatist Gold is not money. per Sc,
nor is silver, nor is paper. 1t requires
the government stamp TO make it
money. He devoted much time to the
legal tender function of money and the
contention that the monetary function
is entirely dependent on its legal ten
der potency conferred by the win of
the people through legislation.
FIRE OF QUESTIONS.